Shaghf CafeFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Shaghf Cafe franchise requires a total initial investment of $240K – $696K, including a $125K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $240K – $696K
- 43rd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 7
- 29th pct Service Resta…
- SBA default
- N/A
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 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $240K – $696K including a $125K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 63/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Shaghf Cafe Franchise LLC
- Incorporated in
- PA
- HQ
- 3 Khorfakkan Road, Ground Floor, Al Fujairah, United Arab Emirates
- Auditor
- CPA Auditor, Inc.
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Affiliated brands
- Shaghf Cafe
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Shaghf Cafe franchisees operate a specialty café concept, likely serving regional or culturally-specific beverages and food items. Day-to-day operations include managing point-of-sale systems, inventory, staff scheduling, food/beverage preparation, and customer service in a quick-service or fast-casual format.
- CEO
- Hamad Khalfan Ali Al-Shareif Aal AlShareif
- Founded
- 2025
- FDD year
- 2025
- States available
- 7
FDD Item 7 · 2025 filing · 11 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
- Near category avg vs category
- Liquid capital req'd
- $25K – $50K
- Near category avg vs category
- Franchise fee
- $125K – $500K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Receipts · 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% of gross sales |
| Transfer fee | $10K |
| Total fee load | 5.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Shaghf Cafe Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 6
- Last reporting year
- Closed
- 1
- Turnover rate
- 14.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Shaghf Cafe presents high caution risk due to aggressive undisclosed growth, missing financial metrics, and franchisor going concern issues that prevent independent validation of profitability claims.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CPA Auditor, Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 63 / 100 rating
- 01MEDNo Item 19 financial disclosure (average revenue and net income not disclosed) - impossible to validate ROI claims
- 02HIGHGoing Concern status is False, indicating potential financial instability at franchisor level
- 03MINORExtremely aggressive unit growth (250% YoY) with only 7 total units suggests unsustainable expansion or unreliable data
- 04MINORWide investment range ($240K-$696K) without corresponding revenue disclosure creates opacity on unit economics
- 05MINORZero franchise fee is unusual and may indicate difficulty attracting franchisees or cash flow problems at corporate
- 06HIGHNo litigation disclosed but rapid growth + financial opacity increases legal risk exposure
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 | 15 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | No |
| 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 |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 77 hrs
- On-the-job training
- 82 hrs
- Training location
- On-site and corporate
- 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
22 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Shaghf Cafe · FDD (2025) PDF
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).
What do Shaghf Cafe franchise owners earn?
Shaghf Cafe does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 0 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is Shaghf Cafe a good franchise to buy?
FranchiseVerdict rates Shaghf Cafe as a C-grade franchise with a risk score of 63 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.