Qahwah House™Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Qahwah House™ franchise requires a total initial investment of $573K – $939K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.3M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $573K – $939K
- 86th pct Service Resta…
- Avg gross sales
- $1.3M
- 42nd pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 22
- 48th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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.
Franchised units fell from 18 to 3 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $573K – $939K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.6M).
- Verdict A (Top Quintile) with a risk score of 24/100.
- System growing at 500.0% CAGR over 3 years with 22 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Qahwah House Franchisor, LLC
- Parent company
- Qahwah House Holdings, Inc.
- Incorporated in
- DE
- HQ
- 5320 Oakman Boulevard, Dearborn, MI 48126
- Auditor
- Boyum & Barenscheer PLLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Qahwah House franchisees operate specialty coffee or Middle Eastern beverage retail locations, focusing on premium coffee service, prepared beverages, and likely accompanying food items. Day-to-day operations include inventory management, barista/beverage preparation, customer service, point-of-sale transactions, and adherence to brand standards across a protected territory.
- CEO
- Ibrahim Alhasbani
- Headquarters
- MI
- Founded
- 2024
- FDD year
- 2025
- States available
- 9
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $20K | $30K |
| Equipment, build-out, other | $493K | $849K |
| Total initial investment | $573K | $939K |
Source: Qahwah House™ 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
$179K
14.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $573K – $939K
- Below avg, review vs category
- Liquid capital req'd
- $20K – $30K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Below avg, review vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $4K |
| Renewal fee | $25 |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.3M
- Per unit, per year
- Median gross sales
- $1.6M
- Item 19 type
- gross_sales
- Sample size
- 8 units
- vs category median 28 · small
- Range (low → high)
- $478K→$2.1M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Qahwah House™ Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- Opened
- 9
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Net growth (yr3)
- +100.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
- $550K
- Median loan
- $550K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
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
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Qahwah House™'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Qahwah House presents elevated risk due to undisclosed profitability, going concern issues, suspicious unit growth metrics, and inability to verify franchisee ROI on a half-million-dollar investment.
Audited financials (Item 21)
Yes · Boyum & Barenscheer PLLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 24 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates franchisor financial distress or structural issues
- 02MEDNet Income not disclosed in FDD Item 19 — impossible to validate profitability claims or ROI
- 03MEDHigh initial investment ($572.8K–$939.4K) with no disclosed profit data creates unfunded risk
- 04MINOR100% YoY unit growth (22 units) is suspiciously perfect — suggests either cherry-picked data or unreliable reporting
- 05MINOR6% royalty on $1.28M average revenue equals $76.8K annual franchisor fees — questions sustainability if units underperform
- 06MEDOnly 22 franchise units is a small system — limited peer support and higher franchisor dependency on each unit's success
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | ZIP Code |
| Protected territory | Yes |
| 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 |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 100 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
13 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Qahwah House™ · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Qahwah House™ franchise?
The total investment to open a Qahwah House™ franchise ranges from $573K – $939K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Qahwah House™ franchise owners earn?
According to Item 19 of the Qahwah House™ FDD, the average gross sales per unit is $1.3M. The median is $1.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Qahwah House™'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Qahwah House™ (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 Qahwah House™ franchise locations are there?
As of their most recent FDD filing, Qahwah House™ has 22 total units in the United States, including 18 franchised units and 4 company-owned units. 9 new units were opened in the latest reporting year.
Is Qahwah House™ a good franchise to buy?
FranchiseVerdict rates Qahwah House™ as a A-grade franchise with a risk score of 24 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.