Shaghf Cafe Franchise Cost, Revenue & Review 2026
- Investment
- $240K – $696K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Shaghf Cafe is a specialty coffee franchise serving premium coffee and innovative drinks in cozy cafe spaces. Franchisees run the cafes, managing baristas, retail, and counter service.
FranchiseVerdict summary · 2026
A Shaghf Cafe franchise requires a total initial investment of $240K – $696K, including a $125K – $500K franchise fee and an ongoing 5.0% royalty[2]. This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2025. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored2 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $240K – $696K
- 34th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 7
- 30th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $240K – $696K including a $125K franchise fee, 5.0% ongoing royalty. This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- GROWTHPositive: net +5 franchised outlets in the latest year (6 opened, 0 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Shaghf Cafe Franchise LLC
- CEO title
- Chief Executive Officer and Manager
- Hamad Khalfan Ali Al-Shareif Aal AlShareif
- Incorporated in
- Pennsylvania
- HQ
- 3 Khorfakkan Road, Ground Floor, Al Fujairah, United Arab Emirates
- Auditor
- CPA Auditor, Inc.
- Audited financials
Affiliated brands
- Shaghf Cafe
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Hamad Khalfan Ali Al-Shareif Aal AlShareif
- Founded
- 2025
- FDD year
- 2025
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost is about typical for a quick-service restaurants franchise (near the category median).
Source: FDD 2025 · Items 5–7
This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands.
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $125K | $500K | |
| Required Furniture, Fixtures, Equipment, for your Master Franchise Business office | $15K | $25K | |
| Rent (First three months)not refundable | $8K | $12K | |
| Rental Security Deposit | $5K | $8K | |
| Miscellaneous Deposits | $500 | $1K | |
| Build-Out | $20K | $30K | |
| Training Expenses | $9K | $15K | |
| Insurance | $3K | $5K | |
| Business advisors such as lawyers and accountants | $15K | $25K | |
| Vehicle(s) used in the business | $15K | $25K | |
| Additional Funds - 3 months | $25K | $50K | |
| Total initial investment | $240K | $696K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $240K – $696K
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $50K
- Middle of category vs category
- Franchise fee
- $125K – $500K
- Master/area fee
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 0.0% |
| Transfer fee | $10K |
| Total fee load | 5.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Shaghf Cafe makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Shaghf Cafe unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 5.0% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
Net unit growth of +250.0% over 3 years (6 opened, 0 closed).
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Shaghf Cafe Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
This page describes a MASTER franchise offering (Shaghf Cafe Franchise LLC's March 18, 2025 FDD, 'for prospective master franchisees'): the fee is a territory fee and Item 7 is the cost of a master franchisee's office, not a cafe. The counts are master franchise rights sold by the predecessor Shaghf Company - 7 at the end of 2024, 2 in 2023, 0 in 2022 - which the filing's own footnote says are not operating cafes; the franchisor's own outlet table is all zeros. Owner ruling R43 keeps the page as a master listing, labelled.
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 6
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 14.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 7 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
7
states with franchisees (per FDD Item 12)
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Pre-opening master franchise that began franchising in 2025 with zero revenue and a small net loss (-$1,750); positive net worth $208,202. No Item 19 disclosure and no operating history, so limited data available.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CPA Auditor, Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor reported no revenue for the period from inception (January 10, 2025) to May 31, 2025 per audited financial statements
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 39 / 100 verdict
- 01MINORPre-opening, no operating history
- 02MINORZero total revenue, net income -$1,750
- 03MINORNo Item 19 disclosure
- 04MINORPositive net worth $208,202
- 05MINORNew franchisor (2025)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory sizeℹ | One state or a sub-state territory (Exclusive Territory) |
| Online sales rights | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 11 |
| Mandatory arbitration | Yes |
| Arbitration location | Cook County, Illinois |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 77 hrs
- On-the-job training
- 82 hrs
- Training location
- On-site and corporate
- Ongoing training
- Optional
- Franchisor financing
- Offered
- Item 10
- POS system
- Clover
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover
Item 20 · call current owners
Franchisee Contacts
8 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Shaghf Cafe franchise?
The total investment to open a Shaghf Cafe franchise ranges from $240K – $696K, with an initial franchise fee of $125K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD). This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands.
What do Shaghf Cafe franchise owners earn?
Shaghf Cafe makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Shaghf Cafe?
Shaghf Cafe is franchised by Shaghf Cafe Franchise LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Shaghf Cafe FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Shaghf Cafe FDD and qualifies whose outlets they describe.
What is Shaghf Cafe's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Shaghf Cafe (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 Shaghf Cafe franchise locations are there?
As of their most recent FDD filing, Shaghf Cafe has 7 total units in the United States, including 7 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year. This page describes a MASTER franchise offering (Shaghf Cafe Franchise LLC's March 18, 2025 FDD, 'for prospective master franchisees'): the fee is a territory fee and Item 7 is the cost of a master franchisee's office, not a cafe. The counts are master franchise rights sold by the predecessor Shaghf Company - 7 at the end of 2024, 2 in 2023, 0 in 2022 - which the filing's own footnote says are not operating cafes; the franchisor's own outlet table is all zeros. Owner ruling R43 keeps the page as a master listing, labelled.
Is Shaghf Cafe a good franchise to buy?
FranchiseVerdict rates Shaghf Cafe as a C-grade franchise with a verdict score of 39 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
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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.