Karak House franchise
2025 filing · February 16, 2025Shares sales figures
Karak House at a glance
A coffee house serving coffee and other drinks and food. At the end of 2024 there were 1 Karak House locations in the US, all company-owned.
The business
- Franchisor
- Karak House Franchising Company LLC
- The company that sells the franchises
- Typical size
- 1,500–2,500 sq ft
What you pay
- Cost to open
- $261K–$409K
- Fee, build-out and opening working capital
- Franchise fee
- $39,900
- Paid once, when you sign
- Royalty
- 6%
- 6% of gross revenues, paid weekly, plus 1% to the national marketing fund
- Brand fund
- 1%
- 1% of gross revenue, paid weekly
- Renewal fee
- See terms
- 25% of the then current franchise fee
- Agreement length
- 10 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 1
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 1
- Change in 3 years
- 0
- Franchised locations, 2022–2024
From Karak House Franchising Company LLC’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Karak House among all franchises with the same figure.
| Figure | Karak House | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $334,750 | Costs less than 52% of franchises |
| Franchise feePaid once, when you sign | $39,900 | Lower than 57% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 1 | Fewer than 88% of franchises |
How much a Karak House franchise costs
Opening one Karak House costs an estimated $260,800 to $408,700. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($120,000 to $190,000) and furniture, fixtures & equipment ($35,000 to $55,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $39,900 | ||
| Travel & Living Expenses While Attending Orientation Training Program | $2,500 | $5,000 | |
| Rent & Security Deposit | $12,000 | $24,000 | |
| Leasehold Improvements | $120,000 | $190,000 | |
| Furniture, Fixtures & Equipment | $35,000 | $55,000 | |
| Toast Software | $1,900 | $3,800 | |
| Signage | $8,000 | $16,000 | |
| Business Licenses | $1,000 | $5,000 | |
| Grand Opening | $2,500 | $5,000 | |
| Insurance | $4,000 | $10,000 | |
| Professional Fees | $3,000 | $5,000 | |
| Opening Inventory of Supplies | $5,000 | $10,000 | |
| Miscellaneous Opening Costs | $1,000 | $5,000 | |
| Additional Funds – [3 to 6 months] | $25,000 | $35,000 | |
| Total | $260,800 | $408,700 | |
Source: Karak House Franchising Company LLC, 2025 filing, page 18
Karak House franchise fee
The franchise fee is $39,900. You pay it when you sign the franchise agreement.
Source: Karak House Franchising Company LLC, 2025 filing, page 10
Royalty and ongoing fees
| Royalty | 6% of gross revenues, paid weekly, plus 1% to the national marketing fund. |
|---|---|
| Brand or marketing fund | 1% of gross revenue, paid weekly. |
| Point-of-Sale | Approximately $100 to $200 per month Tied to features you want |
| Transfer Fee | 35% of the then current franchise fee |
| Franchise Renewal Fee | 25% of the then current franchise fee |
| Additional Training | $1,200 per person trained. |
| Local Advertising ⁴ | $750.00 per month |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Karak House Franchising Company LLC, 2025 filing, page 12
Other fees as filed, from pages 12–14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Karak House publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Karak House Franchising Company LLC, 2025 filing, page 49
- Estimate Estimated yearly sales per location
- $520K–$900K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Karak House compares
Of the 117 coffee franchises on this site, Karak House is the 35th cheapest to open and the 105th largest by number of locations.
| Figure | Karak House | Typical coffee brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $261K | $350K | $222K |
| Cost to open, high end | $409K | $741K | $477K |
| Franchise fee | $40K | $35K | $40K |
| Royalty | 6% | 6% | 6% |
| Brand fund | 1% | 1.5% | 2% |
| US locations | 1 | 8 | 21 |
| Shares earnings figures | Yes | 69 of 117 | 2,147 of 3,352 |
Typical is the median across the 117 brands in coffee franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2022 | 0 (0) | 0 | 0 | 0 |
| 2023 | 0 (0) | 0 | 0 | 0 |
| 2024 | 0 (0) | 1 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: coffee franchise costs and franchise failure rates.
Source: Karak House Franchising Company LLC, 2025 filing, page 52
Who owns Karak House?
Karak House franchises are sold by Karak House Franchising Company LLC.
From Karak House Franchising Company LLC’s 2025 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 9–10. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Karak House Franchising Company LLC, 2025 filing, litigation on pages 9–10, bankruptcy on page 10
Karak House filings
The figures on this page come from Karak House Franchising Company LLC’s 2025 filing, issued February 16, 2025, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | February 16, 2025 | NASAA depository | Costs, fees and locations, 2022–2024 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other coffee franchises
All coffee franchises
Karak House is also on these lists: food franchises.