Kahala Coffee Traders Franchise Cost, Revenue & Review 2026
- Investment
- $217K – $526K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Kahala Coffee Traders is a coffee franchise serving Hawaiian-inspired espresso drinks, specialty coffee, and light fare. Franchisees run the cafes, managing baristas, retail coffee, and counter service.
FranchiseVerdict summary · 2026
A Kahala Coffee Traders franchise requires a total initial investment of $217K – $526K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. 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: low - issued within the last 12 months
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 scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $217K – $526K
- 28th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 6
- 27th 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 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 $217K – $526K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed); 4 signed but not yet open (Item 20).
- LEGAL18 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 4 name the franchisor itself, 10 its parent, affiliates or predecessor, 1 an officer personally. Pending claims are allegations, not findings.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Kahala Franchising, L.L.C.
- Parent company
- Kahala Brands, Inc.
- FDD Item 1, page 7 of the 2026 FDD
- Ultimate parent
- MTY Food Group, Inc.
- FDD Item 1, page 7 of the 2026 FDD
- CEO title
- Chief Executive Officer
- Eric Lefebvre
- Incorporated in
- AZ
- HQ
- 9311 E. Via De Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $604.2M
- vs $597.5M prior year
Same owner · FDD Item 1, page 7
26 other brands on this site name MTY Food Group, Inc. as parent or ultimate parent in their own FDD.
- Barrio QueenC
- BlimpieD
- Chicken Strips and DipsD
- Cold Stone CreameryC
- Extreme PitaF
- Famous Dave’sB
- Ginger Sushi + Poke ShopC
- GrabbagreenC
- Great SteakC
- La DiperieB
- Manchu WOKB
- Maui WowiD
- Mucho BurritoB
- NrGize Lifestyle CafeB
- Papa Murphy'sA
- PinkberryB
- Planet SmoothieC
- Samurai Sam’s Teriyaki GrillB
- Sauce Pizza / WineD
- Surf City SqueezeD
- TacoTimeC
- Thai ExpressD
- Village InnD
- Wetzel’s PretzelsA
- +2 more
Portfolio: MTY Food Group · Kahala Brands
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2008
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 24% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Traditional) | $14K | $30K | |
| Lease Review Fee (Traditional) | $0 | $3K | |
| Rent/Security Deposit (3 months) (Traditional) | $6K | $20K | |
| Travel and Living Expenses while training (2 persons) (Traditional) | $3K | $5K | |
| Real Estate (Traditional) | — | — | |
| Architectural Fees (Traditional) | $10K | $21K | |
| Leasehold Improvements (Traditional) | $83K | $226K | |
| Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels (Traditional) | $64K | $132K | |
| Exterior Signage (Traditional) | $8K | $17K | |
| Computer Hardware, Software (POS System) (Traditional) | $3K | $10K | |
| PCI Compliance Costs (Traditional) | $150 | $1K | |
| Opening Inventory (food and paper) (Traditional) | $3K | $7K | |
| Business Insurance (Traditional) | $1K | $5K | |
| Miscellaneous Opening Costs (Traditional) | $5K | $17K | |
| Grand Opening Marketing (Traditional) | $10K | $10K | |
| Depository Account (Traditional) | $3K | $3K | |
| Additional Funds - 3 month initial period (Traditional) | $5K | $20K | |
| Total initial investment | $217K | $526K |
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
- $217K – $526K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $20K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $55 |
| Transfer fee | $8K |
| Renewal fee | $15K |
| Inventory (initial) | $3K – $7K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Kahala Coffee Traders makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Kahala Coffee Traders 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 annual revenue, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 7.0% (near the Quick-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
Net unit growth of +20.0% over 3 years (1 opened, 0 closed).
