Delah Coffee Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Delah Coffee is a coffee franchise serving traditional Yemeni coffee, teas, and cakes for dine-in, carryout, and delivery. Franchisees run the cafes, managing baristas, food, and counter service.
FranchiseVerdict summary · 2026
A Delah Coffee franchise requires a total initial investment of $337K – $494K, including a $35K franchise fee and an ongoing 4.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $337K – $494K
- 56th pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 4.5%
- 10th pct Service Resta…
- Units
- 4
- 19th 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 avg · 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 $337K – $494K including a $35K franchise fee, 4.5% ongoing royalty.
- RETURNSItem 19 figures for company-owned outlets are Total Gross Sales less Food Cost, Paper Goods Cost, and Direct Labor Cost (Direct Gross Profit), further reduced by select Disclosed Expenses (rent, credit card fees, utilities, marketing) and select Franchise Related Expenses (royalty, brand fund, tech fee, local marketing) -- this bottom figure is NOT a full net income and was not used for avg_net_income. No Franchise Outlet financial data was disclosed (no Operational Franchise Outlets existed during 2025).
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- DATAItem 19 reports individual actual results company owned only rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Delah Coffee Franchising, LLC
- CEO title
- Chief Executive Officer
- Majed Jahamee
- Incorporated in
- California
- HQ
- 7075 Commerce Circle, Pleasanton, California 94588
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Affiliated brands
- supplies coffees
- is the owner of the Licensed Marks
- maintains a pr
- Delah Wholesale
- Delah Coffee IP
- has not in the past and does not now offer franchises in any line of business
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Majed Jahamee
- Headquarters
- California
- Founded
- 2024
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 37% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Construction and Leasehold Improvements | $110K | $175K | |
| Lease Deposits and Rent - Three Months | $8K | $16K | |
| Furniture, Fixtures and Equipment | $65K | $95K | |
| Signage | $5K | $12K | |
| Computer, Software, and Point of Sale System | $3K | $4K | |
| Grand Opening Marketing | $2K | $3K | |
| Initial Inventory | $15K | $20K | |
| Utility Deposits | $1K | $2K | |
| Insurance Deposits - Three Months | $2K | $5K | |
| Travel for Initial Training | $3K | $6K | |
| Professional Fees | $19K | $30K | |
| General Licenses and Permits | $1K | $3K | |
| Additional Funds - Three Months | $15K | $20K | |
| Total initial investment | $282K | $424K |
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
- $337K – $494K
- Middle of category vs category
- Liquid capital req'd
- $15K – $20K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 4.5%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $15K – $20K |
| Total fee load | 6.5% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Delah Coffee did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Delah Coffee unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
27%
Below the 30–60% attractive-franchise band
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 figures for company-owned outlets are Total Gross Sales less Food Cost, Paper Goods Cost, and Direct Labor Cost (Direct Gross Profit), further reduced by select Disclosed Expenses (rent, credit card fees, utilities, marketing) and select Franchise Related Expenses (royalty, brand fund, tech fee, local marketing) -- this bottom figure is NOT a full net income and was not used for avg_net_income. No Franchise Outlet financial data was disclosed (no Operational Franchise Outlets existed during 2025).
Company-owned outlets only - not franchisee performance
- Item 19 type
- individual actual results company owned only
- Sample size
- 3
- vs category median 20 · small
- Range (low → high)
- $793K→$1.1M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 782 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 6.5% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Item 19 reports individual actual results company owned only rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How Delah Coffee Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 1
- 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
- 33.3%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 9
- Franchisor's next-year forecast
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Delah Coffee presents caution-level risk due to minimal unit count, unverified financial claims, absence of going concern status, and insufficient franchisee validation data in an oversaturated coffee market.
Litigation (Item 3)
Illinois Attorney General action alleging sale of a franchise to an Illinois resident without required state registration; resolved by Assurance of Voluntary Compliance with a $2,000 administrative penalty and rescission offer (Sept 2025).
Largest disclosed settlement: $2,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
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 35 / 100 verdict
- 01MEDOnly 4 units systemwide indicates extremely limited franchisee base and unproven scalability
- 02MEDNo Item 19 financial performance representations disclosed despite $185,780 avg net income claim — unable to verify
- 03HIGHGoing Concern = False suggests franchisor may lack financial stability or track record to support franchisee success
- 04MINORUnknown growth trajectory with only 4 units raises questions about market demand and unit retention
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% 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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Territory population | 30,000 |
| 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 |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Alameda County, California (or nearest suitable location to franchisor's HQ) |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
Illinois Attorney General action alleging sale of a franchise to an Illinois resident without required state registration; resolved by Assurance of Voluntary Compliance with a $2,000 administrative penalty and rescission offer (Sept 2025).
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 73 hrs
- Training location
- Pleasanton, California and San Francisco, California
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Delah Coffee franchise?
The total investment to open a Delah Coffee franchise ranges from $337K – $494K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Delah Coffee franchise owners earn?
Delah Coffee does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Delah 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 Delah Coffee FDD and qualifies whose outlets they describe.
What is Delah Coffee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Delah 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 Delah Coffee franchise locations are there?
As of their most recent FDD filing, Delah Coffee has 4 total units in the United States, including 0 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is Delah Coffee a good franchise to buy?
FranchiseVerdict rates Delah Coffee as a D-grade franchise with a verdict score of 35 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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 Delah 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.