Delah CoffeeFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Delah Coffee franchise requires a total initial investment of $282K – $424K, including a $35K franchise fee and an ongoing 4.5% royalty[2]. Per the 2025 FDD, average unit revenue was $849K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $282K – $424K
- 55th pct Service Resta…
- Avg gross sales
- $849K
- 27th pct Service Resta…
- Royalty
- 4.5%
- 12th pct Service Resta…
- Units
- 4
- 17th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
53% cash-on-cash return (based on Gross Margin). Above the 20% threshold most investors target.
Bottom line
- Total investment $282K – $424K including a $35K franchise fee, 4.5% ongoing royalty.
- Average unit revenue of $849K/year, with an estimated 53% cash-on-cash return (based on Gross Margin). Note: this is gross profit, not take-home income.
- Verdict A (Top Quintile) with a risk score of 51/100.
- Emerging franchise: only 1 year of franchising with 4 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Delah Coffee Franchising, LLC
- Incorporated in
- CA
- 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
Delah Coffee franchisees operate specialty coffee retail locations, likely focused on espresso-based beverages, coffee beverages, and related food items. Day-to-day operations involve inventory management, barista staffing, customer service, point-of-sale management, and adherence to brand standards across 4 locations.
- CEO
- Majed Jahamee
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 14 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$132K
15.5% margin
Unlevered ROIC
35%
EBITDA / total invested capital
Payback
34 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $282K – $424K
- Near category avg vs category
- Liquid capital req'd
- $15K – $20K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Near category avg vs category
- Royalty
- 4.5%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
- Payback period
- 1.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $849K
- Per unit, per year
- Median gross sales
- N/A
- Avg gross margin
- $186K
- Reported as Gross Margin in FDD Item 19
- Cash-on-cash
- 52.6%
- Based on Gross Margin / investment midpoint
- Item 19 type
- Historical (Company-owned)
- Sample size
- 3 units
- vs category median 28 · small
- Range (low → high)
- $557K→$1.1M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Delah Coffee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- 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 · 1 state 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.
1
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $35,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 51 / 100 rating
- 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
- 05MINORHigh initial investment ($282k-$424k) relative to franchise fee ($35k) creates significant franchisee leverage imbalance
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius/Population |
| Protected territory | Yes |
| Territory sizeℹ | 30,000 people |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 73 hrs
- Training location
- On-site and franchisor facilities
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Delah Coffee · FDD (2025) PDF
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 $282K – $424K, 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?
According to Item 19 of the Delah Coffee FDD, the average gross sales per unit is $849K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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.
Is Delah Coffee a good franchise to buy?
FranchiseVerdict rates Delah Coffee as a A-grade franchise with a risk score of 51 out of 100, 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
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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.