About KARAK HOUSE FRANCHISING COMPANY Franchise
Karak House is a specialty tea and beverage franchise that brings traditional karak chai and Middle Eastern inspired drinks to the American market.
The concept centers on the rich, aromatic tea preparations popular throughout the Gulf region, offering customers an authentic cultural beverage experience alongside complementary menu items.
With a franchise fee of $1,200, Karak House provides one of the lowest cost franchise opportunities in the specialty beverage industry.
KARAK HOUSE FRANCHISING COMPANY Franchise Cost & Fees
Minimum Investment
$326K
Average Investment
$430K
Maximum Investment
$534K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $1,200 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $750.00 | National brand fund |
| Total Investment Range | $325,800 – $533,700 | Includes build-out, inventory, working capital |
The investment range of $326K–$534K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenue) and marketing fee ($750.00) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee¹ | $39,900 | $39,900 |
| Travel & Living Expenses While Attending Orientation Training Program² | $2,500 | $5,000 |
| Rent & Security Deposit³ | $12,000 | $24,000 |
| Leasehold Improvements⁴ | $120,000 | $190,000 |
| Furniture, Fixtures & Equipment⁵ | $35,000 | $55,000 |
| Toast Software⁶ | $1,900 | $3,800 |
| Signage⁷ | $8,000 | $16,000 |
| Business Licenses⁸ | $1,000 | $5,000 |
| Grand Opening9 | $2,500 | $5,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 35% of the then current franchise fee |
| Renewal Fee | 25% of the then current franchise fee |
| Audit Fee | Payable to and collected by Franchisor. If an audit is required due to your fail |
| Orientation Training Program 6 | $1,200 |
| Additional Training 7 | $1,200 |
| Late Fees11 | 10% of amount due |
| Website Maintenance, Graphic and Promotion Fee 13 | $150 |
| Renovation of Business15 | $45,000 |
| Product and Vendor Assessment Fee 17 | $1,000 |
| Interest on late payments18 | The lesser of 1 ½% per month or the maximum amount permitted by applicable law. |
| Relocation Fee 20 | $5,000 |
| Travel & Living Expenses While Attending Orientation Training Program² | $2,500 |
| Rent & Security Deposit³ | $12,000 |
| Leasehold Improvements⁴ | $120,000 |
| Furniture, Fixtures & Equipment⁵ | $35,000 |
| Signage⁷ | $8,000 |
| Business Licenses⁸ | $1,000 |
| Grand Opening9 | $2,500 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
KARAK HOUSE FRANCHISING COMPANY Franchise Earnings — Item 19
KARAK HOUSE FRANCHISING COMPANY does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
KARAK HOUSE FRANCHISING COMPANY does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
KARAK HOUSE FRANCHISING COMPANY Litigation & Risk Flags
2 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
KARAK HOUSE FRANCHISING COMPANY System Growth
Total Units
0
Franchised
0
Company-Owned
0
KARAK HOUSE FRANCHISING COMPANY currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | ||
| 2022 | 0 | ||
| 2022 | 0 | ||
| 2023 | 0 | ||
| 2023 | 0 | ||
| 2023 | 0 | ||
| 2024 | 0 | ||
| 2024 | 1 | ||
| 2024 | 1 |
KARAK HOUSE FRANCHISING COMPANY Franchise — FAQ
The total investment to open a KARAK HOUSE FRANCHISING COMPANY franchise ranges from $325,800 to $533,700, per their Franchise Disclosure Document. This includes the initial franchise fee of $1,200. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
KARAK HOUSE FRANCHISING COMPANY charges a royalty fee of 6% of Gross Revenue of gross sales, plus a $750.00 contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the KARAK HOUSE FRANCHISING COMPANY 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 KARAK HOUSE FRANCHISING COMPANY to ensure you have the most up-to-date version.
KARAK HOUSE FRANCHISING COMPANY does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
KARAK HOUSE FRANCHISING COMPANY has been offering franchise opportunities. The FDD shows an investment range of $325,800-$533,700, a 6% of Gross Revenue royalty, and includes an Item 19 earnings disclosure. There are 2 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $1,200 and the total investment ranges from $325,800 to $533,700 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 KARAK HOUSE FRANCHISING COMPANY and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with KARAK HOUSE FRANCHISING COMPANY or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com