So Napa -- Local Wine Bar Goes Big Time

And, if their paperwork is in place, they could be selling franchises as early as next week.

"This is our chance to grow nationally, with other people's money," Barrington said.

The two say their combined business expertise, the initial success of SoNapa's first location and the absence of head-to-head competition will translate into profits for them and for the people who invest in the concept.

"We have a unique approach," Kosmas said. "We have a full menu, a retail wine store, a wine bar and a membership club. And it costs less to get into this business than into a Subway (restaurant)."

One national franchising expert said the SoNapa owners need a longer track record before they start selling franchises.

"There is no way I would franchise a business that has only been in business for six months," said Nick Bibby, principal at The Bibby Group in Shreveport, La. "Potential investors need to examine this very carefully. But I give it a thumbs down."

Bibby, a former operations analyst for ITT Corp. who runs a consulting firm and teaches "entrepreneurship" at Louisiana State University, said Barrington and Kosmas may have the skeleton, but not the structure in place. "You don't franchise until you are proven," he said.

But Paul Samson, founder and president of four-year-old The Franchise Edge in Tampa, said SoNapa is "uniquely positioned" to succeed. Samson's company is acting as SoNapa's consultant, assisting in the process of getting the business ready to market.

"There are people who love wine and want to operate a business, but they don't necessarily want to operate a big business," Samson said. "When you peel back the onion, you see that they (Barrington and Kosmas) have integrated small retail, membership and a casual, by-the-glass wine bar in an efficiently designed package.

"They are bright guys. And they are doing a great job."

SoNapa combines subtle lighting, dark wood and stone to create an intimate atmosphere in its 1,500-square-foot store. Menu items range from $5.50 appetizers to $16.50 entrees and also include a variety of soups and salads.

The company offers 25 wines by the glass and more than 100 by the bottle. All wines come from Sonoma County or the Napa Valley in California -- thus the name.

So far, SoNapa's clientele is mostly women ages 35 to 65, Barrington said. Lunchtime business is good. And the restaurant draws from the area's tourist trade.

Barrington said a "turnkey" store, ready to open for business, costs $200,000. SoNapa takes a 5 percent royalty and is the exclusive wine supplier to its franchises. Storeowners must carry a core list of wines SoNapa selects, but they are free to add as many wines as they like beyond that.

With their franchises, investors get business advice from Barrington and Kosmas and construction advice from Barrington's brother, Luke, president of Barrington Construction.

Adam Barrington holds a doctorate in business leadership and worked for several years with Outback Steakhouse and its Bonefish Grill operation. He trained as a sommelier and taught at the Orlando Culinary Academy. His doctoral dissertation was on the effect of service on customer loyalty.

Kosmas works in the resort and hospitality industry, specifically marking and finance, with companies such as Weston and Sheraton. He handles the branding of the business.

The two see franchising as a way to expand rapidly without putting up a lot of their own capital.

Kosmas said there are three ways to build a brand: go public and sell stock, build corporate stores or franchise. Franchising allows SoNapa to "get to market faster," he said.

Barrington said he hopes to sell five franchises in the first year and 125 in five years.

"This is timely," Kosmas said. "It comes when confidence in financial instruments and investments are low. This is a way to invest and have a social aspect, as well. And we believe there will be a good return on investment."