About Mokafé Franchise
Mokafe is a specialty beverage franchise offering an upscale lounge experience centered around Yemeni inspired coffee, specialty drinks, shakes, and teas.
Each location transforms its space into an inviting atmosphere suitable for both daytime relaxation and evening socializing, providing a chic and comfortable alternative to traditional bars or hookah lounges for guests who want quality beverages in a refined setting.
The franchise fee is $35,000, and Mokafe has been franchising since 2025 under Mokafe Corp.
Mokafé Franchise Cost & Fees
Minimum Investment
$324K
Average Investment
$495K
Maximum Investment
$665K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of weekly Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.5% of weekly Gross Revenue (Brand Fund Contribution); 1.5% of monthly Gross Revenue (Required Minimum Expenditure for Local Marketing and Advertising) | National brand fund |
| Total Investment Range | $324,250 – $665,000 | Includes build-out, inventory, working capital |
The investment range of $324K–$665K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of weekly Gross Revenue) and marketing fee (1.5% of weekly Gross Revenue (Brand Fund Contribution); 1.5% of monthly Gross Revenue (Required Minimum Expenditure for Local Marketing and Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Leasehold Improvements, Construction and/or Remodeling | $100,000 | $350,000 |
| Premises Lease Deposits | $8,000 | $15,000 |
| Utility Deposit | $1,500 | $2,500 |
| Design & Architect Fees | $10,000 | $18,000 |
| Furniture, Fixtures, Equipment, & Supplies | $100,000 | $125,000 |
| Computer Systems | $2,500 | $5,000 |
| Security System | $500 | $1,500 |
| Exterior Signage | $5,000 | $10,000 |
| Office Equipment & Supplies | $1,500 | $2,500 |
| Initial Inventory to begin Operating | $15,000 | $20,000 |
| Insurance | $1,750 | $3,500 |
| Your Training Expenses (transportation, lodging, and meals) | $6,000 | $10,000 |
| Grand Opening Marketing Campaign | $8,000 | $8,000 |
| Professional Fees | $2,500 | $5,000 |
| Business Permits and Licenses | $2,000 | $4,000 |
| Additional Funds-3 months | $25,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current franchise fee (for new franchisee); 20% of the then-current franchise fee (for transfers to existing franchisee in good standing); $2,500 (for transfers to an entity owned and controlled by the franchisee for convenience purposes or for transfers among owners that do not change management control) |
| Renewal Fee | 25% of the then-current Initial Franchise Fee or the minimum of $7,500 |
| Technology Fee | Currently $200 per month, subject to increase up to $450 |
| Audit Fee | Costs of examination plus related expenses |
| Initial Training (additional trainees) | $300 per person per day |
| Additional Onsite Assistance | $500 per representative per day plus travel and other living expenses |
| Remedial Training | $500 per trainer per day plus travel and other living expenses |
| Advertising Cooperative | Your share of actual cost of advertising |
| Late Fee | $100 per occurrence |
| Interest | 18% per annum, from due date, or maximum allowed by law |
| Non-Sufficient Funds Fee | $150 per violation |
| Relocation Fee | 50% of the then-current franchise fee |
| Testing or Supplier Approval Fee | $750 and any additional cost |
| Audit and Quality Assurance Fees | $100 - $400 per visit |
| Temporary Management Fee | Currently $500 per representative per day plus reimbursement of our expenses |
| Customer Resolution Fee | $250 plus reimbursement of our expenses |
| Reimbursement of Legal Fees and Expenses | Our costs and expenses, including but not limited to attorneys’ fees |
| Indemnification | Amount of loss or damages plus costs |
| Non-Compliance Fee | $500 per incident per day |
| Reimbursement of Costs and Expenses for Non-Compliance | Actual costs and expenses |
| Site Selection Extension Fee | $5,000 |
| Post-Termination or Post-Expiration Expenses | Costs and expenses |
| Insurance Reimbursement | Actual amount paid by us for your insurance obligations, plus an additional ten percent (10%) administrative fee |
| Lost Revenue Damages | Varies (average monthly Royalty Fee and Brand Development Fund Contribution for 12 months prior to default, multiplied by the lesser of 24 months or remaining term) |
| Taxes | Amount of taxes |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 day mandatory Initial Training Program |
| Classroom Training | 23 |
| On-the-Job Training | 67 |
| Training Location | Corporate training facility in Paterson, NJ, or other training location we designate |
| Additional Training | We may offer mandatory and/or optional additional training programs or a national business meeting or annual convention. The total amount of required ongoing training and/or annual meetings will be five (5) days or less per year and will be held at locations we designate. You are responsible for all incidental expenses incurred by you and your personnel in connection with additional training or attendance. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected for dedicated Mokafé outlets, but not exclusive overall. |
| Exclusive Territory | No |
| Description | Your Territory is located in all or a portion of a listed town, city, or county, and is identified by a group of contiguous zip codes. There is no specified size or population for a Territory. The Territory is determined on an individual basis taking into account minimum numbers of households, average home prices and household incomes and/or daytime/nighttime populations. Each Territory is case-sensitive and based on, among other things, market size, demographics, shopping patterns, venue, and other factors unique to the location selected. The franchise is for a specific location, not a specific area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 1 additional term of 10 years |
| Renewal Fee | 25% of the then-current Initial Franchise Fee or the minimum of $7,500 |
| Renewal Conditions | Be in full compliance, have no more than 3 events of default during current term, provide written notice to us at least nine months before the end of the term, execute a new franchise agreement, pay us the Successor Agreement Fee, continue to have the right to occupy the premises or have received approval from us to relocate, remodel your Franchised Business location, execute a general release, comply with then-current qualifications and training requirements, including completion of additional training. You may be asked to sign a new Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. |
| Transfer Fee | 50% of the then-current initial franchise fee; 20% of the then-current initial franchise fee for transfers to existing franchisee in good standing; $2,500 for transfers to an entity owned and controlled by the franchisee for convenience purposes or for transfers among owners that do not change management control. |
