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A Haraz Coffee House near Syracuse University has closed less than a year after opening, while its Michigan-based franchisor pursues a lawsuit against the local operating company and two individuals. Haraz alleges unauthorized purchasing, unpaid invoices and royalties, and loss of access to the cafe’s sales account; the allegations have not been resolved in court.
A Haraz Coffee House near Syracuse University has closed less than a year after opening, as the Michigan-based franchisor pursues a lawsuit against the local operators over alleged violations of their franchise agreement. Haraz Coffee House Franchising LLC filed the case on September 25 in New York State Supreme Court in Onondaga County; the claims remain allegations, not court findings.
The lawsuit names Coffee Bean Syracuse LLC and individuals Mohammed Alsaidi and Emad Alzokari as defendants. The cafe operated at 125 Marshall St., near Syracuse University. According to the complaint, the operators purchased coffee, tea, milk, syrups, packaging and other products from suppliers Haraz had not approved, despite contractual requirements to use Haraz or designated suppliers.
Haraz also alleges that the operators did not pay outstanding product invoices and royalties and removed the franchisor’s access to the cafe’s Toast point-of-sale account, limiting its ability to monitor sales. In a sworn court statement, Haraz founder and CEO Hamzah Nasser said the company identified 39 product lines obtained from unauthorized suppliers. That number is presented in the filing as Haraz’s account; the complaint does not establish that a court has verified the alleged violations.
Haraz says it notified the operators of the alleged issues in April and terminated the franchise agreement on July 30 after they remained unresolved. The company is seeking to enforce post-termination terms, including removal of Haraz branding, return of proprietary business materials and cooperation with a potential transfer of the cafe’s lease to Haraz. It also seeks enforcement of a clause restricting the former operators from running a competing coffee business within five miles for two years.
The Dispute Could Shape the Site’s Future
The case concerns both the end of the Syracuse franchise and what happens to the cafe’s branding, business materials and lease. If Haraz succeeds in enforcing the provisions it cites, the former operators could face restrictions on running a nearby competing coffee business, while the company could seek to take over or transfer the location’s lease. The court’s handling of those requests may determine whether the site can continue under Haraz or another arrangement.
For customers, the confirmed immediate development is that the cafe has closed; the lawsuit does not, by itself, establish whether it will reopen or who might operate there. For franchise operators, the allegations highlight the practical importance of contract terms covering approved suppliers, payment of royalties and access to sales records. The case’s outcome, however, will depend on the evidence and court proceedings, not solely on the franchisor’s account.
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How the Franchise Agreement Worked
The franchise agreement filed with the court was signed in June 2024. It set an initial franchise fee of $50,000, a royalty of 4% of weekly gross sales and a 1% contribution to an advertising fund. It also required the operator to buy coffee and other products from Haraz or its designated suppliers, which could include companies affiliated with Haraz.
Haraz was founded by Nasser in Dearborn, Michigan, in 2021 and is among Yemeni coffeehouse brands expanding in the United States. The company’s homepage claims more than 60 existing locations and more than 240 locations under development, but does not specify how many are franchises. That company-reported footprint provides context for the chain’s growth, but does not establish the status of any particular location.
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Court Findings and Reopening Plans
The defendants’ response to the allegations was not included in the source report. Daily Coffee News said it had contacted an attorney representing them for comment. It is not clear whether the defendants dispute Haraz’s account, whether the court has issued any ruling, or when the case may be heard.
The available information also does not establish whether the former operators have removed the Haraz branding, returned business materials, or agreed to cooperate over the lease. There is no confirmed reopening plan, replacement operator or final decision on the requested five-mile, two-year restriction. The lawsuit’s claims and requests should not be treated as settled outcomes.
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The Lawsuit’s Next Steps
The next developments depend on filings and rulings in New York State Supreme Court in Onondaga County. The defendants may respond to the complaint, and the court will determine how to address Haraz’s requests to enforce the contract’s post-termination terms. No hearing date or decision was provided in the report.
Readers should watch for a response from the defendants, any court orders concerning the lease or competitive restriction, and a statement about the property’s future. Until those details emerge, the cafe’s closure is confirmed, but its longer-term status remains unresolved.
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Key Questions
Why did the Syracuse Haraz Coffee House close?
The cafe has closed as its franchisor pursues a lawsuit. Haraz says it terminated the franchise agreement on July 30 after alleged contract violations remained unresolved. The available report does not provide a separate explanation from the operators.
What does Haraz allege the operators did?
Haraz alleges the operators bought products from unapproved suppliers, failed to pay product invoices and royalties, and removed the company’s access to the cafe’s Toast point-of-sale account. These are claims in a lawsuit, not established court findings.
What is Haraz asking the court to enforce?
The company seeks enforcement of terms requiring removal of its branding, return of proprietary business materials and cooperation with a potential lease transfer. It also seeks to enforce a clause restricting the former operators from running a competing coffee business within five miles for two years.
Will the Syracuse location reopen?
No reopening plan or replacement operator has been confirmed in the available reporting. The future of the site may depend on the lease and the court proceedings.
Have the defendants responded to the lawsuit?
The report did not include a response from the defendants. Daily Coffee News said it had contacted their attorney for comment.
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