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Arwa Coffee Franchise Cost, Revenue & Review 2026

Quick-Service RestaurantsTXFranchising since 2024
BAbove averageAbove average48/100Editorial grade from public filings; not investment advice.
Investment
$237K – $615K
Disclosed sales
partial, no system average
SBA charge-off
Under 10 loans (2)

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-00181FDD 2026Data QualityStandard76%
Manager-run OKYes: Protected territory

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

Total Investment
$237K – $615K
Median $486K
below median ↓, better than category
Franchise Fee
$40K – $40K
Median $35K
above median ↑, worse than category
Liquid Capital Req'd
$15K – $30K
Median $33K
below median ↓, better than category
Avg Revenue
Partial, no system average
No system average in Item 19
Royalty Rate
4.0%
Median 5.5%
below median ↓, better than category
Ongoing Fees
5.0% of rev
Median 7.5%
below median ↓, better than category
SBA Charge-Off Rate
Under 10 loans (2)
Insufficient SBA coverage: 2 loans, rate hidden below 10
System Size
9 units
Median 18 units
below median ↓, worse than category
Turnover Rate
N/A
Median 0.0%
Territory
Protected, not exclusive
Limits on the franchisor opening nearby; not an exclusive zone
Owner-Operator
Optional
Can hire a manager
Litigation
None disclosed
Clean record

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.

Total investment (Item 7)$237K – $615KCited, not corroborated — printed on page 19 of the 2026 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$40,000Verified — printed on page 11 of the 2026 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty4.0%Cited, not corroborated — printed on page 12 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Ad fund1.0%Cited, not corroborated — printed on page 12 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$15K – $30K

Source: FDD 2026 · Items 5–7

FDD Item 7 · 2026 filing

Initial investment breakdown

Arwa Coffee: Item 7 initial investment breakdown
Cost componentLowHigh
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

Arwa Coffee: Item 6 recurring fees
FeeAmount
Royalty4.0% of gross sales
Marketing / ad fund1.0% of gross sales
Technology fee$100
Transfer fee$10K
Renewal fee$20K
Inventory (initial)$10K – $15K
Total fee load5.0% of rev

What do units actually make?

Avg gross salesNot extracted
Median gross salesNot extracted
Item 19 typeHistorical Gross Sales of …
Sample size2

Source: FDD 2026 · Item 19

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

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?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

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.

Total invested capital · what you put in to openFDD
FDD Item 7: $237K–$615K (midpoint used)
FDD reports $15K–$30K

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.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$448K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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
Gross sales rank
No comparison data
Investment cost rank33th
Lower investment ranks lower (better)
Royalty rate rank3th
Lower royalty = lower percentile (better)
Unit count rank35th
vs Quick-Service Restaurants peers
Risk score rank54th
Lower risk = lower percentile (better)

Compared against 781 Quick-Service Restaurants brands

Showing the headline figures — all 102 extracted fields are in the Full FDD Report · $19 →

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

Metric
Arwa Coffee
Category median
vs median
Investment
$426K
$486Kmiddle half $342K–$748K · n=780
Below median, better than category
Revenue
N/A
$975Kmiddle half $664K–$1.4M · n=284
N/A
Unit Count
9
18middle half 5–79 · n=755
Below median, worse than category

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?

Total units9Verified — printed on page 53 of the 2026 FDD (Item 20), and the table's own arithmetic closes on it three ways.

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
2023
0
Franchised units
2024
1+1
Franchised units
2025
6+5
Franchised units

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?

SBA charge-offUnder 10 loans (2)
Verdict score48/100 (higher is better)
Litigation0 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average48Verdict score 48/100
Moderate confidence±13 pts
3561

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)

Yr 1: $0.3MYr 2: $0.1MNon-royalty: $0.0M

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

  1. 01MEDOnly 3 units system-wide — extremely small franchise system with no disclosed growth trajectory; high risk of franchisor failure
  2. 02MEDNo litigation disclosed but going concern issues suggest potential hidden legal/financial problems
  3. 03MED4% royalty on undisclosed net margins creates unpredictable cost structure for franchisees

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 102 extracted fields are in the Full FDD Report · $19 →

What are you signing up for?

Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.

Initial term10 yrs
Renewal term5 yrs
TerritoryProtected, not exclusive
Initial training80 hrs

Source: FDD 2026 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term5 years
Allowed renewalsℹ2
Territory typeProtected territory
Protected territoryYes
Exclusive territoryℹNo
Territory radius2 mi
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ3 years
Non-compete (miles)ℹ5 mi
Right of first refusalℹYes
Transfer requires consentYes
Termination notice30 days
Curable defaultsℹ2
Mandatory arbitrationYes
Arbitration locationAAA offices in the city of franchisor's principal business office
Jury trial waiverYes
Governing lawTexas
Litigation count0
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

✓Site selection assistance
✓Grand opening support
✗Lease negotiation help

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.