Qahwah House™
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).
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- 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
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 Qahwah House™ unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Qahwah House™ units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$768K
on $3.8M purchase
Total debt
$3.1M
SBA $1.9M + senior + seller note
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.
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 · 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 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.
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.
Score breakdown · what drove the 60 / 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
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
13 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Qahwah House™ · FDD (2025) PDF