Coffee and Water LabFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Coffee and Water Lab franchise requires a total initial investment of $441K – $838K, including a $40K franchise fee and an ongoing 4.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $441K – $838K
- 77th pct Service Resta…
- Avg gross sales
- $1.4M
- 44th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 1
- 3rd pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $441K – $838K including a $40K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.4M/year.
- Verdict A (Top Quintile) with a risk score of 37/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Next Wave Coffee, LLC
- Incorporated in
- WY
- HQ
- 30 N Gould St, Ste R, Sheridan, WY 82801
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
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.
- CEO
- Luis Pedroza
- Headquarters
- WY
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $60K | $100K |
| Equipment, build-out, other | $341K | $698K |
| Total initial investment | $441K | $838K |
Source: Coffee and Water Lab 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$238K
17.0% margin
Unlevered ROIC
33%
EBITDA / total invested capital
Payback
3.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $441K – $838K
- Below avg, review vs category
- Liquid capital req'd
- $60K – $100K
- Below avg, review vs category
- Franchise fee
- $40K – $40K
- Below avg, review vs category
- Royalty
- 4.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $3K |
| Training fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Total fee load | 5.0% of rev |
A 5.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate-owned outlet
- Sample size
- 1 units
- vs category median 28 · small
- Range (low → high)
- $1.4M→$1.4M
- Cohort dispersion (min → max)
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Coffee and Water Lab Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 37 / 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
| Initial term | 10 years |
|---|---|
| Territory type | Radius or political boundaries based on population |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 40,000 |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Sheridan, Wyoming |
| Governing law | Wyoming |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 13 hrs
- Training location
- On-site and at franchisor location
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- POS system
- Square POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square POS
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Coffee and Water Lab · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Coffee and Water Lab franchise?
The total investment to open a Coffee and Water Lab franchise ranges from $441K – $838K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Coffee and Water Lab franchise owners earn?
According to Item 19 of the Coffee and Water Lab FDD, the average gross sales per unit is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Coffee and Water Lab's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Coffee and Water Lab (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Coffee and Water Lab franchise locations are there?
As of their most recent FDD filing, Coffee and Water Lab has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is Coffee and Water Lab a good franchise to buy?
FranchiseVerdict rates Coffee and Water Lab as a A-grade franchise with a risk score of 37 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.