
First Watch specializes in award-winning, made-to-order Breakfast, Brunch and Lunch. A recipient of more than 200 “Best Breakfast” and “Best Brunch” accolades, First Watch offers traditional favorites, such as omelets, pancakes, sandwiches and salads, and unique specialty items like Quinoa Power Bowls, Avocado Toast and the Chickichanga. First Watch was named the 2016 top Family Dining restaurant by Consumer Reports, a 2015 Top Consumer Pick by Nation’s Restaurant News and a 2014 Top Franchise Value by FSR Magazine. First Watch is the largest and fastest-growing daytime-only restaurant concept in the U.S. with more than 295 restaurants in 26 states, including more than 195 First Watch restaurants, 97 The Egg & I restaurants, one The Good Egg restaurant in Phoenix and one Bread & Company restaurant in Nashville.
What is the upfront requirements to own an First Watch Restaurants franchise?
First Watch Restaurants has a franchise fee of up to $40,000, with a overall upfront investment range from $939,950 to $1,770,300.
- Initial Franchise Fee: $40,000
- Total Investment: $939,950 to $1,770,300
- Working Capital: $30,000 to $100,000
- Royalty Fee: 4.0%
The upfront purchase price of any franchise opportunity includes many fees. Check out this franchise opportunity to better understand the initial costs required to buy an First Watch Restaurants, such as franchise fees, leasehold improvement costs, pre-opening advertising, and technology fees. It should be noted that, franchisors must to provide you with details about all upfront fees. These fees include those that are actually paid when signing the franchise agreement and commitments to fees you are required to pay.
How much does an First Watch Restaurants franchisee make?
As with any new franchised business, the franchise owner’s salary and the revenue from a First Watch Restaurants business depends on many factors. One way to confirm the potential revenues or profits earned from a First Watch Restaurants franchise investment is to review the franchisor’s Item 19 within their FDD. Typically, profits and owner’s salary are equitable to the size of the investment and number of locations you own. Demand for your products, the labor costs, commercial lease rates and several other variables also play a large role in your bottom line and your personal salary
How many franchise locations does First Watch Restaurants franchise system have?
As of the 2022 Franchise Disclosure Document, there are 94 franchised First Watch Restaurants locations throughout the USA.
Are there any First Watch Restaurants franchise opportunities in my area?
Based on 2022 FDD data, First Watch Restaurants has franchise locations in 17 states. There may be no locations in several states as each franchise plans their growth strategy differently. Certain states also require franchise companies to register their franchise opportunity and file their Franchise Disclosure Document (FDD) with state examiners prior to awarding franchise opportunities to residents in that state. These registration states have examiners review a franchise company’s FDD to confirm it satisfies state regulatory requirements. In addition to registration states, additional states have enacted supplemental franchise or business opportunity laws that require franchise companies to file their franchise within the state. In most instances the filing is simply a notice with the state. Unlike franchise registration states, the franchise filing states do not review the FDD.
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Based on our research First Watch Restaurants is expanding into new markets and might be available near you. While planning your franchise purchase, you always need to be considering what is a good location for my business. Review the potential customer base to assess that your city has a need or customers for this franchise. Even the most popular franchises have states that they are not successful in. The reasons why a specific franchised location can fail are plentiful. You need to analyze not only the franchised business itself, but review locations where you believe it has a more profitable opportunity.
One of our franchise advisors will have detailed knowledge about this franchise opportunity.

First Watch Cash Flow Statement Key Insights
In 2020, First Watch had a net income of ($49.6) million, but their cash, cash equivalents and restricted cash were $39 million at the end of 2020 an almost 40% increase from the cash they started with at the end of the year. And this extra cash flow can also be seen from their financing activities as First Watch received $40 million in proceeds from preferred stock issuance.
How Many First Watch Units Have Opened and Closed?

FIRST WATCH’S COMPETITORS INCLUDE BROKEN EGG CAFE, IHOP, AND WAFFLE HOUSE.
As seen in the table above both First Watch franchise locations and company-operated locations have increased over the past two years. Therefore, in 2020 there was an increase of 22 company-operated restaurants and 19 franchise locations. So, these numbers indicate the business overall is expanding.

Conclusion
While First Watch Restaurants did see losses of almost $50 million in 2020, the company also had to react and adjust to the limited demand caused by COVID-19 for three quarters of 2020. Franchise locations during this time did grow by 19 in 2020. And First Watch has the potential for a promising future as the company recently filed for an Initial Public Offering (IPO) which would raise large amounts of additional capital to expand and increase their market share in the daytime restaurant industry.
First Watch is already in a well-established market. The restaurant business is highly competitive, and competition among businesses serving food is rapidly increasing.
We strongly recommend you speak to at least 5 First Watch franchisees to better understand the financials (see questions to ask).
Think First Watch is the right franchise for you, or are you interested in other franchise opportunities in the food and beverage industry?
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Ready to explore the world of franchising with global famous brands? Get in touch with the team at Star Brands Consulting Ltd today to learn more about our services and how we can help you achieve your franchising goals. Together, let’s turn your dreams of franchise ownership into a reality. To find out more about buying a franchise and how we can assist you, e-mail us at info@starbrandsconsulting.com.