WaterStation Technology

WaterStation Technology was a Washington-based water-vending equipment and business-opportunity company that marketed self-service purification machines and, during part of its operating history, active- and passive-owner franchise models. This page is retained as a historical FMS Franchise client profile and is not an advertisement for a currently available franchise or investment.

Historical Overview of WaterStation Technology

WaterStation Technology was formed in Washington in 2013 and operated from the Everett area. The company built and sold water-vending machines intended to purify and mineralize water on demand. Related entities provided machine management and servicing, while WST Franchise Systems was formed in 2017.

The historical concept promoted refillable water dispensing as an alternative to single-use bottled water. Machines were marketed for placement in grocery stores and other high-traffic locations where consumers could refill reusable containers.

WaterStation was previously included in FMS Franchise’s client portfolio. Because the underlying companies are no longer operating, this page now documents that historical relationship and directs readers to current public records.

How the Historical Business Model Was Presented

Historical marketing materials described two possible structures:

• An active-owner franchise model: The franchisee was expected to manage water-vending machines directly.
• A passive-owner model: Investors purchased machines and entered into service arrangements under which Water Station was expected to locate, install, operate, and maintain them.

Some third-party franchise and business-opportunity directories continue to display old investment amounts, equipment packages, unit counts, return claims, tax claims, or buyback descriptions. Those figures are not current franchise information and should not be used to make an investment decision.

Washington State Regulatory Action

On May 16, 2025, the Washington State Department of Financial Institutions Division of Securities issued Statement of Charges S-21-3226-25-SC01 involving Creative Technologies, LLC (identified in the order as Water Station Technology), Water Station Management LLC, WST Franchise Systems LLC, several individuals, and FranServe, Inc.

The agency’s published case summary states that the charges alleged:

• From approximately 2016 through 2022, Water Station and various salespersons offered and sold unregistered securities involving water-vending-machine purchases coupled with service contracts.
• At least 171 investors nationwide spent more than $129 million.
• Material information concerning the number and location of machines was not disclosed.
• Of nearly 15,000 machines purchased by investors, just over 6,000 allegedly existed.

These are allegations contained in the regulator’s Statement of Charges. Readers should review the complete order and subsequent official proceedings rather than relying on summaries.

A later consent order concerning one respondent states that WaterStation Technology, Water Station Management, and WST Franchise Systems ceased business operations. That consent order also states that the settling respondent neither admitted nor denied its findings and conclusions.

Bankruptcy and Operating Status

The Washington Statement of Charges reports that federal bankruptcy relief orders were entered concerning Water Station Management, Water Station Technology, and a related company, and that the proceeding was pending when the charges were issued. Bankruptcy and enforcement matters can evolve, so readers seeking the latest procedural status should consult current court dockets, the Washington DFI, and qualified legal counsel.

FMS is not presenting WaterStation Technology as an active franchise opportunity and is not accepting inquiries or applications on its behalf.

Why This Historical Page Was Corrected

The previous version of this page described WaterStation Technology as a growing, scalable, profitable franchise opportunity. Leaving those statements online without a status update could mislead readers and prospective investors. The page has therefore been revised to:

• Remove profitability, low-investment, expansion, and franchise-success claims
• State that the relevant companies ceased operations
• Link directly to the official regulator record
• Distinguish regulatory allegations from established company-status information
• Clarify that historical directory listings may be outdated
• Preserve an accurate record of the former client relationship

Due-Diligence Lessons for Franchise and Business-Opportunity Buyers

The WaterStation record illustrates why a “passive” or managed business opportunity requires additional scrutiny. Investors should independently verify the existence, ownership, location, operation, and revenue of every asset involved.

1. Confirm the Legal Structure

Determine whether the offer is a franchise, business opportunity, equipment sale, joint venture, security, managed service, or a combination of these. Marketing terminology does not determine the legal classification.

2. Check Regulatory and Court Records

Search state securities regulators, franchise administrators, federal and state court dockets, bankruptcy records, and relevant licensing agencies. Conduct these searches for the company, affiliates, executives, and sales intermediaries.

