About NAPA Kitchen & Wine Franchise
NAPA Kitchen and Wine is an upscale, wine-centric, full-service restaurant franchise featuring a large selection of wines, a sushi bar, raw oysters, handcrafted martinis, and proprietary food and beverage recipes.
Franchisees operate sit-down restaurants serving small plates and full entrees including hand-cut seafood and steaks, sushi, oysters, salads, and pasta using fresh, locally-sourced ingredients.
The restaurants also feature a self-serve wine lounge and tasting bar, wi-fi access, and a comfortable contemporary atmosphere targeting men and women ages 21-65 with household incomes above $100,000.
NAPA Kitchen & Wine Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 4.5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.5% of Gross Sales | National brand fund |
| Total Investment Range | $2,019,200 – $3,371,000 | Includes build-out, inventory, working capital |
The investment range of $2.0M–$3.4M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4.5% of Gross Sales) and marketing fee (1.5% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $35,000 |
| Pre-Opening Trainer Payroll | $20,000 | $40,000 |
| Travel Expenses for Trainers | $1,500 | $19,000 |
| Additional Initial Training | $0 | $2,000 |
| Leasehold Improvements | $1,500,000 | $2,500,000 |
| Furniture, Fixtures and Equipment | $250,000 | $400,000 |
| Signage | $14,000 | $25,000 |
| POS System, Computers, Printers, Hardware and Software | $14,000 | $20,000 |
| Small Wares | $30,000 | $40,000 |
| Inventory | $60,000 | $80,000 |
| Televisions | $1,000 | $2,500 |
| Menus | $1,200 | $1,500 |
| Décor Pictures | $5,000 | $15,000 |
| Prepaid Rent and Security Deposit | $6,000 | $19,000 |
| Miscellaneous Deposits | $2,000 | $10,000 |
| Travel, Living Expenses and Salaries During Training | $21,500 | $35,000 |
| Opening Parties | $4,000 | $6,000 |
| Legal and Accounting Fees | $4,000 | $20,000 |
| Architect | $40,000 | $50,000 |
| Initial Advertising | $4,000 | $6,000 |
| Interior Design | $20,000 | $40,000 |
| Insurance (Initial Deposit) | $1,000 | $5,000 |
| Additional Funds - First Three Months | $100,000 | $150,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current initial franchise fee |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Audit Fee | $2,000 to $5,000 |
| Relocation Fee | $5,000 plus expenses |
| Insurance (if franchisor obtains) | Actual premium plus 25% service charge |
| Additional Training | $2,000 per person |
| Field Assistance | $350 per day plus expenses |
| Remedial Work | Actual costs plus 25% service charge |
| Management Fee | $2,000 per week |
| Prohibited Product/Service Fee | $300 per day |
| Returned Check/EFT Fee | $50 per occurrence |
| Interest on Late Payments | 1.5% per month or highest rate allowed by law |
| Nonsolicitation Fee | $5,000 |
| Liquidated Damages | 3 years of royalty fees or $75,000, whichever is more |
| Local Advertising Requirement | 2% of Gross Sales minimum |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 6 weeks (450 hours) initial headquarters training plus 2 weeks (80 hours) on-site pre-opening training |
| Classroom Training | 8 hours |
| On-the-Job Training | 444 hours |
| Training Location | Richmond, Virginia (headquarters and affiliate restaurant locations) |
| Additional Training | General manager and assistant general manager must complete 8 weeks of training (~56 hours/week). Kitchen manager must complete 5 weeks for Back of House subjects. Additional training available at $2,000 per person. Remedial training at $350/day plus expenses. Food handlers must complete food safety course; managers must complete ServSafe; FOH staff must pass alcohol training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected with exceptions for non-traditional venues |
| Exclusive Territory | No |
| Territory Size | Radius of 1 mile in urban areas to 5 miles in suburban areas around the approved site |
| Description | Franchisees receive a defined territory where the franchisor will not establish another NAPA Kitchen and Wine restaurant. However, the franchisor retains the right to establish locations in non-traditional venues (airports, hotels, resorts, military installations, campuses, casinos, theme parks, sports stadiums) within or outside the territory. The franchisor also reserves the right to sell products through other channels and to acquire competing businesses operating under different trademarks. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Renewal Conditions | Must provide renewal notice 12-24 months before end of term; must not be in default; must meet then-current financial qualifications and training requirements; must not have received more than 3 notices of default in any 24-month period; must demonstrate right to remain in possession of premises; must remodel and refurbish to then-current standards; may be required to sign a general release; must sign then-current franchise agreement (which may have materially different terms). |
| Transfer Fee | 50% of the then-current initial franchise fee |
| Transfer Conditions | Transferee must meet franchisor's standards; franchisee must be in compliance; transferee must sign new franchise agreement; restaurant must be upgraded to current standards; transferee personnel must complete training; franchisor must approve terms; franchisor has right of first refusal. |
| Termination for Cause | Immediate termination for: misrepresentation, failure to complete training, failure to open on time, unauthorized disclosure of confidential information, unauthorized use of marks, unauthorized transfer, failure to pay taxes, inadequate staffing, criminal conviction, bankruptcy/insolvency, abandonment, lease default. Curable defaults: 12 hours for social media removal; 72 hours for health/safety violations; 5 days for payment failures; 10 days for insurance lapses; 15 days for regulatory non-compliance; 30 days for other breaches. |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | No competing business within 5 miles of any NAPA Kitchen and Wine restaurant at the time of termination or expiration. During the term, no involvement in any competing business anywhere in the U.S. or any country where a NAPA Kitchen and Wine restaurant operates. Competitive business defined as any bar, restaurant, or food/beverage facility featuring wine as a primary menu item or serving sushi, sashimi, or raw shellfish. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | An approved operating manager must devote full time, attention, and effort to the franchised business and provide direct day-to-day supervision. If the franchisee is a sole proprietor, they serve as the operating manager. The operating manager and two other managers must complete the initial training program. Each owner of 10% or more must sign a personal guaranty. |
| Required Suppliers | Designated or approved suppliers required for food, beverages, restaurant equipment, furniture, POS system (Toast), reservations system (OpenTable), food ordering systems (PFG, Chef's Warehouse), music system (Programmed Pandora with Sonos), menus, uniforms, and various other supplies. 15-20% of establishment and ongoing expenditures must be from designated/approved suppliers. |
| Supply Restrictions | Franchisees must use only designated or approved suppliers for specified categories. Approval of alternative suppliers requires written request and franchisor evaluation within 60-90 days. Franchisor may revoke approval at any time. |
| Franchisor Revenue from Suppliers | DJB Hospitality LLC received rebates of $125,158 in the last fiscal year based on sales of certain items to company-owned and franchised Sedona Taphouse restaurants and the affiliate NAPA Kitchen and Wine restaurant. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer any direct or indirect financing. Neither the franchisor nor any affiliate receives payment for the placing of financing. The franchisor does not guarantee or co-sign notes, leases, or any other obligations. |
NAPA Kitchen & Wine Franchise Earnings — Item 19
NAPA Kitchen & Wine does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
NAPA Kitchen & Wine Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
NAPA Kitchen & Wine System Growth
NAPA Kitchen & Wine currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 1 |
| 2023 | 0 | 0 | 1 |
| 2024 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 1 states: VA
Franchisor Financials (Item 21)
Audited by Keiter CPAs & Consultants for year ending December 31.
NAPA Kitchen & Wine Franchise — FAQ
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