Kahala Coffee Traders is a very small coffee franchise system with only 5 operating units as of November 2024. The franchise offers traditional and non-traditional coffee shop opportunities with a total investment range from $88,400 to $516,500. Key concerns include the small system size, high turnover rates, and lack of territorial protection. The franchisor charges 6% royalties or $300 minimum weekly, plus up to 4% for advertising. Training includes 40 hours classroom and 40 hours on-site. The franchise agreement has a 10-year initial term with one 5-year renewal option. No financial performance representations are provided, making it difficult to assess potential profitability. The system appears to be struggling with growth and retention.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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