Kahala Coffee Traders Franchise Cost, Revenue & Review 2026
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. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $217K – $526K
- 29th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- 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 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 $217K – $526K including a $30K franchise fee.
- RETURNSAudited 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.
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- LEGAL10 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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.
- Ultimate parent
- MTY Food Group, Inc.
- 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
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 44% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown34 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 | |
| Initial Franchise Fee (Non-Traditional) | $4K | $8K | |
| Lease Review Fee (Non-Traditional) | $0 | $3K | |
| Rent/Security Deposit (3 months) (Non-Traditional) | $6K | $20K | |
| Total initial investment | $305K | $896K |
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
- Greater of 6% of weekly Gross Sales or $300 per week (tra…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| 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 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 Kahala Coffee Traders unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
29%
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
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.
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 average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Kahala Coffee Traders Compares
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
- 0.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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
- N/A
- limited sample (1 loan) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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)
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: $4,000,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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
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 | none |
| 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 | 10 |
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
FDD download
Kahala Coffee Traders · FDD (2026) PDF
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 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 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), 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?
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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.