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 Kahala Coffee Traders 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- 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
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +20.0%
- Net unit change over 3 years
- 3-yr CAGR
- +20.0%
- 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
- 4
- 0.67 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $377K
- Median loan
- $377K
- 50th percentile
- Charge-off rate
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
A severely underdeveloped brand with chronic litigation exposure, zero financial transparency, minimal unit growth, and unprotected territory presents extreme execution risk and poor franchisor credibility.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Multiple concluded cases involving affiliates including franchise disputes, trademark infringement, financial performance misrepresentation (Papa Murphy's), and state administrative actions. Three current lawsuits filed by Kahala Franchising against franchisees for breach of contract and trademark infringement.
Largest disclosed settlement: $150,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited consolidated revenue of the franchisor's parent/guarantor MTY Franchising USA, Inc. for FY ended Nov 30, 2025 (and 2024). Reported in thousands of US dollars. Statements audited by PricewaterhouseCoopers LLP, dated Feb 5, 2026.
ⓘ 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 55 / 100 verdict
- 01MINORExtremely small and stagnant unit count (only 6 units with minimal 20% YoY growth from near-zero baseline)
- 02HIGHExtensive litigation history across multiple brands under same parent company, including registration violations and breach of contract cases in multiple states
- 03MEDNo disclosed average revenue or net income data (Item 19 absent), making ROI assessment impossible
- 04MINORHigh royalty burden structure ($300/week minimum = $15,600/year floor regardless of sales performance)
- 05MINORUnprotected territory creates direct competition risk from other franchisees and company-owned units
- 06HIGHParent company litigation involving predecessor brands (SweetFrog, Famous Dave's, Wetzel's, Papa Murphy's) indicates systemic compliance and operational issues
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail18 matters · Item 3
Litigation cases
The franchisor
Concluded (1)
KOHO, Inc. v. Kahala Franchising, L.L.C.
settledBrought by a franchisee · filed 2015 · Superior Court of the State of California for the County of Los Angeles · BC572565
“KOHO, Inc. v. Kahala Franchising, L.L.C.; Superior Court of the State of California for the County of Los Angeles; Case No.: BC572565. On or about February 17, 2015, Koho, Inc. (“Koho”) filed a Complaint against Kahala Franchising, L.L.C. (“Kahala”) alleging: (i) breach of contract; (ii) unjust enrichment; and (iii) declaratory relief.”Page 21 of the 2026 FDD, Item 3
Outcome:“On June 19, 2017, the parties entered into a settlement agreement whereby Kahala repurchased Koho’s Area Developer territory for the sum of $75,000 and forgave the remaining damages owed in the amount of $130,000.” (page 22)
Status not stated in the filing (3)
Kahala Franchising, L.L.C. v. Byron Washington and Bram Berg
Brought against a franchisee · United States District Court for the Southern District of New York · 1:25-cv-06392
“Kahala Franchising, L.L.C. v. Byron Washington and Bram Berg; United States District Court for the Southern District of New York; Case No.: 1:25-cv-06392.”Page 29 of the 2026 FDD, Item 3
Kahala Franchising, L.L.C. v. Golden Enterprises, Inc.; DBH Associates, LP, Deseret Sales, Inc., Randy Herzog, Laurie Herzog, Amy Wilson, Rob Wilson, Clare Hunter, Deobrah Hunter
