Bottom line
- Total investment $282K – $424K including a $35K franchise fee, 4.5% ongoing royalty.
- Average unit revenue of $844K/year (median $835K). Estimated payback in 1.9 years.
- Rated MODERATE with a risk score of 63/100.
- 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
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 Delah Coffee unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Delah Coffee units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$760K
on $3.8M purchase
Total debt
$3.0M
SBA $1.9M + senior + seller note
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.
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 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)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 63 / 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
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Delah Coffee · FDD (2025) PDF