How to Finance a Matari Coffee Co. Franchise: Coffee House Costs
By Chris Cornella
A Matari Coffee Co. franchise loan pays to open a Yemeni-inspired coffeehouse that serves traditional Yemeni coffee and tea alongside espresso drinks, signature lattes and pastries. The brand started in Michigan, has spread to other states and Canada through new owners, and is listed on the SBA Franchise Directory, which means a qualified buyer can consider SBA-guaranteed financing as well as conventional loans.
Matari does not publish its franchise fee, royalty or investment range in any source we could verify, so this article explains what is known about the concept, which parts of the Franchise Disclosure Document (FDD) shape your loan, how the brand’s SBA directory note works and how to build a financing plan before you have every number.
US Professional Funding is not affiliated with, sponsored by or endorsed by Matari Coffee Co.; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, so review the current FDD and franchise agreement with a franchise attorney and an accountant before you sign or borrow.
Matari Coffee Co. Franchise Loan at a Glance
- Concept: a Yemeni-style coffeehouse with Yemeni coffee and tea, chai drinks, espresso drinks, alcohol-free mojitos and dessert pastries.
- Origin: the flagship cafe is in Canton, Michigan, and the brand has grown into other states and Canada.
- Franchising: the brand expands through independent owners; new markets such as the Houston area are being opened by franchisees.
- Fees and investment: not published in any source we could verify; they appear in Items 5, 6 and 7 of the FDD.
- Owner requirements: not published; ask the franchise team for minimum net worth and liquid capital.
- SBA Franchise Directory: listed as Matari Coffee Co. under code S8800, with one note about lease documents when real estate secures the loan.
What Is Matari Coffee Co.?
Matari Coffee Co. is a coffeehouse concept built around Yemeni coffee culture. The name ties to the family of Sadeq Almatari, who leads the business, and to Matari, a coffee-growing area of Yemen known for specialty beans.
The menu mixes old and new. Guests find traditional Yemeni coffee and tea, Adeni chai and Jubani coffee next to European-style espresso drinks, a pistachio latte and the brand’s signature pink Matari Latte, a spiced green tea drink with milk, toasted pistachios and rose petals. Alcohol-free mojitos and sweets such as milk cake, honeycomb pastry and pistachio cheesecake round out the offer.
Decaf and caffeine-free drinks give guests a choice on caffeine, and some locations keep late hours, making the cafe an evening gathering spot as much as a morning stop.
Where the brand operates. Matari cafes have opened in Michigan suburbs and in places such as Illinois, Ohio and California, and new owners are opening in Texas. That spread is still modest, so Matari is best described as an emerging franchise rather than a mature national chain.
How lenders view the brand. Lenders like the clear identity and the mix of drinks and desserts. They will also note that the system is young, published unit data is limited and results may depend on whether a market has an audience for Yemeni-style coffee. Our article on financing an emerging franchise explains how lenders handle newer systems.
Matari Coffee Co. Franchise Costs
Because Matari’s numbers are not published, treat this section as a checklist of the costs your FDD and your own quotes must fill in.
Initial franchise fee
Item 5 of the FDD states the initial fee, when it is due and whether it is refundable. Ask whether a reduced fee applies to a second cafe or a development agreement.
Real estate and build-out
Most cafe owners lease a storefront rather than buy a building. Build-out covers plumbing for espresso machines and ice makers, electrical upgrades, flooring, lighting, a service counter, seating and the decor that gives the cafe its look. Because guests linger, especially in the evening, seating and atmosphere may matter more than in a grab-and-go coffee bar.
Equipment
Expect espresso machines and grinders, brewers suited to Yemeni coffee and chai, blenders, ice machines, refrigeration, a pastry case and a point-of-sale system.
Opening costs and working capital
Item 7 also lists training, opening inventory of coffee, tea, dairy and pastry ingredients, deposits, insurance, licenses and additional funds for the first months, which protect you while the cafe builds a regular crowd.
