Matari Coffee Franchise Cost, Revenue & Review 2026
Formerly known as HQ Matari
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Matari Coffee is a coffee franchise serving premium Yemeni coffee, espresso drinks, and specialty beverages. Franchisees run the cafes, managing baristas, retail, and counter service.
FranchiseVerdict summary · 2026
A Matari Coffee franchise requires a total initial investment of $469K – $721K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $469K – $721K
- 74th pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 4
- 19th 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 $469K – $721K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 21 states HQ Matari, LLC was formed June 30, 2024 and has not been in business three years, so no audited financial statements are included. Exhibit B contains an unaudited balance sheet as of March 30, 2025 only (no income statement); no revenue figures are disclosed.
- RISKVerdict F (Weakest tier), verdict score 28/100 (higher is better).
- DATAItem 19 reports gross sales plus cost breakdown rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- HQ Matari, LLC
- CEO title
- Founder, Chief Executive Officer and Member
- Sadeq Almatari
- Incorporated in
- MI
- HQ
- 9316 Harrison Rd., Romulus, Michigan 48174
Affiliated brands
- provides the distribution of inventory
- Matari Coffee Co
- maintains a pr
- Matari Distribution
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Sadeq Almatari
- Headquarters
- MI
- Founded
- 2024
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 10% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $409K | $641K |
| Total initial investment | $469K | $721K |
Source: Matari Coffee 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $469K – $721K
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $40K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $15K – $30K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Matari Coffee 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 Matari Coffee unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
18%
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: 2025 FDD
Financial Performance
Item 21 states HQ Matari, LLC was formed June 30, 2024 and has not been in business three years, so no audited financial statements are included. Exhibit B contains an unaudited balance sheet as of March 30, 2025 only (no income statement); no revenue figures are disclosed.
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
Item 19 reports gross sales plus cost breakdown rather than annual gross sales, so unit revenue is not directly comparable.
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 Matari Coffee Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 1
- 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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 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.
3
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.
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
Critical early-stage franchise with undisclosed profitability, corporate going concern issues, and insufficient unit density to validate business model—extremely high failure risk.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $110,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
No audited financials on file
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 28 / 100 verdict
- 01MEDOnly 2 operating units indicates extremely limited system validation and viability
- 02HIGHGoing Concern = False suggests serious financial/operational distress at corporate level
- 03MEDNet Income not disclosed prevents ROI validation; cannot verify if $992,628 revenue translates to profit
- 04MINORHigh initial investment ($468.5K-$721K) with minimal proven unit economics creates asymmetric risk
- 05MINORUnclear unit growth trajectory with only 2 locations raises questions about franchisee demand and support capability
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 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Oakland County, Michigan (Franchise Agreement); Wayne County, Michigan (Multi-Unit Development Agreement) |
| Jury trial waiver | Yes |
| Governing law | MI |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 36 hrs
- Training location
- Canton, Michigan, or other location determined by franchisor
- Ongoing training
- Required
- Site selection
- Franchisee selects; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- Clover
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Matari Coffee · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Matari Coffee franchise?
The total investment to open a Matari Coffee franchise ranges from $469K – $721K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Matari Coffee franchise owners earn?
Matari Coffee 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 Matari Coffee 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 Matari Coffee FDD and qualifies whose outlets they describe.
What is Matari Coffee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Matari 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 Matari Coffee franchise locations are there?
As of their most recent FDD filing, Matari Coffee has 4 total units in the United States, including 0 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is Matari Coffee a good franchise to buy?
FranchiseVerdict rates Matari Coffee as a F-grade franchise with a verdict score of 28 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?
If you represent Matari Coffee, you can request corrections or provide updated information.
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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.