Waters Edge Winery & BistroFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A WATERS EDGE WINERY & BISTRO franchise requires a total initial investment of $577K – $1.3M, including a $55K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $882K[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $577K – $1.3M
- 36th pct Service Resta…
- Avg gross sales
- $882K
- 7th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 10
- 21st pct Service Resta…
- SBA default
- 12.5%
- 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
Franchised units fell from 12 to 10 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $577K – $1.3M including a $55K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $882K/year (median $585K).
- Verdict F (Bottom Quintile) with a risk score of 92/100.
- 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
- Legal entity
- Waters Edge Wineries, Inc.
- Incorporated in
- DE
- HQ
- 8560 Vineyard Avenue, Suite 408, Rancho Cucamonga, CA 91730
- Auditor
- CASHUK, WISEMAN, GOLDBERG, BIRNBAUM AND SALEM, LLP
- Audited financials
- Franchisor revenue
- $825K
- vs $688K prior year
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.
- CEO
- Ken Lineberger
- Headquarters
- CA
- Founded
- 2012
- FDD year
- 2025
- States available
- 6
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $10K | $50K |
| Equipment, build-out, other | $512K | $1.2M |
| Total initial investment | $577K | $1.3M |
Source: WATERS EDGE WINERY & BISTRO 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
$97K
11.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
10.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $577K – $1.3M
- Better than avg vs category
- Liquid capital req'd
- $10K – $50K
- Better than avg vs category
- Franchise fee
- $55K – $55K
- Near category avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $550 |
| Training fee | $4K |
| Transfer fee | $28K |
| Renewal fee | $5K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $882K
- Per unit, per year
- Median gross sales
- $585K
- Item 19 type
- gross_sales
- Sample size
- 9 units
- vs category median 13
- Range (low → high)
- $221K→$2.6M
- Cohort dispersion (min → max)
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Full-Service Restaurants averages
How Waters Edge Winery & Bistro Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 10
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 20.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -16.7%
- Net unit change last year
- 3-yr CAGR
- -28.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
- Continuity rate
- 81.7%
- Units that stayed open
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 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 loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $7.0M
- Median loan
- $873K
- average
- Charge-off rate
- 12.5%
- 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)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Litigation (Item 3)
Waters Edge Wineries, Inc. filed federal complaint against franchisee Wine Vibes, LLC and principals (Sherifat Lawal, Tamesha Hampton, Phelicia Colvin) on October 26, 2022 for breach of contract, trademark infringement, false designation of origin, misappropriation of trade secrets (DTSA/CUTSA), and unfair competition. Defendants countersued. Settled September 26, 2023 with $300,000 payment (reducible to $200,000 in installments if compliant). Also concluded: California Commissioner of Financial Protection and Innovation v. Waters Edge Wineries (Consent Order, November 10, 2021) for violation of undertaking regarding promissory note payment during registration period.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CASHUK, WISEMAN, GOLDBERG, BIRNBAUM AND SALEM, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 92 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Designated Area |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 2 |
View Item 3 litigation summary
Waters Edge Wineries, Inc. filed federal complaint against franchisee Wine Vibes, LLC and principals (Sherifat Lawal, Tamesha Hampton, Phelicia Colvin) on October 26, 2022 for breach of contract, trademark infringement, false designation of origin, misappropriation of trade secrets (DTSA/CUTSA), and unfair competition. Defendants countersued. Settled September 26, 2023 with $300,000 payment (reducible to $200,000 in installments if compliant). Also concluded: California Commissioner of Financial Protection and Innovation v. Waters Edge Wineries (Consent Order, November 10, 2021) for violation of undertaking regarding promissory note payment during registration period.
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- Orderport
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Orderport
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
WATERS EDGE WINERY & BISTRO · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a WATERS EDGE WINERY & BISTRO franchise?
The total investment to open a WATERS EDGE WINERY & BISTRO franchise ranges from $577K – $1.3M, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do WATERS EDGE WINERY & BISTRO franchise owners earn?
According to Item 19 of the WATERS EDGE WINERY & BISTRO FDD, the average gross sales per unit is $882K. The median is $585K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is WATERS EDGE WINERY & BISTRO's franchise failure rate?
SBA 7(a) loan charge-off data is not available for WATERS EDGE WINERY & BISTRO (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 WATERS EDGE WINERY & BISTRO franchise locations are there?
As of their most recent FDD filing, WATERS EDGE WINERY & BISTRO has 10 total units in the United States, including 12 franchised units and 0 company-owned units.
Is WATERS EDGE WINERY & BISTRO a good franchise to buy?
FranchiseVerdict rates WATERS EDGE WINERY & BISTRO as a F-grade franchise with a risk score of 92 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.