About Delah Coffee Franchise
Delah Coffee is a specialty coffee shop franchise offering traditional Yemeni coffee, teas, cakes, and a variety of other menu items.
The brand brings an authentic Yemeni coffee experience to the market, differentiating itself from conventional coffee chains with its focus on traditional brewing methods and culturally inspired offerings.
The franchise fee is $35,000, and the company began franchising in 2025.
Delah Coffee Franchise Cost & Fees
Minimum Investment
$282K
Average Investment
$353K
Maximum Investment
$424K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 4.5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales (Brand Development Fund, currently not assessed); 1% of Gross Sales (Franchisee Directed Local Marketing) | National brand fund |
| Total Investment Range | $282,300 – $424,000 | Includes build-out, inventory, working capital |
The investment range of $282K–$424K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4.5% of Gross Sales) and marketing fee (Up to 2% of Gross Sales (Brand Development Fund, currently not assessed); 1% of Gross Sales (Franchisee Directed Local Marketing)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Construction and Leasehold Improvements | $110,000 | $175,000 |
| Lease Deposits and Rent – Three Months | $8,000 | $16,000 |
| Furniture, Fixtures and Equipment | $65,000 | $95,000 |
| Signage | $4,500 | $12,000 |
| Computer, Software, and Point of Sale System | $3,000 | $3,500 |
| Grand Opening Marketing | $1,800 | $2,500 |
| Initial Inventory | $15,000 | $20,000 |
| Utility Deposits | $1,000 | $2,000 |
| Insurance Deposits – Three Months | $2,000 | $4,500 |
| Travel for Initial Training | $2,500 | $6,000 |
| Professional Fees | $18,500 | $30,000 |
| General Licenses and Permits | $1,000 | $2,500 |
| Additional Funds – Three Months | $15,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $5,000 |
| Technology Fee | Up to $500 per month, currently not assessed |
| Audit Fee | Cost of audit (if underreporting of 2% or greater) |
| Annual Conference Attendance Fee | Not greater than $1,500 |
| Additional Employee Initial Training | $300 per person per day |
| Supplemental On-Site Training | $300 per day plus expenses |
| Interest | 18% per annum from due date |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Quality Assurance Audit | Actual costs incurred or fees designated |
| Collections | Actual fees, costs, and expenses |
| NSF Check Fee or Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater |
| Non-Compliance | Actual fees, costs, and expenses |
| Supplier Evaluation | Actual fees, costs, and expenses |
| Management Service | Actual costs incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximate two-week period |
| Classroom Training | 7 |
| On-the-Job Training | 73 |
| Training Location | Pleasanton, California and San Francisco, California |
| Additional Training | Franchisor may require supplemental on-site training and participation in a System-Wide Training Program (not more than 5 days in any calendar year). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Smaller of five miles from the Shop Location in all directions travelable by road or a territory encompassing a population of 30,000 people |
| Description | The designated territory will generally be the smaller of a five-mile radius from the Shop Location or an area with a population of 30,000 people. For non-traditional or captive market locations (e.g., malls, airports), the territory may be limited to the physical boundaries of that facility. The franchisor identifies territories by zip code, boundary streets, highways, county lines, designated market area, or other recognizable demarcations. While not exclusive, the franchisor will not establish or grant another franchise for a Delah Coffee Shop within a franchisee's designated territory, excluding 'Closed Markets' (captive markets). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $5,000 |
| Renewal Conditions | To renew, franchisee must be in compliance with the franchise agreement, provide 180 days prior written notice, sign the then-current franchise agreement and related agreements, sign a general release, pay a renewal fee, remodel/upgrade the shop to current standards, secure legal right to occupy the premises, and meet all other renewal requirements. Owners and their spouses must also guarantee the new agreement. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Requires franchisor's prior written consent. Franchisee must provide 30 days notice, be in compliance with all agreements, satisfy all monetary obligations, and the transferee must meet franchisor's qualifications, agree to be bound by the current franchise agreement, complete training, and pay the transfer fee. Franchisee and owners must sign a general release. Franchisor has a right of first refusal. |
| Termination for Cause | Franchisor can terminate for various defaults, including failure to pay fees (10-day cure), failure to open on time, operational non-compliance, or material breaches (30-day cure). Certain defaults, such as repeated curable defaults, intentional non-compliance, abandonment, or bankruptcy, may result in immediate termination without a cure period. |
| Non-Compete Period | During the term and 24 months post-termination |
| Non-Compete Details | During the term, franchisee and owners cannot have any interest in, operate, manage, fund, or perform services for a competitive business, or divert customers. Post-termination, for 24 months, they cannot engage in any prohibited activities within the designated territory, a 25-mile radius around it, or a 10-mile radius of any other Delah Coffee Shop. Confidentiality, non-disclosure, and non-solicitation covenants also apply. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner (designated managing shareholder, member, or partner) is personally responsible for the management and overall supervision of the shop. While active day-to-day participation is recommended, an Operating Manager who meets franchisor criteria, completes training, and signs a confidentiality agreement may be hired to supervise on-site operations. Each multi-unit shop must have an Operating Manager. |
| Required Suppliers | Franchisee must purchase or lease certain source-restricted goods and services from approved or designated suppliers, which may include the franchisor or its affiliates. Specifically, Delah Wholesale, Inc. is an approved supplier for coffees, teas, branded cups, bags, sleeves, and other ingredients. Adenii Imports Inc. is an approved supplier for evaporated milk. Franchisees are also required to use a Toast point of sale system. |
| Supply Restrictions | Franchisee may only offer and sell Approved Products and Services and must use only products, supplies, equipment, technology systems, and services authorized and designated in writing by the franchisor. The franchisor may designate itself or a third party as the sole and exclusive supplier for certain items, regardless of competing suppliers. |
| Franchisor Revenue from Suppliers | Franchisor and affiliates may receive rebates/payments from suppliers, but as of the FDD issuance date, no revenue has been received from franchisee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or other obligation. |
Delah Coffee Franchise Earnings — Item 19
Average Revenue
$844K
Median Revenue
$835K
Revenue Range
$557K – $1.1M
Sample Size
3 units
Past financial performance does not guarantee future results. Individual results will vary.
Delah Coffee Litigation & Risk Flags
Clean Litigation RecordDelah Coffee has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Delah Coffee System Growth
Total Units
4
Franchised
0
Company-Owned
4
Delah Coffee currently operates 0 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 1 | 0 | 1 |
| 2023 | 2 | 0 | 3 |
| 2024 | 1 | 0 | 4 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 23 states: CA, CT, FL, HI, IL, IN, KY, ME, MD, MI, MN, NE, NY, NC, ND, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
00
Total Assets
$500
Audited by Metwally CPA PLLC for year ending December 31.
Delah Coffee Franchise — FAQ
The total investment to open a Delah Coffee franchise ranges from $282,300 to $424,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Delah Coffee charges a royalty fee of 4.5% of Gross Sales of gross sales, plus a Up to 2% of Gross Sales (Brand Development Fund, currently not assessed); 1% of Gross Sales (Franchisee Directed Local Marketing) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Delah Coffee Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Delah Coffee to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Delah Coffee franchise owners report average revenue of $844K and median revenue of $835K. This is based on a sample of 3 units. Past performance does not guarantee future results.
Delah Coffee has been franchising since 2025. The FDD shows an investment range of $282,300-$424,000, a 4.5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $282,300 to $424,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Delah Coffee and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Delah Coffee or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com