Matari CoffeeFranchise Cost, Revenue & Review 2026
Formerly known as HQ Matari
Data from FDD filing
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]. Per the 2025 FDD, average unit revenue was $993K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $469K – $721K
- 79th pct Service Resta…
- Avg gross sales
- $993K
- 35th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 2
- 10th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $469K – $721K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $993K/year.
- Verdict B (Above Average) with a risk score of 62/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- HQ Matari, LLC
- Incorporated in
- MI
- HQ
- 9316 Harrison Rd., Romulus, MI 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
Matari Coffee franchisees operate specialty coffee retail locations, likely featuring espresso-based beverages, specialty drinks, and related food items. Day-to-day operations include customer service, barista work, inventory management, and local marketing to drive the reported $992K average revenue.
- CEO
- Sadeq Almatari
- Headquarters
- MI
- Founded
- 2024
- FDD year
- 2025
- States available
- 3
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$149K
15.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $469K – $721K
- Below avg, review vs category
- Liquid capital req'd
- $20K – $40K
- Near category avg vs category
- Franchise fee
- $40K – $40K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Sales · 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 |
Financial Performance
- Avg gross sales
- $993K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate outlets
- Sample size
- 2 units
- vs category median 28 · small
- Range (low → high)
- $645K→$1.3M
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Matari Coffee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
No audited financials on file
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
Score breakdown · what drove the 62 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Territory population | 50,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 5 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| 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
- On-site and corporate
- Site selection
- joint
- POS system
- Clover
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover
Item 20 · call current owners
Franchisee Contacts
4 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?
According to Item 19 of the Matari Coffee FDD, the average gross sales per unit is $993K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 2 total units in the United States, including 0 franchised units and 2 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 B-grade franchise with a risk score of 62 out of 100, 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
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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.