Brought against a franchisee · United States District Court in and for the Eastern District of Washington · 2:25-cv-00426
“Suit for Breach of Contract Kahala Franchising, L.L.C. v. Golden Enterprises, Inc.; DBH Associates, LP, Deseret Sales, Inc., Randy Herzog, Laurie Herzog, Amy Wilson, Rob Wilson, Clare Hunter, Deobrah Hunter; United States District Court in and for the Eastern District of Washington; Case No.: 2:25-cv-00426.”Page 28 of the 2026 FDD, Item 3
Kahala Franchising, L.L.C. v. Mid Valley Foods, Inc., Candyce Dilbeck, Steve Hopkins, Gegory M. Hopkins
Brought against a franchisee · United States District Court in and for the District of Arizona · 2:25-cv-04166-KML
“Kahala Franchising, L.L.C. v. Mid Valley Foods, Inc., Candyce Dilbeck, Steve Hopkins, Gegory M. Hopkins; United States District Court in and for the District of Arizona; Case No.: 2:25-cv-04166-KML.”Page 28 of the 2026 FDD, Item 3
Parent, affiliates and predecessor
Concluded (10)
Pretzelsdallas1, Inc. v. Wetzel’s Pretzels, LLC
settledBrought by a franchisee · Wetzel’s Pretzels, L.L.C. · filed 2019 · American Arbitration Association (Los Angeles, California) · AAA Case No. 01-19-0002-9326
“On or about September 11, 2019, Pretzelsdallas1, Inc., (“Claimant/Counter Respondent”) a franchisee, filed a demand for arbitration against Wetzel’s Pretzels, L.L.C. (“Respondent/Counter Claimant”) with the American Arbitration Association in which it alleged claims for (i) recission and restitution for intentional misrepresentation, (ii)”Page 24 of the 2026 FDD, Item 3
Outcome:“On September 24, 2021, the parties entered into a settlement agreement, in which a mutual release of all claims was agreed to, and Respondent/Counter Claimant paid Claimant/Counter Respondent the sum of $125,000. The matter was subsequently dismissed with prejudice.”
Desert Ribs, L.L.C., Famous Gracie, L.L.C., Famous Freddie, L.L.C., Famous George, L.L.C. and Famous Charlie, L.L.C. v. Famous Dave’s of America, Inc.
settledBrought by a franchisee · Famous Dave’s of America, Inc. · filed 2016-03-14 · American Arbitration Association, Minneapolis, Minnesota · 01 16 0000 8549
“Desert Ribs, L.L.C., Famous Gracie, L.L.C., Famous Freddie, L.L.C., Famous George, L.L.C. and Famous Charlie, L.L.C. v. Famous Dave’s of America, Inc., American Arbitration Association, Minneapolis, Minnesota, Case No. 01 16 0000 8549.”Page 22 of the 2026 FDD, Item 3
Outcome:“On July 20, 2016, the arbitrators ruled in partial favor of the pre-hearing motion filed by Famous Dave’s by dismissing Claimants’ MFA claims against Famous Dave’s. Upon the dismissal of the MFA claims, Claimants voluntarily dismissed their remaining claims against Famous Dave’s and entered into a confidential settlement”
Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., EP Development, Inc., and Feisal Ramjee
settledBrought by a franchisee · The Extreme Pita Franchising USA, Inc. (predecessor in interest to affiliate MTY Franchising USA, Inc.), EP Development, Inc. and Feisal Ramjee · filed 2015-06-22 · Superior Court of the State of Washington for King County · 15-2-15120-7
“Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., EP Development, Inc., and Feisal Ramjee; Superior Court of the State of Washington for King County; Case No. 15-2-15120-7.”Page 21 of the 2026 FDD, Item 3
Outcome:“The parties entered into a settlement agreement on March 11, 2016, in which Defendants paid Plaintiffs the sum of $20,000. The matter was dismissed on March 16, 2016.”
DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, et al. v. Papa Murphy’s International LLC, et al.; consolidated with Mitch and Kristen Brink, Brink Holdings Inc., et al. v. Papa Murphy’s International LLC, et al.