3. Review the Current FDD and Agreements

If the opportunity is offered as a franchise, obtain and review the current FDD and every related contract. Compare the franchise agreement, service agreement, equipment purchase agreement, financing documents, guarantees, and any addenda for conflicts.

FMS’s Franchise Disclosure Document guide explains what buyers should expect across the 23 disclosure items.

4. Verify Assets Independently

Do not rely solely on a seller’s spreadsheet, dashboard, photograph, or projected placement schedule. Confirm serial numbers, titles, purchase invoices, physical locations, host agreements, installation status, insurance, service records, and revenue records.

5. Test “Passive Income” Claims

Ask who performs the essential managerial work, who controls funds, how revenue is verified, and what happens if the management company stops operating. A return that depends mainly on another party’s efforts can also raise securities-law questions that require qualified counsel.

6. Validate Financing Representations

Confirm loan eligibility and permitted use directly with the lender and applicable government program. Do not treat directory inclusion, a broker’s statement, or prior approvals as proof that a specific structure qualifies.

7. Investigate Sales Intermediaries

Ask how brokers, consultants, referral sources, and sales representatives are compensated. Verify required registrations and evaluate whether commissions create conflicts of interest.

8. Speak With Investors and Former Participants

Contact a representative group rather than only references selected by the seller. Ask about asset delivery, placement timelines, revenue verification, service quality, financing, disputes, and exit attempts.

Questions to Ask About Any Managed Equipment Opportunity

• Who legally owns each machine or asset?
• Where is each asset installed, and can I inspect it?
• Who signed the host-location agreement?
• How are sales recorded and independently reconciled?
• Where are customer funds deposited?
• Who pays utilities, repairs, insurance, and replacement costs?
• What happens if the manager becomes insolvent or stops operating?
• Can I replace the manager or operate the assets myself?
• Are returns fixed, projected, guaranteed, or dependent on performance?
• What registrations or exemptions apply to the offering?
• Is any buyback promise secured, funded, and legally enforceable?
• What complaints, litigation, enforcement, or bankruptcy proceedings exist?

Historical Relationship With FMS Franchise

WaterStation Technology engaged with FMS during an earlier phase of its business history and was added to the FMS client portfolio. The company’s later operations, investment offering, regulatory issues, and cessation of business are not presented as an FMS success story or an active franchise-development engagement.

FMS’s current franchise development process emphasizes feasibility, transparent system design, accurate disclosure, documented operations, responsible candidate qualification, and coordination with qualified franchise counsel.

For general guidance on evaluating a legitimate franchise opportunity, review the steps to start a franchise, FMS’s franchise agreement guide, and the Federal Trade Commission’s consumer guidance before investing.

Frequently Asked Questions

Is WaterStation Technology currently offering franchises?

FMS has found no basis to present WaterStation Technology as a current opportunity. Washington regulatory records state that the relevant Water Station entities ceased business operations.

Why do other websites still show WaterStation investment information?

Third-party directories often retain old promotional profiles after an offering changes or ends. Publication dates, disclaimers, regulatory records, and primary documentation should be checked before relying on any listing.

Were all allegations finally adjudicated?

This page does not characterize every allegation as a final judicial finding. The Washington DFI issued a Statement of Charges, and at least one consent order states that the settling respondent neither admitted nor denied the findings. Review official records and later orders for current status.

Should existing investors seek advice?

Anyone affected by the former offering should consult qualified legal and financial professionals and review official regulator and bankruptcy records. FMS cannot provide individualized legal, securities, tax, bankruptcy, or recovery advice.

Official Source and Disclaimer

The primary public source for this update is the Washington State Department of Financial Institutions’ enforcement record linked above. Readers should consult the complete order files and any later related orders.

This historical page is provided for transparency and general education. It is not an offer, recommendation, endorsement, investment solicitation, legal conclusion, or statement that every allegation has been finally adjudicated. FMS Franchise is not offering WaterStation Technology franchises or investments. Verify current information with official agencies and qualified advisers.