Total investment
The Item 7 table gives a low-to-high range for the whole project. Line items you should expect include:
- Initial franchise fee
- Lease deposits and rent before opening
- Leasehold improvements and construction
- Furniture, fixtures and decor
- Espresso, brewing, blending and refrigeration equipment
- Point-of-sale and technology
- Signage
- Opening inventory and supplies
- Training travel and expenses
- Licenses, permits, insurance and professional fees
- Grand opening marketing
- Additional funds for the initial operating period
Compare each line against real quotes for your site, because build-out can run above estimates when a space needs new plumbing.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists recurring fees such as royalty, any brand or marketing fund contribution, technology or software fees, training fees for new managers, transfer fees and renewal fees. It may also require you to buy coffee or other products from approved suppliers.
How lenders factor these costs in. Lenders subtract royalties, marketing contributions, rent, payroll and cost of goods before they look at debt service. A percentage royalty rises with sales, so it trims cash for loan payments at every revenue level.
Franchisor Requirements for New Owners
Matari does not publish minimum net worth or liquid capital figures in any source we could verify. Ask the franchise team directly, and expect lenders to set their own requirements as well.
The approval process. A typical path runs from inquiry to receipt of the FDD, follow-up calls, a market review and an approval decision. Franchise law requires a waiting period between receiving the FDD and signing, so use it to line up financing.
Ways to Own a Matari Coffee Co.
A new cafe. Most buyers will open a new location. Financing covers build-out, equipment, the franchise fee and working capital, and the lender will rely on your projections and the market’s fit for the concept. Our franchise start-up financing page covers this route.
Buying an existing cafe. If an owner sells an operating Matari location, the franchisor must approve the transfer. A buyer can show lenders actual sales history, which can make underwriting easier. Our guide to buying a coffee shop covers what to review.
Financing Options for a Matari Coffee Co. Franchise
SBA 7(a) loans. Because Matari is on the SBA Franchise Directory, an SBA 7(a) loan can cover build-out, equipment, the franchise fee, working capital and in some cases the purchase of an existing cafe. Longer terms can lower payments for a newer business.
SBA 504 loans. If you buy the building for your cafe, an SBA 504 loan can finance owner-occupied real estate and long-lived assets. That route fits only when you will own the property.
Conventional term loans. A Matari Coffee Co. franchise loan does not have to be SBA-backed. Buyers with strong credit, collateral and experience may consider conventional business loans. They can involve less paperwork but may ask for more equity or shorter terms.
Equipment financing. Espresso machines, grinders, blenders, ice makers and refrigeration can be financed or leased separately through restaurant equipment financing, keeping more cash for opening.
Working capital and lines of credit. A cafe that relies on evening and weekend traffic may see uneven weeks at first. Restaurant working capital can cover payroll, inventory and rent while sales build.
Seller financing on resales. When buying an existing cafe, a seller may agree to carry part of the price. Seller notes are typically subordinate to the main loan, and SBA rules may limit how they are structured.
SBA Loans for Matari Coffee Co. Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. Lenders generally need a brand to be listed before making an SBA-guaranteed loan to its franchisees, but a listing does not approve any borrower.
Matari’s listing. Matari Coffee Co. appears under code S8800 with one note.
What the note means. Some franchise systems ask the landlord and franchisee to sign documents that let the franchisor take over the lease if the franchise ends. The directory says that when the real estate where the cafe is located will secure the SBA-guaranteed loan, the Conditional Assignment of Lease and the Consent and Agreement of Landlord may not be executed. In plain terms, if you own the building and pledge it as collateral, those lease documents are not signed. If you lease your space, the note does not apply.
Application tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Loans are sized to your projected cash flow and collateral, not to the cap. Our SBA loan calculator can help with early payment estimates for planning only.
How Lenders Evaluate a Matari Coffee Co. Deal
Personal credit and financial history. Lenders review your credit and existing debt.
Net worth and liquidity. You will need verifiable cash for your equity injection plus reserves.
Industry and management experience. Experience running a cafe, restaurant or retail store helps. If you have none, plan to hire an experienced manager and complete the franchisor’s training.
Business plan and projections. Show how you will reach guests who know Yemeni coffee and how you will introduce it to those who do not. Address daypart mix, evening traffic, dessert sales and staffing for late hours. Our article on the role of the FDD in franchise financing explains which items lenders read.
The FDD and franchise agreement. Lenders review fees, term, transfer rules, territory and supplier requirements.
Site and lease. Lenders check lease length, renewal options and rent; a lease shorter than the loan term is a concern.