| Transfer Conditions | Our decision not to exercise our right of first refusal; transferee meets our then-current standards for qualifying franchisees; transferee signs our then-current form of Franchise Agreement, which may have materially different terms from your Franchise Agreement; transferee, majority owner and its general manager successfully complete our Initial Training Program; you have paid us and third-party creditors all amounts owed; you and the transferee sign a General Release; you shall subordinate any claims you have against the transferee to us; our approval of the material terms and conditions of the transfer; landlord’s consent of a lease assignment, if applicable; payment of a transfer fee. |
| Termination for Cause | Automatic termination for insolvency, bankruptcy, inability to pay debts, receivership, levy, composition with creditors, unsatisfied final judgment for more than 30 days, or foreclosure proceeding not dismissed within 30 days. Termination upon notice if you: do not acquire a site, do not complete construction and/or open the Franchised Business within required time frames; falsify any report; cease operations for 5 days or more (unless due to casualty and timely relocation/reconstruction efforts); lose possession of premises (unless not at fault and timely relocation efforts); fail to restore/re-open within 120 days after casualty; fail to comply with applicable laws; default under any lease; understate Gross Revenue 2 or more times; fail to comply with insurance/indemnification; attempt a transfer in violation of agreement; fail to transfer upon death/disability; misrepresent/omit material facts in application; convicted/plead no contest to felony/crime damaging goodwill; adverse judgment in fraud/racketeering/improper trade practices; conceal revenues/maintain false books; create public health/safety threat; refuse inspection/audit; unauthorized use of Marks/confidential info; fail to comply with non-competition covenants; default 3+ times or 2+ times in 12 months; insufficient funds 2+ times in 12 months; or terminate without cause. |
| Non-Compete Period | During the term of this Agreement and for 24 months after termination or expiration. |
| Non-Compete Details | During the term, you may not divert customers to competitors, participate in any capacity in a competitive business, or perform any act injurious to the Marks/System. After termination/expiration (for 24 months), you may not divert customers to competitors, participate in any capacity in a competitive business within 10 miles of your former Mokafé outlet or any other Mokafé outlet location, or perform any act injurious to the Marks/System. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The Franchise Agreement does not require that you personally supervise your Mokafé outlet, although we recommend it. If you choose not to personally supervise your outlet then your Mokafé outlet must be directly supervised on a day to day basis by a general manager. Your general manager can either be you or someone appointed by you who is acceptable to us. Your general manager must successfully complete our Initial Training Program and all other training courses we require. Your general manager must devote full time to the job and cannot have an interest or business relationship with any of our competitors. |
| Required Suppliers | You must purchase all equipment, fixtures, furnishings, ingredients, supplies and services, including computer systems and certain software, from our designated suppliers and contractors or in accordance with our specifications, and that our standards and requirements. We maintain written lists of approved items of equipment, fixtures, inventory and suppliers (by brand name and/or by standards and specifications) and a list of designated suppliers and contractors for those items. We update these lists periodically and issue the updated lists to all franchisees. |
| Supply Restrictions | We estimate that your purchase or lease of products, supplies and services from approved suppliers (or those which meet our specifications) will represent approximately 80% - 90% of your costs to establish your Franchised Business and approximately 90% of your costs for ongoing operation. If you would like us to consider another supplier, you must make such request in writing to us and have the supplier give us samples or its product or service and such other information that we may require. The written request shall include a payment by check of $750.00, and the Franchisor may charge the Franchisee with additional costs due to any research, product testing, administrative or any other expenses incurred by the Franchisor from the alternative supplier request. |
| Franchisor Revenue from Suppliers | We and our affiliate reserve the right to earn a profit from the sale of products to our franchisees. We have the right to collect and retain any and all allowances, rebates, credits, incentives, or benefits offered by manufacturers, suppliers, and distributors to you, to us, or to our affiliate, based upon your purchases of products. During the fiscal year ended December 31, 2024, we and our affiliate did not earn any Allowances because we did not have any franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf. |
Mokafé Franchise Earnings — Item 19
Average Revenue
$1.5M
Revenue Range
$1.1M – $1.9M
Sample Size
2 units
Past financial performance does not guarantee future results. Individual results will vary.
Mokafé Litigation & Risk Flags
Clean Litigation RecordMokafé 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.
Mokafé System Growth
Total Units
6
Franchised
0
Company-Owned
6
Mokafé currently operates 0 franchised locations and 6 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 2 |
| 2024 | 0 | 0 | 6 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
0
Net Income
$-72,434
Total Assets
$342
Audited by DA Advisory Group PLLC for year ending December 31.
Mokafé Franchise — FAQ
The total investment to open a Mokafé franchise ranges from $324,250 to $665,000, 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.
Mokafé charges a royalty fee of 6% of weekly Gross Revenue of gross sales, plus a 1.5% of weekly Gross Revenue (Brand Fund Contribution); 1.5% of monthly Gross Revenue (Required Minimum Expenditure for Local Marketing and Advertising) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Mokafé 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 Mokafé to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Mokafé franchise owners report average revenue of $1.5M. This is based on a sample of 2 units. Past performance does not guarantee future results.
Mokafé has been franchising since 2025. The FDD shows an investment range of $324,250-$665,000, a 6% of weekly Gross Revenue 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 $324,250 to $665,000 depending on location size and market. A minimum of $25,000 in liquid capital is required. 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 Mokafé and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Mokafé or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com