Waters Edge Winery & Bistro
Bottom line
- Total investment $577K – $1.3M including a $55K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $882K/year (median $585K).
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 WATERS EDGE WINERY & BISTRO unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 WATERS EDGE WINERY & BISTRO units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $7.9M purchase
Total debt
$6.3M
SBA $4.0M + senior + seller note
Overview
About
Franchisees operate wine bars and bistros featuring wine sales, dining service, and hospitality operations. Day-to-day activities include managing staff, sourcing wine inventory, food preparation/service, customer relations, event hosting, and maintaining compliance with alcohol licensing regulations. Revenue is typically split between wine retail/by-the-glass sales and food/beverage service.
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 · 17 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Contracting wine/bistro franchise system with regulatory history, undisclosed profitability, unprotected territory, and shrinking unit base presents high financial risk for new investors.
Score breakdown · what drove the 72 / 100 rating
- 01MEDUnit count declined 16.7% YoY (10 units total) — system is contracting, not growing
- 02MEDNo average net income disclosed — unable to verify profitability claims; only gross revenue of $881,555 provided
- 03MINORNo protected territory — franchisees face direct competition from same-brand locations and cannot defend market share
- 04HIGHGoing Concern status is FALSE — franchisor may face operational or financial viability challenges
- 05HIGHRecent litigation history including 2021 California regulatory consent order and 2023 trademark/breach settlement — indicates compliance and operational issues
- 06MINORHigh investment range ($577K–$1.3M) with declining unit performance — poor ROI indicators and high failure risk
- 07MINOR5-6% royalty on gross sales (not net) — franchisees pay royalties even during unprofitable periods
- 08MINORNo Item 19 financial performance representation — franchisor refuses to disclose historical unit profitability data
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
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
WATERS EDGE WINERY & BISTRO · FDD (2025) PDF