Arwa Coffee Franchise Cost, Revenue & Review 2026
- Investment
- $237K – $615K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (2)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Arwa Coffee is a coffee franchise serving traditional Yemeni coffee, espresso drinks, teas, and pastries. Franchisees run the cafes, managing baristas, retail, and counter service.
FranchiseVerdict summary · 2026
A Arwa Coffee franchise requires a total initial investment of $237K – $615K, including a $40K franchise fee and an ongoing 4.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2024. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $237K – $615K
- 33rd pct Service Resta…
- Avg gross sales
- N/A
- Company-owned onlyn=2
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 9
- 35th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $237K – $615K including a $40K franchise fee, 4.0% ongoing royalty.
- RETURNSITEM 19 CAVEAT: Item 19 discloses only two affiliate corporate-owned units' full-year 2025 annual gross sales (Corporate Shop 1 $1,071,952; Corporate Shop 2 $1,063,621 [printed '1,063.621', a typo]); all six franchised units were excluded (five not open full year, one is a mobile cart); results are unaudited; no franchisee average, median, or quartiles were disclosed, so avg/median/quartiles left null.
- RISKVerdict B (Above average), verdict score 48/100 (higher is better).
- GROWTHPositive: net +5 franchised outlets in the latest year (5 opened, 0 closed) (Item 20).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Arwa Coffee Franchising LLC
- CEO title
- President / Director-Manager
- Faris Almatrahi
- Incorporated in
- TX
- HQ
- 1300 N Interstate 35, Suite 100, Carrollton, TX 75006
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $328K
- vs $89K prior year
Overview
About
- CEO
- Faris Almatrahi
- Headquarters
- TX
- Founded
- 2023
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 12% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $15K | $30K |
| Equipment, build-out, other | $182K | $545K |
| Total initial investment | $237K | $615K |
Source: Arwa Coffee 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $237K – $615K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $30K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 4.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $10K |
| Renewal fee | $20K |
| Inventory (initial) | $10K – $15K |
| Total fee load | 5.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Arwa Coffee is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Arwa Coffee unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
ITEM 19 CAVEAT: Item 19 discloses only two affiliate corporate-owned units' full-year 2025 annual gross sales (Corporate Shop 1 $1,071,952; Corporate Shop 2 $1,063,621 [printed '1,063.621', a typo]); all six franchised units were excluded (five not open full year, one is a mobile cart); results are unaudited; no franchisee average, median, or quartiles were disclosed, so avg/median/quartiles left null.
Company-owned outlets only - not franchisee performance
Based on a sample of only 2
- Item 19 type
- Historical Gross Sales of two company-owned units
- Sample size
- 2
- vs category median 19 · small
- Range (low → high)
- $1.1M→$1.1MCited, not corroborated — printed on page 52 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 5.0% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Arwa Coffee Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 5
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 6 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
6
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $911K
- Median loan
- $456K
- 50th percentile
- Charge-off rate
- Under 10 loans (2)
- Insufficient SBA coverage: 2 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (2)
- 5-yr charge-off
- Under 10 loans (2)
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 audited financials for Arwa Coffee Franchising, LLC (the franchisor entity), audited by Metwally CPA PLLC, clean/unqualified opinion; balance sheets as of 12/31/2025 and 12/31/2024, reported in whole USD (not thousands). 2025: Total assets 319,587 = Total liabilities 471,862 + Members' equity deficit (152,275); reconciles exactly. Total revenues 327,743 = initial franchise fees 262,025 + royalties 52,575 + brand development fund 13,143; interest income 1,493 recorded as other income (below operating line); net income 94,349. 2024 total revenues 89,167, net loss (47,732). Negative members' equity results from a 216,500 members' distribution in 2025, not from losses (2025 was profitable). the filing shows financial distress because equity is negative AND the state cover page imposes a 'General Financial Condition' risk factor stating the franchisor's financial condition 'calls into question the franchisor's financial ability to provide services and support.' No going-concern doubt is recorded: the 'going concern' wording in the auditor's report is standard AU-C 570 responsibility boilerplate; the opinion is unqualified with no substantial-doubt/emphasis paragraph and no going-concern footnote. ITEM 19 CAVEAT: Item 19 discloses only two affiliate corporate-owned units' full-year 2025 annual gross sales (Corporate Shop 1 $1,071,952; Corporate Shop 2 $1,063,621 [printed '1,063.621', a typo]); all six franchised units were excluded (five not open full year, one is a mobile cart); results are unaudited; no franchisee average, median, or quartiles were disclosed, so avg/median/quartiles left null.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 48 / 100 verdict
- 01MEDOnly 3 units system-wide — extremely small franchise system with no disclosed growth trajectory; high risk of franchisor failure
- 02MEDNo litigation disclosed but going concern issues suggest potential hidden legal/financial problems
- 03MED4% royalty on undisclosed net margins creates unpredictable cost structure for franchisees
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | AAA offices in the city of franchisor's principal business office |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 66 hrs
- Training location
- Franchisor's headquarters in Carrollton, Texas, the franchised business location, or another designated location (classroom training may be provided remotely)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee proposes; franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Arwa Coffee franchise?
The total investment to open a Arwa Coffee franchise ranges from $237K – $615K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Arwa Coffee franchise owners earn?
Item 19 of the Arwa Coffee FDD discloses outlet figures from $1.1M to $1.1M but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Arwa Coffee?
Arwa Coffee is franchised by Arwa Coffee Franchising LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Arwa Coffee FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Arwa Coffee FDD and qualifies whose outlets they describe.
What is Arwa Coffee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Arwa Coffee (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Arwa Coffee franchise locations are there?
As of their most recent FDD filing, Arwa Coffee has 9 total units in the United States, including 6 franchised units and 3 company-owned units. 5 new units were opened in the latest reporting year.
Is Arwa Coffee a good franchise to buy?
FranchiseVerdict rates Arwa Coffee as a B-grade franchise with a verdict score of 48 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Arwa Coffee, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.