Risk Score
Pending analysis
Investment Range
$134,100 - $203,250
Franchise Fee
$30,000
Min Cash Required
$12,000
Business Summary
Wateria operates retail water stores under the name Wateria. These stores sell purified, alkaline, and oxygenated drinking water that is made on the premises, along with water dispensers and related accessories.
Corporate History
Wateria CA, LLC was organized on June 28, 2022, as a California Limited Liability Company. Wateria CA, LLC functions as a master franchisee and licensee of Yesone Corporation, a long-established franchisor based in Whittier, California, which has over 31 franchised retail stores in Southern California. Wateria CA, LLC has been granted the right to operate and sublicense the Wateria business format and system to franchisees. Wateria CA, LLC has not offered any franchises prior to this disclosure document, indicating that 2024 is its inaugural year for offering franchises.
Financial Overview
Investment Range
$134,100 - $203,250
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$12,000
Marketing %
2%
Equipment Costs (Low)
$65,000
Equipment Costs (High)
$119,000
Working Capital
$12,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Wateria CA, LLC is a newly organized company, formed on June 28, 2022. As of December 31, 2023, Wateria CA, LLC has not generated any revenue from sales or franchise operations, showing a net loss in both 2022 and 2023. The company's operations have been funded by capital contributions from its members, with $240,000 contributed in 2022 and no additional contributions in 2023. The auditors issued an unqualified opinion, indicating that the financial statements present fairly, in all material respects, the financial position in accordance with generally accepted accounting principles. However, given the lack of revenue and operating losses, Wateria CA, LLC's financial health is currently reliant on its members' capital.
Financing Details
Wateria CA, LLC does not offer any direct or indirect financing to its franchisees. Wateria CA, LLC also does not provide any guarantees for commercial lease agreements, promissory notes, or any other legal obligations that franchisees may incur during the setup or operation of their franchise.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
1,050
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Wateria CA, LLC has no litigation history to report. Neither Wateria CA, LLC nor any person identified in Item 2 of this Franchise Disclosure Document has been involved in any litigation or is under any current effective order from a National Securities Association or National Securities Exchange.
Bankruptcy History
Wateria CA, LLC has no bankruptcy history to report. No person identified in Items 1 or 2 of the Franchise Disclosure Document has been involved as a debtor in proceedings under the United States Bankruptcy Code or has filed any foreign bankruptcies.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Wateria franchisees must meet several conditions. They must not be in default under any agreement with Wateria, have the ability to extend their commercial lease for the Wateria Retail Store through the renewal term, and provide written notice of their intent to renew between six and twelve months before the current term expires. This notice must include a nonrefundable renewal fee of $5,000. Additionally, franchisees must demonstrate sufficient financial capacity to cover all expenses related to remodeling, upgrading, and other costs associated with the renewal process, and promptly comply with all document requests from Wateria to evaluate their renewal. Finally, franchisees are required to sign a new franchise agreement that is then-currently in use by Wateria, which may include terms materially different from their original agreement, and complete any required repairs, maintenance, and renovations to conform their store to current brand standards.
Training & Support Program
Franchisor Assistance
Before opening, Wateria provides assistance with location evaluation and approval, offers plans and specifications for the store's interior/exterior layout, signs, décor, fixtures, furnishings, and equipment. Wateria may require franchisees to use approved licensed architects and general contractors, and will provide a final inspection and authorization to open once all conditions are met. Franchisees are loaned a confidential operating manual and receive advice on construction, building layout, equipment, selection, training, purchasing, and inventory control. An initial manager training program is also provided. After opening, Wateria administers and expends marketing fees, provides operational and administrative materials, informs franchisees of manual modifications, offers additional training (which may incur a fee), shares knowledge on the Wateria System and new techniques, conducts inspections, and provides maintenance and repair services for the Wateria System.
Initial Training Hours
23
Training Location
Corporate office or corporate-owned store or another location designated by Franchisor
Ongoing Support
After opening their Wateria franchise, franchisees receive continuous support. Wateria administers marketing fees to promote the brand and stores. They provide ongoing operational and administrative materials, including equipment and inventory lists and system operation methods. Wateria also communicates any modifications to the operating manual, product menus, equipment, signage, or reporting methods. Additional training programs are available, though Wateria reserves the right to charge a fee for these. Franchisees benefit from Wateria's knowledge regarding the Wateria System, new techniques, and improvements in store design, management, and sales promotion. Regular inspections of the franchised business are conducted, and Wateria provides necessary maintenance and repair services for the Wateria System on a monthly basis, at the franchisee's cost unless exceptions apply.
Franchise Requirements
Ideal Candidate Profile
Wateria does not explicitly describe a specific 'ideal candidate profile' in terms of prior industry or management experience, or specific personality traits beyond general business acumen. However, Item 15 requires the franchisee to designate a qualified 'Operating Principal' who must devote substantial time and adequate efforts to operate the Wateria Franchised Business. This Operating Principal must also own at least a 50% equity interest in the franchisee entity, unless waived by Wateria, and cannot have an interest or business relationship with any of Wateria CA, LLC's competitors. The business must always be under the on-site supervision of either the Operating Principal or a store manager.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Wateria grants a non-exclusive territory that will be an area of at least two (2) miles from the Wateria Retail Store. The specific boundaries of this territory are proposed after Wateria approves the franchise location, considering factors such as population size, persons per household, income level, residential/commercial mix, population age, traffic patterns, parking, access issues, neighboring business mix, rent and leasing terms, size, appearance, and physical characteristics of the premises, and the presence of any other nearby Wateria Retail Store.
Staffing Notes
Wateria requires that the franchised business must, at all times, be under the on-site supervision of the Operating Principal or a store manager. Franchisees are responsible for training all newly hired employees in the operation of the Wateria Retail Store prior to opening. Franchisees must also adequately staff during each shift with trained employees and continuously operate the business at its maximum capacity for at least the minimum number of days and hours specified by Wateria. Wateria specifies operating hours from 9:00 a.m. to 8:00 p.m., seven days a week, with exceptions for New Year's Day, Thanksgiving Day, and Christmas Day.