FDD Analysis Report
Haraz Coffee House
HARAZ COFFEE HOUSE FRANCHISING, LLC
Key Metrics At-a-Glance
$29,500
$349,500 - $517,705
4%
of gross sales
1%
of gross sales
10 years
17 units
14 franchised, 3 company
$850,341
Item 19 data
Investment Analysis
Initial Investment Breakdown
The total initial investment ranges from $349,500 to $517,705.
| Expense Category | Low | High |
|---|---|---|
| Initial Franchise Fee | $29,500 | $29,500 |
| Training Expenses | $0 | $2,000 |
| Real Estate / Rent | $5,000 | $15,000 |
| Equipment & Fixtures | $80,000 | $120,000 |
| Signage | $7,000 | $13,000 |
| Initial Inventory | $20,000 | $35,000 |
| Insurance | $3,500 | $4,800 |
| Licenses & Permits | $2,000 | $3,000 |
| Professional Fees | $7,500 | $15,000 |
| Technology & Software | $1,000 | $1,500 |
| Initial Marketing/Advertising | $5,000 | $5,000 |
| Additional Funds (Working Capital) | $20,000 | $25,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $349,500 | $517,705 |
Ongoing Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Royalty | 4% of Gross Revenue | Tiered: 3% - 4% |
| Brand Fund | 1% of Gross Revenue | - |
Item 19: Financial Performance Representations
This franchisor provides financial performance representations.
Average Revenue
$850,341
Median Revenue
$747,955
Highest
—
Lowest
—
Data Notes:
- Units included: 1
System Health Analysis
Growth Trajectory
| Year | Start | End | Opened | Closed | Net | Growth |
|---|---|---|---|---|---|---|
| 2026 | 17 | 17 | +0 | -0 | +0 | +0.0% |
Risk Assessment
Items to Review
No notable items identified
Positive Indicators
Review FDD for positive factors
Due Diligence Recommendations
Contact 10-15 existing franchisees to gather operational and financial insights
Franchisee interviews are the most valuable source of information about day-to-day operations and realistic financial expectations.
Have a franchise attorney review the Franchise Agreement
Professional legal review can identify unfavorable terms and potential negotiation points.
Research local market conditions and competition
Understanding your specific market is essential for success, regardless of system-wide performance.
Download Complete FDD
Access the full Franchise Disclosure Document including all 23 items, exhibits, and financial statements.
Browse Similar Franchises
Learn More About FDDs
New to franchise investing? Our educational guides will help you understand what to look for in the Haraz Coffee House FDD.
FDD Item 19 Explained
Understanding financial performance representations
How to Analyze Item 19 Data
Calculate ROI, break-even, and evaluate earnings claims
The Ultimate Guide to FDDs
Learn how to read and analyze Franchise Disclosure Documents
Understanding Item 7: Initial Investment
How to evaluate franchise investment costs
About Haraz Coffee House Franchise
Haraz Coffee House is a franchise that offers entrepreneurs the opportunity to own and operate their own business within an established system. As of the 2026 Franchise Disclosure Document, the system has grown to 17 locations across the United States. This analysis provides prospective franchisees with key insights from the FDD to support informed investment decisions.
Haraz Coffee House Franchise Cost
The total initial investment required to open a Haraz Coffee House franchise ranges from $349,500 to $517,705. This investment includes the initial franchise fee of $29,500, along with expenses for real estate, equipment, inventory, training, and working capital to sustain operations during the initial period. Ongoing fees include a royalty fee of 4% of gross sales. Prospective franchisees should review Item 7 of the FDD for a complete breakdown of estimated initial investment costs.
Haraz Coffee House Item 19 Financial Performance
Haraz Coffee House provides financial performance representations in Item 19 of their Franchise Disclosure Document. According to the disclosed data, franchisees reported average gross revenue of $850,341. This transparency allows prospective franchisees to evaluate potential returns, though actual results will vary based on location, management, and market conditions. Review the complete Item 19 disclosure for detailed financial metrics and the specific criteria used in the analysis.
Haraz Coffee House Franchise Growth and System Health
The Haraz Coffee House franchise system has shown stable performance based on unit count data from Item 20 of the FDD. Prospective franchisees should examine the historical data on unit openings, closings, and transfers to understand the system's trajectory and identify any concerning trends.
Haraz Coffee House Franchise Investment Considerations
The Haraz Coffee House FDD contains important disclosures that prospective franchisees should carefully review before making an investment decision. Key factors to evaluate include the franchise fee structure, ongoing royalty requirements, territory rights, termination history, and franchisor support systems. Every franchise investment carries risk, and this analysis should be combined with professional legal and financial advice. Review the complete FDD and speak with current franchisees to gain a comprehensive understanding of the opportunity.
Due Diligence Recommendations for Haraz Coffee House
Before investing in a Haraz Coffee House franchise, prospective franchisees should:
- Contact multiple existing franchisees to gather operational and financial insights
- Have a franchise attorney review the Franchise Agreement and all exhibits
- Research local market conditions and competitive landscape
- Develop a detailed business plan with realistic financial projections
- Verify all information provided by the franchisor independently
Download the Haraz Coffee House FDD
Access the complete Haraz Coffee House Franchise Disclosure Document, including all 23 Items, exhibits, franchise agreement, and audited financial statements. FreeFDDs™ provides free access to FDDs to promote franchise transparency and help prospective franchisees make informed decisions. The FDD contains critical information that should be reviewed in its entirety before making any investment decision.
Disclaimer
This analysis report is provided for informational purposes only. The data presented has been extracted from the Franchise Disclosure Document and may contain errors or omissions.
Prospective franchisees should conduct their own due diligence, review the complete FDD document, and consult with qualified legal and financial advisors before making any investment decisions.