settledBrought by a franchisee · Papa Murphy’s International LLC, with Papa Murphy’s Company Stores, Inc., PMI Holdings Inc., Papa Murphy’s Intermediate Inc., Papa Murphy’s Holdings, Inc., Lee Equity Partners LLC and named board memb · filed 2014 · Washington Superior Court, Clark County · 14-2-00904-0 (consolidated); 14-2-01743-3
“DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, Pizza Enterprises LLC, Alan and Denise Barnett, DOB Enterprises, Inc., Douglas and Lesia Billing, Rob & Bud's Pizza, Robert J. Dickerson Trust UA, Rob Dickerson, 4LM Enterprises, Inc., Jana and Randell Liles, Ben and Kim Mayfield, SEAMS Holdings LLC, Scott and Erica Shelby, Robert Hoersting, PM Savannah LLC,”Page 24 of the 2026 FDD, Item 3
Outcome:“Each of the plaintiff groups entered into settlements with Papa Murphy’s in which they dismissed all of their claims against defendants with prejudice and the action was dismissed in June 2020.” (page 25)
State of Maryland Determination
concludedGovernment or regulatory action · Triune, LLC (predecessor of BF Acquisition Holdings, L.L.C.) · filed 2012 · State of Maryland (Consent Order with the Office of the Attorney General of Maryland) · Case Number 2012-0073
“Concluded State Administrative Actions, Arbitration, and Litigation Involving BF Acquisition Holdings, L.L.C. and/or its predecessors State of Maryland Determination; Case Number 2012-0073.”Page 27 of the 2026 FDD, Item 3
Outcome:“Without admitting or denying the allegations, in September 2012, Triune voluntarily entered into a Consent Order with the Office of the Attorney General of Maryland and agreed to: (i) not violate the Maryland Law in the future; (ii) pay the Office of the Attorney General the sum of $50,000 as a civil penalty;” (page 28)
State of Virginia Determination
settledGovernment or regulatory action · Triune, LLC (predecessor of BF Acquisition Holdings, L.L.C.) · filed 2012 · Division of Securities and Retail Franchising of the State Corporation Commission (Virginia) · Case Number SEC-2012-00027
“State of Virginia Determination; Case Number SEC-2012-00027. In February 2012, the Division of Securities and Retail Franchising of the State Corporation Commission (the "Commission") alleged that during 2009 Triune, LLC (“Triune”): (i) offered or sold franchises in Virginia in 2009 that were not registered under the Virginia Retail Franchising Act”Page 28 of the 2026 FDD, Item 3
Outcome:“Without admitting or denying the allegations, on November 26, 2012, Triune voluntarily entered into a Settlement Order with the Commission and agreed: (i) to not violate the Virginia Act in the future; (ii) to pay Virginia the sum of $25,000 as a penalty and the sum of $5,000 to defray the Commission’s costs of investigation;”
New York Department of Law claim against Blimpie Associates, Ltd. and Joseph Dornbush (no case caption printed)
concludedGovernment or regulatory action · Blimpie Associates, Ltd. and Joseph Dornbush (formerly the President of Blimpie) · filed 1992 · New York Department of Law
“In May 1992, Blimpie Associates, Ltd. (“Blimpie”) and Joseph Dornbush (formerly the President of Blimpie) (collectively “Respondents”) responded to a claim by the New York Department of Law that it had sold franchises during a period of time when Blimpie’s prospectus had not been updated by amendment.”Page 26 of the 2026 FDD, Item 3
Outcome:“Without the admission of any wrongdoing, Respondents consented to the entry of an order in which Respondents agreed: (i) to entry of a judgment enjoining them from further violations of the New York Franchise Sales Act; and (ii) to pay the sum of $18,000 to the State of New York as an additional allowance.”
In the Matter of Maui Wowi Franchising, Inc.
concludedGovernment or regulatory action · Maui Wowi Franchising, Inc. (predecessor in interest to Kahala Franchising, L.L.C.) · Securities Commissioner of Maryland · Case No. 2005-0651
“On November 11, 2005, Maui Wowi Franchising, Inc., the predecessor franchisor of the Maui Wowi brand (“MWF”), entered into a Consent Order with the Securities Commissioner of Maryland (“Commissioner”) resulting from MWF inadvertently entering into four franchise agreements with Maryland residents after its registration in Maryland expired on June 9, 2004”Page 27 of the 2026 FDD, Item 3
Outcome:“At this time, MWF is in full compliance with the Consent Order.”
