Bad Ass Coffee Of Hawaii
Formerly known as Royal Aloha Coffee, Tea & Smoothies
Bottom line
- Total investment $526K – $992K including a $100K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $665K/year (median $519K).
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 18 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one BAD ASS COFFEE OF HAWAII unit return on the cash you put in?
Unlevered ROIC · per unit
9%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 BAD ASS COFFEE OF HAWAII units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$532K
on $2.7M purchase
Total debt
$2.1M
SBA $1.3M + senior + seller note
Overview
About
Franchisees operate specialty coffee retail locations featuring Hawaii-themed branding and products. Day-to-day operations include managing customer service, inventory, staff scheduling, and point-of-sale transactions in a coffee shop environment with limited food offerings typical of beverage-focused concepts.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Modest growth, hidden profitability metrics, and past litigation signal execution risks in a maturing system where franchisees may struggle to justify $526k+ investment.
Score breakdown · what drove the 46 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to verify actual profitability despite $665k average revenue
- 02MINORSlow unit growth of 6.7% YoY suggests market saturation or franchisee struggles in a mature 33-unit system
- 03HIGHTwo settled litigation cases (promissory note dispute with area developer and international license dispute) indicate operational/contractual friction
- 04MEDHigh initial investment ($526k–$992k) combined with undisclosed profitability creates unclear ROI timeline
- 05HIGHGoing concern disclosure raises questions about franchisor financial stability and long-term support
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
50 numbers
One-time purchase · CSV download · Validation questions included
FDD download
BAD ASS COFFEE OF HAWAII · FDD (2025) PDF