Bad Ass Coffee Of Hawaii Franchise Cost, Revenue & Review 2026
- Investment
- $526K – $992K
- Disclosed sales
- $665K
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 10 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Bad Ass Coffee of Hawaii is a coffee franchise serving Hawaiian-sourced coffee, espresso drinks, and island-themed treats. Franchisees run the cafes, managing baristas, retail coffee, and counter service.
FranchiseVerdict summary · 2026
A BAD ASS COFFEE OF HAWAII franchise requires a total initial investment of $526K – $992K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $665K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ 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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $526K – $992K
- 78th pct Service Resta…
- Avg gross sales
- $665K
- Net sales9th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 33
- 58th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
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 $526K – $992K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $665K/year (median $519K).
- RISKVerdict B (Above average), verdict score 64/100 (higher is better). SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +2 franchised outlets in the latest year (3 opened, 1 closed); 26 signed but not yet open (Item 20).
- GROWTHSystem growing at 28.0% CAGR over 3 years with 33 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Royal Aloha Franchise Company, LLC
- Parent company
- Royal Aloha Coffee Company, LLC
- FDD Item 1, page 7 of the 2025 FDD
- Predecessor
- Bad Ass Coffee Company of Hawaii, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Scott Snyder
- Incorporated in
- CO
- HQ
- 7347 South Revere Parkway, Building A, Suite A, Centennial, CO 80112
- Auditor
- The Adams Group, LLC
- Audited financials
- Franchisor revenue
- $2.9M
- vs $2.3M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- company
- Enterprises
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Scott Snyder
- Headquarters
- CO
- Founded
- 2019
- FDD year
- 2025
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 56% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Development Feenot refundable | $100K | $100K | |
| Architectural Servicesnot refundable | $18K | $30K | |
| Shop Opening Assistance Feenot refundable | $7K | $7K | |
| Building and Tenant Improvementsnot refundable | $170K | $530K | |
| Equipment and Furnishingsnot refundable | $152K | $220K | |
| Signsnot refundable | $9K | $25K | |
| Point-of-Sale System, Software and Office Equipmentnot refundable | $1K | $5K | |
| Opening Inventorynot refundable | $15K | $15K | |
| Security Deposits, Utility Deposits, Business Licensesnot refundable | $5K | $10K | |
| Grand Opening Marketing Campaignnot refundable | $15K | $15K | |
| Initial Training: Travel and Living Expensesnot refundable | $4K | $6K | |
| Additional Funds - 3 Monthsnot refundable | $30K | $30K | |
| Total initial investment | $526K | $992K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $526K – $992K
- Bottom third — review vs category
- Liquid capital req'd
- $30K – $30K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of net sales |
| Marketing / ad fund | 2.0% of net sales |
| Technology fee | $499 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $15K – $15K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 32% below the quick-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for BAD ASS COFFEE OF HAWAII until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$789K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one BAD ASS COFFEE OF HAWAII 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $665K
- Per unit, per year
- Median gross sales
- $519K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net sales
- Sample size
- 29 outlets
- vs category median 19
- Range (low → high)
- $286K→$1.7MCited, not corroborated — printed on page 41 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $665K/year in gross sales. Median is $519K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 28.0% CAGR over 3 years across 33 units — operators are staying and new ones are joining.
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 Bad Ass Coffee Of Hawaii 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 33
- Opened
- 3
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- +28.0%
- Net unit change over 3 years
- 3-yr CAGR
- +28.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 26
- 0.79 per open outlet · Item 20 Table 5
- Projected new
- 10
- Franchisor's next-year forecast
- Termination rate
- 3.1%
- Franchisor-initiated terminations
- Ceased ops
- 3.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 13 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.
13
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $6.0M
- Median loan
- $491K
- 50th percentile
- Charge-off rate
- 0.0%
- on 10 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 0
- Typical loan rate
- 8.9%
- avg rate to borrowers
- Franchised industry avg
- 10.6%
- brand beats franchise avg ↓
- Jobs supported
- 115
- 1.9 per loan
- Lender concentration
- 20%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in snack and nonalcoholic beverage bars, franchised businesses charge off at 10.6% vs 8.9% for independents — franchising is associated with 19% higher SBA default risk in this category.
