FranchiseVerdict
Qamaria Yemeni Coffee Co. logo
FV-02076·MODERATEExcellent86

Qamaria Yemeni Coffee Co.

Food & Beverage - Coffee & TeaFranchising since 2021Website
Investment
$292K – $408K
56th pct Coffee & Tea
Avg revenue
$1.0M
31st pct Coffee & Tea
Royalty
5.0%
17th pct Coffee & Tea
Units
27
67th pct Coffee & Tea
SBA default

Bottom line

  • Total investment $292K – $408K including a $40K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $1.0M/year (median $981K).
  • Rated MODERATE with a risk score of 60/100.
  • System growing at 700.0% CAGR over 3 years with 27 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Qamaria Yemeni Coffee Franchise, LLC
Incorporated in
Michigan
HQ
1468 John A. Papalas, Lincoln Park, MI 48146
Auditor
Schultz & Associates, PLC
Audited financials
Franchisor revenue
$621K
vs $1.2M prior year

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 Qamaria Yemeni Coffee Co. unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,018,821
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $292K–$408K
Working capital
$
FDD reports $10K–$20K

Unlevered ROIC · per unit

31%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$112K
EBITDA margin
11.0%
Total invested
$365K
Payback
39 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Qamaria Yemeni Coffee Co. units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$815K

on $4.1M purchase

Total debt

$3.3M

SBA $2.0M + senior + seller note

Overview

About

Franchisees operate specialty Yemeni coffee retail locations, likely emphasizing traditional brewing methods, authentic sourcing, and cafe-style service. Day-to-day operations include inventory management of premium coffee beans, customer-facing beverage preparation, point-of-sale management, and maintaining brand consistency across the growing chain.

Founded
2021
FDD year
2025
States available
9

Item 7 · what it costs

The Vitals

Total investment
$292K – $408K
All-in to open one unit
Liquid capital
$10K – $20K
Cash you must have on hand
Franchise fee
$40K
Royalty
5.0%
Gross Revenues · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$1.0M
Per unit, per year
Median gross sales
$981K
Item 19 type
Actual Gross Sales
Sample size
13 units
vs category median 13
Range (low → high)
$331K$2.0M
Cohort dispersion
Transparency
4 / 5
vs category median 2 / 5 · above
Revenue rank31th
vs Food & Beverage - Coffee & Tea peers
Investment cost rank56th
Lower investment ranks lower (better)
Royalty rate rank17th
Lower royalty = lower percentile (better)
Unit count rank67th
vs Food & Beverage - Coffee & Tea peers
Risk score rank34th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
27
Opened
14
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
3
Corporate units in the system
% franchised
89%
vs corporate-owned
Multi-unit owners
44.4%
Net growth (yr3)
+140.0%
Net unit change last year
3-yr CAGR
Outlier (see FDD)
Likely small-sample artifact
2023
24+14
Franchised units
2024
10
Franchised units
2025
3
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 13 states
Not registered

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

60
Risk · 0-100
MODERATE60 / 100

Rapid expansion with missing financial disclosures and uncertain franchisor stability creates material risk despite protected territory and no litigation.

Score breakdown · what drove the 60 / 100 rating

  1. 01HIGHGoing Concern status is FALSE — suggests potential financial instability or undisclosed material weaknesses in the franchisor
  2. 02MEDNet Income not disclosed — inability to verify actual profitability despite $1.02M average revenue; franchisees cannot validate unit economics
  3. 03MINORAggressive unit growth (140% YoY) with only 27 units — expansion may be outpacing operational support capacity and masking underlying unit quality issues
  4. 04MEDHigh investment ceiling ($408K) relative to disclosed average revenue and missing net income data creates opacity around ROI timeline
  5. 05MINOR5% royalty on gross revenues (not net) — franchisees pay on top-line even during losses or low-margin periods

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Michigan

Item 11

Training & Operations

Classroom training
9 hrs
On-the-job training
43 hrs

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

34 numbers

Locked
(248) 242-••••
MI
(248) 956-••••
MI
(248) 773-••••
MI

One-time purchase · CSV download · Validation questions included

FDD download

Qamaria Yemeni Coffee Co. · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above