First WatchFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A First Watch franchise requires a total initial investment of $1.2M – $2.0M, including a $40K franchise fee and an ongoing 4.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 12 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $1.2M – $2.0M
- 45th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 474
- 47th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
Only 0.0% of 12 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 108 to 88 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $1.2M – $2.0M including a $40K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 33/100. SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 22.7% CAGR over 3 years with 474 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- First Watch Franchise Development Co.
- Parent company
- First Watch Restaurants, Inc.
- Ultimate parent
- First Watch Restaurant Group, Inc. (controlled by AI Fresh Holdings Limited Partnership, owned by investment funds managed by Advent International Corporation)
- CEO title
- Chief Executive Officer and President
- Christopher A. Tomasso
- CEO experience
- 2006 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 8725 Pendery Place, Suite 201, Bradenton, FL 34201
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $342.4M
- vs $601.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
First Watch is a fast-casual breakfast, brunch, and lunch restaurant chain. Franchisees operate full-service locations, managing food preparation, customer service, inventory, staffing, and marketing within a protected territory while paying 4% royalties on gross sales.
- CEO
- Christopher A. Tomasso
- Headquarters
- FL
- Founded
- 2005
- FDD year
- 2023
- States available
- 29
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $30K | $100K |
| Equipment, build-out, other | $1.1M | $1.9M |
| Total initial investment | $1.2M | $2.0M |
Source: First Watch 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.2M – $2.0M
- Near category avg vs category
- Liquid capital req'd
- $30K – $100K
- Better than avg vs category
- Franchise fee
- $30K – $40K
- Better than avg vs category
- Royalty
- 4.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 5.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Training fee | $5K |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Total fee load | 5.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How First Watch Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 474
- Opened
- 14
- 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
- 366
- Corporate units in the system
- % franchised
- 23%
- vs corporate-owned
- Multi-unit owners
- 16.7%
- Net growth (yr3)
- +14.9%
- Net unit change last year
- 3-yr CAGR
- +22.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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.
- Total loans
- 12
- Loan volume
- $9.9M
- Median loan
- $980K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into First Watch's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 12 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
First Watch presents moderate-to-cautious risk due to high capital requirements, undisclosed profitability metrics, and lack of financial performance data (Item 19), making ROI validation impossible before investment.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 33 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — cannot verify if $1.2M-$2M investment generates positive ROI
- 02MINORHigh initial investment ($1.2M-$2M) with 4% royalty requires substantial sales to break even; no average unit volume provided
- 03MINOR14.9% YoY unit growth is solid but system size (474 units) is relatively small; vulnerability to localized economic downturns
- 04MINORFranchise fee ($40K) low relative to total investment, suggesting high operating costs and thin margins
- 05HIGHNo going concern disclaimer listed, but lack of financial transparency raises questions about franchisor stability and franchisee profitability
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 |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Bradenton, Florida |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 400 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- POS system
- Aloha
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
First Watch · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a First Watch franchise?
The total investment to open a First Watch franchise ranges from $1.2M – $2.0M, 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 First Watch franchise owners earn?
First Watch does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is First Watch's franchise failure rate?
Based on SBA 7(a) loan data, First Watch has a charge-off rate of 0.0% across 12 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many First Watch franchise locations are there?
As of their most recent FDD filing, First Watch has 474 total units in the United States, including 108 franchised units and 366 company-owned units. 14 new units were opened in the latest reporting year.
Is First Watch a good franchise to buy?
FranchiseVerdict rates First Watch as a A-grade franchise with a risk score of 33 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.
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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.