Top lenders financing Bad Ass Coffee Of Hawaii franchisees
Showing 3 of 8 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Bad Ass Coffee Of Hawaii from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 8.88%
- Lender concentration
- 20.0%
- Job velocity
- 1.9 per $100K
- NAICS benchmark
- 7.0%
- NAICS 722515
- Jobs supported
- 115
Top SBA lendersTop lender holds 20% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Third Coast Bank | 2 | $1.5M | N/A |
| 2 | The Huntington National Bank | 2 | $550K | N/A |
| 3 | Newtek Small Business Finance, Inc. | 1 | $170K | 0.0% |
| 4 | Merchants Bank of Indiana | 1 | $460K | N/A |
| 5 | The Bancorp Bank National Association | 1 | $791K | N/A |
| 6 | First Savings Bank | 1 | $1.5M | N/A |
| 7 | Cadence Bank | 1 | $453K | 0.0% |
| 8 | Valley National Bank | 1 | $482K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| SCSouth Carolina | 3 | 0 | -- |
| FLFlorida | 2 | 0 | -- |
| TXTexas | 2 | 0 | -- |
| CACalifornia | 1 | 0 | 0.0% |
| MNMinnesota | 1 | 0 | 0.0% |
| VAVirginia | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Two predecessor litigation cases disclosed: (1) Naughty Donkey Enterprises v. Bad Ass Coffee Company of Hawaii (2009, Alabama) - settled 2019 with payment of $162,066 judgment; (2) Bad Ass Coffee v. Royal Aloha International (2013, Utah) - settled with $75,000 payment, Satisfaction of Judgment entered March 2021
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · The Adams Group, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated total income FY2024 comprises royalty fees $1,007,732, royalty fees-related party $56,466, franchise fees and other $1,422,919, advertising fund contributions $409,611, and other income $6,443. Franchisor reported a net loss; member's equity $468,713 reflects member contributions of $738,031 in 2024.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 64 / 100 verdict
- 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
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | Colorado |
| Jury trial waiver | No |
| Governing law | CO |
| Litigation count | 2 |
View Item 3 litigation summary
Two predecessor litigation cases disclosed: (1) Naughty Donkey Enterprises v. Bad Ass Coffee Company of Hawaii (2009, Alabama) - settled 2019 with payment of $162,066 judgment; (2) Bad Ass Coffee v. Royal Aloha International (2013, Utah) - settled with $75,000 payment, Satisfaction of Judgment entered March 2021
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 50 hrs
- Training location
- Centennial, CO (classroom); Denver, CO area shop (OJT)
- Ongoing training
- Required
- Time to open
- 15 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
51 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BAD ASS COFFEE OF HAWAII franchise?
The total investment to open a BAD ASS COFFEE OF HAWAII franchise ranges from $526K – $992K, 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 BAD ASS COFFEE OF HAWAII franchise owners earn?
According to Item 19 of the BAD ASS COFFEE OF HAWAII FDD, the average gross sales per unit is $665K. The median is $519K. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns BAD ASS COFFEE OF HAWAII?
BAD ASS COFFEE OF HAWAII is franchised by Royal Aloha Franchise Company, LLC. Its parent company is Royal Aloha Coffee Company, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the BAD ASS COFFEE OF HAWAII 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 BAD ASS COFFEE OF HAWAII FDD and qualifies whose outlets they describe.
What is BAD ASS COFFEE OF HAWAII's franchise failure rate?
Based on SBA 7(a) loan data, BAD ASS COFFEE OF HAWAII has a charge-off rate of 0.0% across 10 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many BAD ASS COFFEE OF HAWAII franchise locations are there?
As of their most recent FDD filing, BAD ASS COFFEE OF HAWAII has 33 total units in the United States, including 32 franchised units and 1 company-owned units. 3 new units were opened in the latest reporting year.
Is BAD ASS COFFEE OF HAWAII a good franchise to buy?
FranchiseVerdict rates BAD ASS COFFEE OF HAWAII as a B-grade franchise with a verdict score of 64 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
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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.