First Watch closes $75M deal to acquire 21 franchise locations

National daytime dining leader First Watch Restaurant Group has closed a $75 million deal to acquire 21 of its franchise locations in North Carolina.

The deal, with east Manatee County-based First Watch’s largest franchisee partner, was initially announced in January and includes corresponding development rights, The name of the franchisee wasn't disclosed.

Buying franchise locations is part of a long-term strategy at the company, says CEO and President Chris Tomasso. “These 21 restaurants are expected to generate average unit volumes and restaurant level operating profit margins in line with our company-owned restaurants, and the associated development rights represent white space in this key market area for us to grow organically for years to come,” Tomasso says in the release. “Further, this acquisition fortifies our organization and strengthens our ranks as we welcome more than 600 new employees into our corporate-owned system and You First culture – a responsibility that’s very important to us.”

First Watch has now acquired 44 total franchised restaurants in 17 designated market areas across six acquisitions since May 2023. 

First Watch operates more than 520 restaurants in 29 states and employs more than 15,000 team members nationwide. First Watch reported $891.55 million in revenue in 2023.