Watermill Express

Watermill Express Franchise FDD, Costs & Fees (2025)

Water and ice vending franchise providing purified drinking water and ice through self-service vending machines, offering convenience and quality hydration solutions.

Watermill Express, established in 1984 and headquartered in Brighton, Colorado, has positioned itself as a trailblazer in the water vending industry. Since launching its franchise model in 1989, the company has expanded to over 1,300 locations nationwide, making it the largest drive-up provider of pure drinking water in the United States.

Operating 24/7, its vending stations dispense water and ice purified through a meticulous 12-step process, including advanced reverse osmosis, to guarantee exceptional safety and quality.

Setting itself apart, Watermill Express offers an eco-conscious alternative to bottled water, aiming to minimize plastic waste while providing cost-effective hydration.

Its proprietary technology features self-cleaning water dispensers with ultraviolet disinfection, ensuring top-tier quality control with continuous monitoring. While focused on U.S. expansion, the company currently has no plans for international franchising.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount (Low – High)
Initial Franchise Fee $75,000 – $75,000
Construction Costs $69,600 – $184,500
Watermill Express Stations $375,000 – $375,000
Watermill Express Station Sales Tax $30,900 – $30,900
Watermill Express Station Shipping $7,575 – $27,825
Watermill Express Station Unloading Crane $1,305 – $10,359
Opening Supplies Inventory $14,000 – $30,000
Office Equipment and Tools $1,500 – $6,000
Grand Opening Marketing Costs $5,700 – $6,000
Deposits, Licenses, and Bonds $900 – $11,100
Training $600 – $3,000
Additional Funds – 3 Months $9,000 – $18,000
TOTAL ESTIMATED INITIAL INVESTMENT $591,080 – $777,684

Franchise Disclosure Document

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Competitors

Below are some of

Watermill Express

key competitors in the

Other Food

sector.

Started franchising
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Franchise fee

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Royalty fee

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Gross Profit

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Home-based

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Passive investment

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FDD
Watermill Express
1994
314
+
0%
0%
$75,000
7.00%

$599,000

-

$821,000

n.a.

$42,000

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n.a.

n.a.

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n.a.

n.a.

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Yes
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Yes
No
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No
1993
27
+
4%
4%
$30,000
7.00%

$242,000

-

$829,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2022
18
+
n.a.
n.a.
$50,000
5% - 6%

$1,539,000

-

$4,819,000

Upgrade

n.a.

$2,889,000

n.a.

n.a.

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n.a.

n.a.

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2020
13
+
n.a.
n.a.
$30,000
5.00%

$192,000

-

$410,000

Upgrade

n.a.

$1,454,000

n.a.

n.a.

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n.a.

n.a.

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2011
276
+
n.a.
n.a.
$50,000
30% - 40%

$62,000

-

$327,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2019
16
+
700%
700%
$35,000
6.00%

$258,000

-

$516,000

Upgrade

n.a.

$558,000

n.a.

n.a.

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n.a.

n.a.

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No
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No
No
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No
2020
6
+
200%
200%
$59,500
4% - 6%

$429,000

-

$723,000

Upgrade

n.a.

$1,591,000

45.7%

n.a.

Upgrade

8.9%

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes

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Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

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Profit margin

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Franchise Disclosure Documents
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Priority support

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A comprehensive and transparent look at franchising finances. The inclusion of profit margins and disclosure documents offers insights you can’t find elsewhere. Essential for anyone considering a franchise investment.

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Training

Watermill Express provides a comprehensive training program to its franchisees.

  1. Initial Training Program
    • Provided for the opening of the first Watermill Express Station.
    • Includes webinars, on-site training, and practical sessions.
    • Attendance by the franchisee, General Manager, or Operations Manager is required.
    • Completion of the program is mandatory before opening the station.
    • Not available for subsequent stations.
  2. Ongoing Training
    • May include seminars, refresher courses, and training for newly hired personnel.
    • Attendance is typically voluntary but can be made mandatory by the franchisor once per year.
  3. Costs and Responsibilities
    • Franchisees are responsible for all costs, including transportation, wages, and accommodation for attendees.
    • The franchisor may charge fees for non-mandatory training programs.
  4. Additional Provisions
    • The franchisor reserves the right to require replacements or additional personnel to complete the training at their published rates.

Territory Protection

Watermill Express provides limited territorial protections to its franchisees. Under the Franchise Agreement, franchisees are granted an exclusive territory, typically a half-mile radius around their station, within which the franchisor will not establish or allow another franchisee to operate a Watermill Express station.

However, this exclusivity is strictly limited to the designated territory and does not extend to specific customer bases or broader market areas.

In the case of an Area Development Agreement, a franchisee may be assigned a larger development territory for opening multiple locations. This exclusivity lasts for the term of the agreement and depends on the franchisee meeting specific development milestones

Number of units

2023
Franchised units

314

315

314

Company-owned units

954

948

946

Total units

1268

1263

1260

Competitors

Potato Corner

Franchisees

?

27
+
4%
4%
Investment

?

$242,000 - $829,000

Hawaiian Bros Island Grill

Franchisees

?

18
+
n.a.
n.a.
Investment

?

$1,539,000 - $4,819,000

Shah's Halal

Franchisees

?

13
+
n.a.
n.a.
Investment

?

$192,000 - $410,000

Yummi Go Gourmet

Franchisees

?

276
+
n.a.
n.a.
Investment

?

$62,000 - $327,000

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