Matari Coffee
Formerly known as HQ Matari
Bottom line
- Total investment $469K – $721K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $993K/year.
- Rated CAUTION with a risk score of 70/100.
- Emerging franchise — only 2 years of franchising with 2 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Matari Coffee unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Matari Coffee units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$794K
on $4.0M purchase
Total debt
$3.2M
SBA $2.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 70 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Matari Coffee · FDD (2025) PDF