In the Matter of Maui Wowi Franchising, Inc. (No. Case No. 2007-0194)
concludedGovernment or regulatory action · Maui Wowi Franchising, Inc. (MWF) · Securities Commissioner of Maryland · Case No. 2007-0194
“On September 12, 2007, “MWF” entered into a Consent Order with the Maryland Commissioner resulting from MWF inadvertently entering into two franchise agreements with two Maryland residents (“Second Maryland Franchisees”) without delivering to them the appropriate Offering Circular.”Page 27 of the 2026 FDD, Item 3
Outcome:“to reimburse the Maryland Attorney General for its investigation and resolution costs in the total amount of $2,500.”
In the Matter of SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc., d/b/a Sweet Frog
concludedGovernment or regulatory action · SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc. (predecessor of affiliate SFF, L.L.C.) · Securities Commissioner of Maryland (Administrative Proceeding) · Case No. 2012-0055
“In the Matter of SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc., d/b/a Sweet Frog, Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2012-0055.”Page 26 of the 2026 FDD, Item 3
Outcome:“On August 29, 2012, the Commissioner and SFE agreed to enter into a consent order whereby SFE, without admitting or denying any violations of the law, agreed to: (i) immediately and permanently cease from the offer and sale of franchises in violation of the Maryland Franchise Law;”
Officers and directors (individuals, not the company)
Concluded (1)
In re: Restaurants Acquisition I, LLC (Giuliano vs. W. Craig Barber et. al.)
settledThird-party plaintiff · W. Craig Barber (Chief Executive Officer) and Robert Langford (Chief Concept Officer - Family Restaurant Division) · filed 2017-12-01 · United States Bankruptcy Court for the District of Delaware · Case No. 15-12406 (KG)
“On December 1, 2017, the Chapter 7 trustee in the Restaurants Acquisition I, LLC (“RAI”) bankruptcy proceeding filed suit in the United States Bankruptcy Court against our Chief Executive Officer W. Craig Barber, our Chief Concept Officer – Family Restaurant Division Robert Langford and companies owned jointly by them alleging avoidance, fraudulent transfer,”Page 24 of the 2026 FDD, Item 3
Outcome:“On March 6, 2019, Barber and Langford each settled with the Chapter 7 trustee by each agreeing to pay to the trustee and estate separate payments totaling $150,000 each over a three-year period.”
This list shows 15 of the 18 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 7.0% 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 | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Arbitration location | County and state where the Franchised Business is located |
| Jury trial waiver | Yes |
| Governing law | State where Franchised Business is located |
| Litigation count | 18 |
View Item 3 litigation summary
Multiple concluded cases involving affiliates including franchise disputes, trademark infringement, financial performance misrepresentation (Papa Murphy's), and state administrative actions. Three current lawsuits filed by Kahala Franchising against franchisees for breach of contract and trademark infringement.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 40 hrs
- Training location
- Online, KTEC in Scottsdale, AZ (classroom); franchisee's restaurant location (OJT)
- Ongoing training
- Optional
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor approves
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
8 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 Kahala Coffee Traders franchise?
The total investment to open a Kahala Coffee Traders franchise ranges from $217K – $526K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Kahala Coffee Traders franchise owners earn?
Kahala Coffee Traders makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Kahala Coffee Traders?
Kahala Coffee Traders is franchised by Kahala Franchising, L.L.C.. Its parent company is Kahala Brands, Inc.. The ultimate parent named in the FDD is MTY Food Group, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Kahala Coffee Traders 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 Kahala Coffee Traders FDD and qualifies whose outlets they describe.
What is Kahala Coffee Traders's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Kahala Coffee Traders (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 Kahala Coffee Traders franchise locations are there?
As of their most recent FDD filing, Kahala Coffee Traders has 6 total units in the United States, including 6 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Kahala Coffee Traders a good franchise to buy?
FranchiseVerdict rates Kahala Coffee Traders as a B-grade franchise with a verdict score of 55 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.
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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.