................................................................... F-9 Accepting Cards .......................................................................... F-9 Credit/Debit/Apple Pay/Google Pay
From the filings
Haraz Coffee House
Quick service restaurantHaraz Coffee House's 17 US units (14 franchised, 3 company-owned) run a $697,069 average unit volume on a 4% royalty, and unit count grew 250% year over year — the fastest-growing brand in this set. No tech system in the 2025 FDD carries a mandate, so purchasing decisions run through the franchisor's own leadership and its affiliate sourcing arm, Haraz HQ. That combination of fast growth and centralized sourcing makes this an early-stage but concrete target.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
6%of gross sales (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
uniformity, your location(s) will be listed on our website and social media platforms. As a result, you may not develop or create your own website or social media platforms (i.e. Facebook, Twitter, et
......................................................... F-9 Accepting Cards .......................................................................... F-9 Credit/Debit/Apple Pay/Google Pay .........
ing services 2,400.00 Accounting fees 4,142.00 Legal fees 19,000.00 Total Legal & accounting services 25,542.00 Office expenses Office supplies 486.99 Total Office expenses 486.99 QuickBooks Payments
y, your location(s) will be listed on our website and social media platforms. As a result, you may not develop or create your own website or social media platforms (i.e. Facebook, Twitter, etc.) for y
Franchisor behaviours
What the franchisor requires
28 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 4 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We have the right to independently access the sales information and other data produced by the POS and other computer systems specified by us and there are no contractual limitations on our right to access and use that information and data.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee must provide FRANCHISOR with copies of all sales or similar tax returns, annual income tax returns, monthly profit and loss statements, monthly balance sheets, monthly inventory statements and annual financial statements.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We and our affiliates may be Approved Suppliers.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
FRANCHISOR reserves the right to change the Franchise System after the signing of this Agreement and to change the terms of the Operations Manual after the signing of this Agreement to reflect those changes.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
2951723Item 8
During fiscal 2024, our Affiliate, Haraz HQ received $2,951,723 (100% of its revenue) in revenue from required purchases by franchisees of equipment such as espresso machines and grinders.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We reserve the right to receive rebates or other fees from Approved Suppliers based on sales of goods or services to our franchisees.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
90Item 8
All of your purchases from Approved Suppliers and in accordance with our specifications will represent 90% to 100% of your total purchases in the establishment of your HARAZ COFFEE HOUSE franchise and 90% to 100% of your total purchases in the ongoing operation of your Franchise Business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
Our fee will be $250 for each request plus costs of lab testing or fees charged by the vendor.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you wish to request approval of a supplier, we may grant approval of alternative suppliers upon written request.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 5
Franchisee irrevocably assigns to HARAZ COFFEE HOUSE or its designee the (i) telephone number or numbers and listings, including cell phone numbers issued (or issued in the future) to Franchisee with respect to each and all of Franchisee’s HARAZ COFFEE HOUSE businesses (“Telephone Numbers”)
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 11
The POS computer system must be setup in accordance with the Payment Card Industry Data Security Standards (PCI DSS) and must be PCI compliant.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
Our representative will visit the Franchise Business after opening and periodically visit the business after that at intervals that we deem appropriate throughout the remaining term of the Franchise Agreement.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
FRANCHISOR reserves the right to change the Franchise System after the signing of this Agreement and to change the terms of the Operations Manual after the signing of this Agreement to reflect those changes.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We must approve each site for your Franchise Business regardless of whether you are opening just one location or a number of locations pursuant to a Multi-Unit Development Agreement pursuant to our then current standards
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
As a result, you may not develop or create your own website or social media platforms (i.e. Facebook, Twitter, etc.) for your franchise location.
Is a minimum grand opening advertising spend required?
YesItem 11
You are required to spend $5000 for grand opening advertising for your Franchise Business (“Grand Opening Advertising Payment”).
