Coffee and Water Lab
Bottom line
- Total investment $441K – $838K including a $40K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.4M).
- Rated CAUTION with a risk score of 70/100.
- Emerging franchise — only 1 year of franchising with 1 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Coffee and Water Lab unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Coffee and Water Lab units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.4M purchase
Total debt
$6.7M
SBA $4.2M + senior + seller note
Overview
About
Franchisees operate a specialty café combining premium coffee service with branded water products or hydration-focused beverages. Day-to-day operations likely include customer service, inventory management of coffee/water products, equipment maintenance, and local marketing within their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Single-unit system with undisclosed financials and going concern issues presents extreme difficulty validating investment viability; franchisor stability is primary concern.
Score breakdown · what drove the 70 / 100 rating
- 01MINOROnly 1 unit in system with unknown growth trajectory indicates nascent/stalled expansion
- 02HIGHGoing Concern status is FALSE — suggests financial instability or uncertainty about franchisor viability
- 03MEDNet Income not disclosed — unable to validate profitability claims or ROI on $441k-$838k investment
- 04MINORMassive investment range ($397k spread) indicates unclear unit economics or inconsistent cost structure
- 05MINORSingle unit makes validation impossible — no comparable franchisee performance data
- 06MINOR4% royalty is low but irrelevant if franchisor cannot support franchise system growth
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Coffee and Water Lab · FDD (2025) PDF