Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Average Gross Revenue, Cost of Goods Sold, and Labor Cost for Wing Zone Restaurants

by Franchise Chatter on July 3, 2012

in Chicken Wings Franchise, Franchise Earnings



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Highlights of Wing Zone’s Item 19 Financial Performance Representations (2011 FDD)

  • Wing Zone is a takeout and delivery restaurant chain serving chicken wings, chicken fingers, sandwiches, appetizers, related food products, beverage products, and ancillary merchandise.
  • The total investment necessary to begin operation of a single Wing Zone restaurant ranges from $249,000 to $548,500.
  • Since Wing Zone had no Drive-Thru Restaurants or Full-Service Restaurants that were open a full 12 months during the reporting period, each of the restaurants included in this Item 19 is a Traditional Restaurant. A Traditional Restaurant is a Wing Zone restaurant that focuses on takeout and delivery or smaller venues such as food courts.

2010 Average Annual Gross Revenue for the 45 Franchisee Businesses and 2 WZ Businesses Operating Under the Same Ownership at Least 15 Months as of March 10, 2011

  • Wing Zone photo by cerebralcerealThe section below sets forth certain historical revenue information for 2 company-operated Wing Zone restaurants (“WZ Businesses”) used for training and R&D, and 45 franchisee-owned Wing Zone restaurants (“Franchisee Businesses”) for the period from December 7, 2009 through December 5, 2010 (the “Accounting Period”).
  • The businesses included in this discussion have been operating under the same ownership for at least 15 consecutive months as of March 10, 2011.
  • The included businesses are substantially similar in appearance, product, and services offered to those businesses that franchisees operate, and do not receive any services from the franchisor or provide goods and services to the public which are not generally available to or from independent franchisees.
  • Gross revenue is the total revenue from the sale of products, net of any refunds to customers, determined on a cash basis.


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{ 1 comment… read it below or add one }

1851 Magazine July 4, 2012 at 8:52 am

If your looking for some more information on a Wing Zone Franchise, check out the 1851 Due Diligence page. http://www.1851project.com/directory/wing-zone/

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