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Kahala Coffee Traders Franchise Cost, Revenue & Review 2026

Quick-Service RestaurantsAZFranchising since 2011
BAbove averageAbove average55/100Editorial grade from public filings; not investment advice.
Investment
$217K – $526K
Disclosed sales
not disclosed
SBA charge-off
Under 10 loans (1)

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-01388FDD 2026Data QualityStandard76%
Manager-run OKNo: No territory protection

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

Total Investment
$217K – $526K
Median $486K
below median ↓, better than category
Franchise Fee
$30K – $30K
Median $35K
below median ↓, better than category
Liquid Capital Req'd
$5K – $20K
Median $33K
below median ↓, better than category
Avg Revenue
Not disclosed
Franchisor makes none
Royalty Rate
6.0%
Median 5.5%
near median
Ongoing Fees
7.0% of rev
Median 7.5%
near median
SBA Charge-Off Rate
Under 10 loans (1)
Insufficient SBA coverage: 1 loan, rate hidden below 10
System Size
6 units
Median 18 units
below median ↓, worse than category
Turnover Rate
N/A
Median 0.0%
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Optional
Can hire a manager
Litigation
18 cases
Review carefully

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.

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.

Total investment (Item 7)$217K – $526KCited, not corroborated — printed on page 37 of the 2026 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$30,000Verified — printed on page 29 of the 2026 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty6.0%Not cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Ad fund1.0%Cited, not corroborated — printed on page 31 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$5K – $20K

Source: FDD 2026 · Items 5–7

Full Item 7 breakdown17 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
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

Kahala Coffee Traders: Item 6 recurring fees
FeeAmount
Royalty6.0% of gross sales
Marketing / ad fund1.0% of gross sales
Technology fee$55
Transfer fee$8K
Renewal fee$15K
Inventory (initial)$3K – $7K
Total fee load7.0% of rev
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

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?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

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.

Total invested capital · what you put in to openFDD
FDD Item 7: $217K–$526K (midpoint used)
FDD reports $5K–$20K

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.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$384K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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.

Showing the headline figures — all 152 extracted fields are in the Full FDD Report · $19 →

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

Metric
Kahala Coffee Traders
Category median
vs median
Investment
$371K
$486Kmiddle half $342K–$748K · n=780
Below median, better than category
Revenue
N/A
$975Kmiddle half $664K–$1.4M · n=284
N/A
Unit Count
6
18middle half 5–79 · n=755
Below median, worse than category

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?

Total units6Cited, not corroborated — printed on page 74 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
3-yr growth+20.0% (favorable vs category)

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
2023
5
Franchised units
2024
5±0
Franchised units
2025
6+1
Franchised units

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?

SBA charge-offUnder 10 loans (1)
Verdict score55/100 (higher is better)
Litigation18 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average55Verdict score 55/100

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.

Moderate confidence±13 pts
4268

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)

Yr 1: $604.2MYr 2: $597.5MNon-royalty: $5.9M

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

  1. 01MINORExtremely small and stagnant unit count (only 6 units with minimal 20% YoY growth from near-zero baseline)
  2. 02HIGHExtensive litigation history across multiple brands under same parent company, including registration violations and breach of contract cases in multiple states
  3. 03MEDNo disclosed average revenue or net income data (Item 19 absent), making ROI assessment impossible
  4. 04MINORHigh royalty burden structure ($300/week minimum = $15,600/year floor regardless of sales performance)
  5. 05MINORUnprotected territory creates direct competition risk from other franchisees and company-owned units
  6. 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

Showing the headline figures — all 152 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail18 matters · Item 3

Litigation cases

The franchisor

Concluded (1)

  • KOHO, Inc. v. Kahala Franchising, L.L.C.

    settled

    Brought 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

    settled

    Brought 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.

    settled

    Brought 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

    settled

    Brought 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.

    settled

    Brought 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

    concluded

    Government 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

    settled

    Government 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)

    concluded

    Government 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.

    concluded

    Government 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)

    concluded

    Government 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

    concluded

    Government 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.)

    settled

    Third-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.

Initial term10 yrs
Renewal term5 yrs
TerritoryNone (caution)
Initial training80 hrs

Source: FDD 2026 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term5 years
Allowed renewalsℹ1
Territory typeNo territory protection
Protected territoryNo
Exclusive territoryℹNo
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ10 mi
Right of first refusalℹYes
Transfer requires consentYes
Termination notice14 days
Mandatory arbitrationYes
Arbitration locationCounty and state where the Franchised Business is located
Jury trial waiverYes
Governing lawState where Franchised Business is located
Litigation count18
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

✓Site selection assistance
✓Grand opening support
✓Lease negotiation help

Item 20 · call current owners

Franchisee Contacts

8 owners to call

Name · phone · city · state. Extracted from FDD Item 20

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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.

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.