Kahala Franchising, L.L.C.
9311 E. Via De Ventura
Kahala Franchising, L.L.C is an Arizona limited liability company which was formed on December 29, 2008. Their parent company is Kahala Brands, Ltd., which is a Delaware corporation. Kahala Brands was formerly known as Kahala Corp. but changed its name to Kahala Brands in December 2014. Prior to that, Kahala Corp. was a Florida corporation and was redomiciled in Delaware on December 31, 2012. On July 26, 2016, Kahala Brands merged with a wholly-owned subsidiary of MTY Food Group, Inc. having an address at 8150 Transcanada Highway, Suite 200, Saint Laurent, Québec H4S 1MF. Kahala Brands’ parent company became MTY Franchising USA, Inc., a Delaware corporation incorporated originally as The Extreme Pita Franchising USA, Inc. on March 14, 2001, and having an address of 9311 E Via De entura, Scottsdale, Arizona 85258.
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Franchimp Summary Rating
3/10
Earning Transparency
1/10
Investment Accessibility
4/10
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Upfront Franchise Fees
Minimum: $34,000 Maximum: $60,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $96,350 Maximum: $1,116,000
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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