Haraz Coffee House
Food & Beverage · Coffee & Beverage
- Active units
- 14
- Avg unit volume
- $850k
- Royalty
- 4.0%
Franchised, year-end 2024
of weekly Net Sales
About Haraz Coffee House
Haraz Coffee House is a pioneering brand in the specialty coffee industry, proudly highlighting the rich heritage of Yemeni coffee. Founded in 2018 by Hamzah Nasser, Haraz has quickly expanded to 17 locations across the United States, with plans to open 132 more, as well as enter the Canadian and Middle Eastern markets. Committed to delivering premium organic coffee—sourced directly from Yemeni farmers—Haraz aims to uplift local communities while ensuring the highest quality beans.
Their diverse menu includes not only traditional Yemeni coffee blends but also innovative offerings like the Yemeni Coffee School and refreshing drinks for warmer months. With a vision of creating a warm, inviting atmosphere, Haraz Coffee House combines a traditional coffee experience with modern nuances, catering to all occasions. Recognized in the top 10% of coffee brands worldwide, Haraz is more than a coffee shop; it’s a cultural experience that fosters community and connection, one remarkable cup at a time.
Key terms
- Franchise fee
$50k
- Multi-Unit additional units pricing
Initial franchise fee for each additional Cafe reduced to $45,000
- Brand fund
1.0% of Net Sales
- Local advertising
1.0% of Net Sales
- Footprint
1,800 – 2,500 sq ft
- Multi-Unit Development Fee (2 Cafes)
$73k
- Multi-Unit Development Fee (5 Cafes)
$140k
- Franchise Fee Balance (per additional Cafe under Multi-Unit)
$23k
- Veteran discount
5000.0% off franchise fee — $5,000 reduction for first unit for Veteran with an Honorable Discharge
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing).
Growth
- Total locations26
Franchised units open at year-end
- New openings18
Gross new units opened during the calendar year
- 1-year unit growth rate225.0%
Net unit growth versus prior year
- 3-year unit CAGR—
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio18.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$943k
Average gross sales of 11 franchised Cafes for fiscal year Aug 1, 2024–Jul 31, 2025 (12 months).
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$480k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open11 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate4.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio2.0×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 41 of 82 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.