Historical financials for resales. For an existing cafe, lenders want tax returns and profit and loss statements.
Equipment and Atmosphere for a Lingering Cafe
A Matari cafe has to make several drink styles well: espresso drinks, brewed Yemeni coffee, spiced teas and blended or iced drinks. That calls for reliable espresso equipment, brewing gear suited to traditional preparation and a strong ice and refrigeration setup.
Because many guests stay to talk, seating and decor are part of the product, and lenders will want quotes for both equipment and finishes.
Multi-Unit Growth and Development Agreements
An owner who plans several cafes in a region may sign a development agreement with a schedule of openings. Each new cafe usually needs its own financing, and lenders will look closely at how the first cafe is performing before funding the next. See our article on multi-unit franchise financing for more.
Missing development deadlines can cost you territory rights, so keep the schedule realistic.
Real-World Scenarios
A first-time owner in a new suburb. A buyer with corporate management experience wants to open a cafe in a growing suburb. They pair an SBA 7(a) loan with an experienced cafe manager and a detailed local marketing plan.
A restaurant operator adding a cafe. An owner of several restaurants opens a Matari in a strip center they already lease. Their track record helps them qualify, and they finance the espresso and refrigeration equipment separately.
A buyer purchasing a cafe and its building. A buyer acquires an operating cafe along with the small building it sits in. An SBA loan funds the purchase, and because the building secures the loan, the lease documents named in the directory note do not apply.
Common Mistakes to Avoid
- Signing a lease before reading the FDD and getting a lender’s view of the site.
- Assuming the franchisor’s Item 7 range covers build-out for your specific space.
- Underestimating working capital while the cafe builds a following.
- Ignoring how royalties and supplier rules affect cash flow.
- Overlooking whether your market has enough demand for Yemeni-style coffee.
Our article on restaurant loan mistakes covers more pitfalls.
Next Steps to Finance Your Matari Coffee Co. Franchise
Step 1: Contact the franchise team. Request the current FDD and ask about fees, owner requirements and available markets.
Step 2: Review the FDD with advisors. Have a franchise attorney and accountant read it.
Step 3: Talk with a financing specialist. Discuss Matari Coffee Co. franchise loan options before you commit to a site.
Step 4: Find and evaluate a site. Get build-out and equipment quotes for your specific space.
Step 5: Build your business plan. Include projections, a marketing plan and a staffing plan.
Step 6: Apply and close. Submit a complete loan package and coordinate closing with your lease and franchise agreement.
Matari Coffee Co. Franchise Loan FAQs
How much does a Matari Coffee Co. franchise cost?
The total cost appears in Item 7 of the current FDD, and it is the number your Matari Coffee Co. franchise loan request is built around. It depends on the size and condition of your space, local construction costs and equipment.
What is the Matari Coffee Co. franchise fee?
The initial fee is listed in Item 5 of the FDD. We could not verify a published figure.
What royalty does Matari charge?
Royalty and other recurring fees appear in Item 6 of the FDD.
How much liquid capital do I need?
The company has not published requirements we could verify. Lenders will also expect you to cover your equity injection and reserves.
Is Matari Coffee Co. eligible for SBA loans?
Yes. The brand is listed on the SBA Franchise Directory under code S8800, which means qualified borrowers can apply for SBA-guaranteed loans.
Can I buy an existing Matari location?
If an owner is selling, yes, subject to franchisor approval. Lenders will review the cafe’s sales and tax history.
Can a first-time owner get a Matari Coffee Co. franchise loan?
Yes, if the franchisor approves you and you meet lender standards. Management experience, liquidity and a strong plan help.
Does the franchisor offer financing?
Item 10 of the FDD discloses whether the franchisor offers any financing.
How long is the franchise term?
Item 17 of the FDD lists the term and renewal conditions. Match your loan term and lease to it.
Does the FDD include financial performance information?
Check Item 19 to see whether the FDD includes financial performance representations. Do not rely on sales claims made outside the FDD.
Final Thoughts
Matari Coffee Co. offers a distinct Yemeni coffeehouse built for lingering visits. With little published franchise data, getting the FDD early, pricing your build-out carefully and understanding the SBA directory note will strengthen your position with lenders.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
