First Watch Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
First Watch is a daytime-only, full-service franchise serving breakfast, brunch, and lunch made from fresh ingredients. Franchisees operate restaurants open mornings through mid-afternoon, managing kitchen, service, and staffing.
FranchiseVerdict summary · 2026
A First Watch franchise requires a total initial investment of $1.2M – $2.0M, including a $30K – $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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $1.2M – $2.0M
- 48th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 4.0%
- 2nd pct Service Resta…
- Units
- 474
- 49th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $1.2M – $2.0M including a $30K franchise fee, 4.0% ongoing royalty.
- Item 21: First Watch Franchise Development Co. does not prepare stand-alone financial statements; figures are the audited consolidated statements of its ultimate parent/guarantor First Watch Restaurant Group, Inc. (FWRG) for FY ended Dec 25, 2022 (yr1) and Dec 26, 2021 (yr2). Total revenues = restaurant sales ($719,181K) + franchise revenues ($10,981K, shown as other_revenue). Audited by PwC (Tampa, FL; auditor since 1999). All amounts in thousands of USD.
- Verdict A (Strongest tier), verdict score 84/100 (higher is better). SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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
Corporate structure & franchisor financials
- Legal entity
- First Watch Franchise Development Co.
- Parent company
- First Watch Restaurants, Inc.
- Ultimate parent
- First Watch Restaurant Group, Inc.
- 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, Florida 34201
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $730.2M
- vs $601.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Christopher A. Tomasso
- Headquarters
- FL
- Founded
- 1983
- FDD year
- 2023
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 72% above the typical full-service restaurants franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $30K | $100K |
| Equipment, build-out, other | $1.2M | $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
- Middle of category vs category
- Liquid capital req'd
- $30K – $100K
- Top 40% of category vs category
- Franchise fee
- $30K – $40K
- Top 40% of category vs category
- Royalty
- 4.0%
- percentage · 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 | $15K |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Inventory (initial) | $7K – $12K |
| Total fee load | 5.5% of rev |
Financial Performance
Item 21: First Watch Franchise Development Co. does not prepare stand-alone financial statements; figures are the audited consolidated statements of its ultimate parent/guarantor First Watch Restaurant Group, Inc. (FWRG) for FY ended Dec 25, 2022 (yr1) and Dec 26, 2021 (yr2). Total revenues = restaurant sales ($719,181K) + franchise revenues ($10,981K, shown as other_revenue). Audited by PwC (Tampa, FL; auditor since 1999). All amounts in thousands of USD.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 5.5% — below the Full-Service Restaurants average of 7.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 22.7% CAGR over 3 years across 474 units — operators are staying and new ones are joining.
Multi-unit rate
Only 17% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How First Watch Compares
Is the system healthy?
Source: FDD 2023 · Item 20
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 (3-yr)
- +22.7%
- Net unit change over 3 years
- 3-yr CAGR
- +22.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 14
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
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
- Typical loan rate
- 6.8%
- avg rate to borrowers
- Franchised industry avg
- 13.2%
- brand beats franchise avg ↓
- Jobs supported
- 156
- 4.2 per loan
- Lender concentration
- 25%
- top lender's share
Borrower mix: 75% went to startups / new businesses, 25% to established operators
Franchise vs independent — in full-service restaurants, franchised businesses charge off at 13.2% vs 9.7% for independents — franchising is associated with 36% higher SBA default risk in this category.
Top lenders financing First Watch franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 84 / 100 verdict
- 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
- 05MINORNo 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
What are you signing up for?
Ongoing fees run about 5.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| 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 | AAA office closest to Bradenton, Florida |
| Jury trial waiver | Yes |
| Governing law | FL |
| 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
- Certified Training Restaurant (throughout U.S.) and corporate headquarters
- Ongoing training
- Required
- Time to open
- 14 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Aloha POS / Restaurant Magic Data Central
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha POS / Restaurant Magic Data Central
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 $30K. 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 verdict score of 84 out of 100 (higher is better), 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
Are you the franchisor?
If you represent First Watch, you can request corrections or provide updated information.
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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.