"A Fresh Idea"
The First Watch Story

Concept
In today’s economy, the restaurant business has seen two years of unprecedented challenges. Same store sales for most casual diners are down. Not many concepts have seen AUV growth in the last two years, let alone the last 25 years.

First Watch Has 25 Consecutive Years of Same Store Sales Growth.
First Watch Restaurants Inc., the largest, privately owned, daytime-only restaurant company in the United States, has set the standard for quality daytime dining since its inception in 1983 and is one of the hottest concepts available today.

With more than 25 years of proven operational expertise, powerful brand identity and customer loyalty, First Watch provides a unique product and business model. We offer strong unit economics, lower food and investment costs compared to other casual dining restaurants, a unique, award-winning and craveable menu and support every step of the way.

And now, we’re making our great concept available to well-capitalized, experienced restaurant operators who have a proven track record of success, a desire to be part of one of the hottest concepts available and the ability to own and operate a minimum of three restaurants. This stringent criterion ensures that our franchisee community will be made up of like-minded restaurateurs committed to the success of their individual businesses, and ultimately the successful growth of the First Watch brand.

What does it mean to be part of the First Watch family? It means being part of a concept that revolves around delivering an excellent dining experience in a smoke-free, clean and attractive environment, featuring earth tones and comfortable seating. Each of our restaurants offers complimentary newspapers and free Wi-Fi Internet access. What really sets First Watch apart is our company's philosophy of doing whatever it takes to make a customer's visit memorable. First Watch strives to provide unexpectedly extraordinary experiences every day, through a commitment of always taking care of "YOU FIRST!"^SM

Menu
Breakfast is the new dinner. It is also the fastest-growing daypart and First Watch is strategically positioned to lead the segment with a menu featuring traditional favorites – like eggs, pancakes, soups, salads and sandwichesas well as unique signature items such as the Chickichanga®, Crepeggs^TM, and the Bacado Omelette^TM.

We’ve always been health conscious, offering low- calorie, low-cholesterol and even gluten-free options on our menu's "Healthier Side"– such as egg white and vegetable omelettes, fresh fruit crepes and the signature Power WrapTM. As part of its commitment to customers, First Watch always accommodates special requests.

History
First Watch was founded in 1983 in Pacific Grove, Calif., on the simple concept of putting customers first. The company moved to the Sarasota/Bradenton area of Florida in 1986.

The restaurant's name is inspired by a nautical reference to the first shift of the day. Every day at First Watch, the restaurant crew begins at the crack of dawn, slicing fresh fruit and vegetables, baking muffins and whipping up French Toast batter from scratch. Close to 26 years after opening, we take our commitment to service and freshness just as seriously as it did on day one.

Acclaim
The specialty breakfast category … WE OWN IT. Continually receiving recognition all over the nation, the best awards First Watch receives are those chosen by customers themselves. For 17 consecutive years, First Watch has been a recipient of Sarasota Magazine's Reader's Choice Awards, in such categories as "Best Breakfast," "Best Power Brunch" and "Best Healthy Restaurant." The Orlando Sentinel and Orlando Magazine awarded First Watch "Best Breakfast" destination in recent reader's polls, while the St. Louis Senior Circuit proclaimed, "First Watch gets a five-star rave." We’ve also named "Best Breakfast" by Columbus Magazine, First Watch continues to accumulate accolades in both new and existing markets.

This past year, our customers gave us one of the highest honors possible in the Consumer Reports survey. In a survey of almost 70,000 consumers, we won the highest ratings of any restaurant in any category. That continued customer feedback and loyalty are the primary reason for our 26 years of success.

Sales
First Watch has had positive same-store sales growth for an impressive 25 consecutive years. Total sales in 2007 were approximately $72 million, growing to $80 million in 2008.

Our recipe for success is unique and compelling.   With lower initial investment costs, a labor model that is built on operating hours of 7:00 am to 2:30 pm and average units volumes of approximately $1.2MM, we offer our franchisees a winning formula. What’s more, we own and operate over 70 of our own restaurants, so we are extremely vested in your success and the bottom line matters as much to us as to our franchisees.

Hours of Operation
We’re open year-round from 7 a.m. to 2:30 p.m., excluding Thanksgiving and Christmas Day.

Locations
First Watch and our franchisees operates 80 restaurants in 11 states and Washington, D.C., including Arizona, Florida, Kansas, Missouri, Ohio,  Kentucky, Oklahoma, Pennsylvania, Virginia, West Virginia and Maryland. We are continuing our corporate development in our core markets, but we are looking for great franchise partners as well. We are offering franchise opportunities in most states; request information for more details.

Average Unit Size
The average location is between 3,200-4,000 square feet, with a minimum capacity of seating of 120 patrons and 25 tables.

Franchisee Requirements
Franchisees must have the desire to be part of something fresh and unique. A franchisee must have a net worth of at least $750,000 and the resources available to develop a minimum of three First Watch restaurants in his/her designated area. We’re looking for restaurant operators who know the business and are ready to learn our systems. We welcome investment groups with an experienced operator ready to grow with us.