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
You must conduct local advertising in your Territory and spend at least 1% of your Cafe’s Gross Sales each month for local advertising.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
You must participate in any gifts cards, coupons, ad flyers, electronic gift or money cards (E-cards), frequency cards, promotions, specials or other programs specified by us and honor all cards issued by us or by other franchisees in accordance with our policies.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If your Franchise Business is within a designated advertising area, you must join, maintain a membership in and abide by the governing instrument of the advertising cooperative for that area.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all equipment, fixtures, signs, banners, inventory, coffee and espresso beans, teas, food products, proprietary seasonings, recipes, supplies, packaging materials, ingredients, paper and plastic products, menus, uniforms, POS and computer systems, computer hardware and software, time clocks and…
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase all equipment, fixtures, signs, banners, inventory, coffee and espresso beans, teas, food products, proprietary seasonings, recipes, supplies, packaging materials, ingredients, paper and plastic products, menus, uniforms, POS and computer systems, computer hardware and software, time clocks and…
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
You will pay royalty, advertising and other periodic payments payable to us by electronic or similar funds transfer in the appropriate amounts from your primary bank account to our bank accounts in the manner that we specify.
Must the franchisee participate in a gift card program?
YesItem 11
You must participate in any gifts cards, coupons, ad flyers, electronic gift or money cards (E-cards), frequency cards, promotions, specials or other programs specified by us and honor all cards issued by us or by other franchisees in accordance with our policies.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee must maintain at all times a staff of trained employees sufficient to operate the Franchise Business in compliance with FRANCHISOR’s standards.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
All employees shall be required to wear shirts, pants, hats or other uniform items as required by Franchisor, which items shall be designated by the operations manual which may be revised from time to time.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase or lease the point of sale (“POS”) and computer systems we specify for the Franchise Business and use the specified POS and computer systems in the Franchise Business in the manner we specify.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have the right to independently access the sales information and other data produced by the POS and other computer systems specified by us and there are no contractual limitations on our right to access and use that information and data.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We reserve the right to charge you a training fee for each attendee at these additional training programs at our then current per diem rate which is $250.00 as of the issuance date of this disclosure document.
The filing answers no to 2 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.
- 97.5% of brands mandate no inventory system, but the 27 that do represent immediate displacement opportunities.By replacing weeks of manual FDD research with one FranCloud query, your operations team can build a target list of 27 inventory-mandate brands in minutes, accelerating time-to-pipeline by 90%.
The vendor opportunity at Haraz Coffee House
Haraz Coffee House runs 17 US units (14 franchised, 3 company-owned) in the quick-service restaurant segment, headquartered in Michigan. The 2025 FDD carries a financial performance representation, with a $697,069 average unit volume and a 4% royalty on a 10-year initial term. Unit count grew 250% year over year — the fastest-growing brand in this batch, and a system where no technology has been mandated yet.
Who controls software purchasing
Item 2 names Hamzah Nasser as Chief Executive Officer and Member — the sole officer named in the filing, and the natural point of contact for a vendor pitch given the system's size. Item 8's proprietary-supplier rules for coffee, espresso beans and seasonings run through the franchisor's affiliate, Haraz HQ, which signals a franchisor that already centralizes sourcing decisions.
Tech named in the FDD, and what is actually required
Apple Pay, from Apple, and Google Pay, from Google, appear in Item 5, and Facebook and Twitter/X appear in Item 11 — all named without being required. The FDD requires none of the systems it names.
Procurement, renewals, and timing
Item 8 sets an approved-supplier model: franchisees must buy proprietary coffee and espresso beans and proprietary seasonings from the franchisor's affiliate, Haraz HQ, and other specified products only from designated or approved suppliers, which may be limited to the franchisor itself for proprietary items. Franchisees may propose an alternative supplier for approval. Item 17 lets franchisees renew for a 5-year term if they avoid default, give notice, keep possession of the location, satisfy payment and reporting requirements, meet current training standards, sign a general release and pay a renewal fee — potentially under a materially different franchise agreement. With 250% year-over-year growth, new-unit openings are the more active vendor-timing signal than renewals right now.
How to read the Haraz Coffee House FDD
The filing was filed with state franchise regulators in 2025, and the embedded PDF viewer below has the source document. Talk to FranCloud for a ranked target list of franchise systems that fit your ICP.
Questions vendors ask
Haraz Coffee House, answered from the filing
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Haraz Coffee House files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
41 operators run 45 mapped locations. 4 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| TX | 9 |
|---|---|
| IL | 7 |
| MI | 5 |
| CA | 4 |
| NC | 4 |
Related Quick service restaurant brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.