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A Haraz Coffee House at 125 Marshall St. near Syracuse University has closed less than a year after opening, as its franchisor pursues a lawsuit against the local operators. Haraz alleges breaches of the franchise agreement, including purchases from unauthorized suppliers and unpaid invoices and royalties; those 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 Sept. 25 in New York State Supreme Court in Onondaga County; the allegations have not been decided by the court.
The lawsuit names Coffee Bean Syracuse LLC and individuals Mohammed Alsaidi and Emad Alzokari as defendants. The cafe was located at 125 Marshall St., near Syracuse University. According to the complaint, the local operators bought coffee, tea, milk, syrups, packaging and other products from suppliers that Haraz had not approved, despite purchasing requirements in the franchise agreement.
Haraz also alleges that the operators failed to pay outstanding product invoices and royalties and removed the franchisor’s access to the cafe’s Toast point-of-sale account, limiting Haraz’s ability to monitor sales. In a sworn court statement, founder and CEO Hamzah Nasser said the company identified 39 product lines obtained from unauthorized suppliers. That figure is Haraz’s claim in the court filing, not a finding by a judge.
The company says it notified the Syracuse operators of the alleged violations in April and terminated the agreement July 30 after the issues remained unresolved. The lawsuit asks the court to enforce post-termination terms, including removing Haraz branding, returning proprietary materials and cooperating with a possible transfer of the cafe’s lease to Haraz. Daily Coffee News reported that it had sought comment from an attorney for the defendants; the source report did not include a response.
The Dispute Could Shape the Cafe’s Future
The case puts the status of the Marshall Street premises and the business operating there at issue, beyond the dispute over payments and supplier rules. Haraz is asking for cooperation on a possible lease transfer, but the filing alone does not establish that the company will take over the location or reopen it as a Haraz cafe.
The requested post-termination terms could also affect what the former operators may do next. Haraz seeks to enforce a two-year restriction on running a competing coffee business within five miles of the location. Whether that restriction applies as Haraz argues, and how the court will treat it, remain unresolved. For customers and nearby businesses, the immediate confirmed change is that the cafe has closed; the next use of the site is not established in the source report.
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What the Franchise Agreement Requires
The agreement filed with the court was signed in June 2024. It lists a $50,000 initial franchise fee, a royalty equal to 4% of weekly gross sales and a 1% contribution to an advertising fund. It also requires the operator to obtain coffee and other products from Haraz or designated suppliers, which may include companies affiliated with the franchisor.
Haraz was founded by Nasser in Dearborn, Michigan, in 2021. The company’s homepage, as described in the report, claims more than 60 existing locations and more than 240 locations in development, without specifying how many are franchised. Those company figures provide limited background on its growth; they do not resolve the Syracuse allegations.
“The operators failed to pay outstanding product invoices and royalties.”
— Haraz Coffee House Franchising LLC, in its complaint as summarized by Daily Coffee News
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Key Questions Remain Before Court
The source report does not state whether the defendants have filed an answer, dispute Haraz’s allegations, or reached a settlement. It also gives no ruling, hearing schedule or further court dates. The allegations—including the claimed unauthorized purchases, unpaid amounts and loss of point-of-sale access—remain claims in an ongoing case.
It is also unclear whether Haraz will gain access to or take over the lease, whether the cafe might reopen under different ownership or branding, and whether the requested five-mile restriction will be enforced. The report does not provide the defendants’ account of the dispute or explain the circumstances of the cafe’s closure beyond its connection in time with the franchise conflict.
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Court Proceedings Will Set the Next Steps
The next developments depend on the defendants’ response and the court’s handling of Haraz’s requests. A court decision or agreement between the parties could clarify control of the lease, use of Haraz’s branding and materials, and the scope of any restrictions on the former operators. No schedule for those steps is provided in the source report.
Daily Coffee News said it had contacted an attorney representing the defendants for comment. Further reporting or court filings may offer their response and clarify whether the location will reopen, change operators or remain closed. Until then, the closure is confirmed by the report, while responsibility for the alleged agreement breaches and the outcome of the case remain unsettled.
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Key Questions
Which Syracuse cafe has closed?
The closed business is the Haraz Coffee House at 125 Marshall St., near Syracuse University. The report says it closed less than a year after opening.
Why is Haraz suing the local operators?
Haraz alleges the operators bought products from suppliers it had not approved, failed to pay product invoices and royalties, and removed the franchisor’s access to the cafe’s Toast point-of-sale account. These are allegations in the lawsuit, not findings by the court.
Who is named in the lawsuit?
The defendants are Coffee Bean Syracuse LLC, Mohammed Alsaidi and Emad Alzokari. Haraz Coffee House Franchising LLC filed the case on Sept. 25 in Onondaga County.
Could Haraz take over the cafe’s location?
Haraz is asking the court to require cooperation with a potential transfer of the lease. The report does not say that a transfer has happened or that Haraz plans to reopen the cafe there.
Has the court ruled on the dispute?
The source report gives no ruling or hearing schedule. The claims about the franchise agreement and the requested post-termination restrictions remain unresolved.
Source: rss
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