Wings Over Franchise Costs: Estimated Initial Investment (Item 7, 2023 FDD)
1. Initial Franchise Fee: $30,000
- You must pay to the franchisor an initial franchise fee of $30,000 for a single Wings Over Restaurant to be operated under an individual Franchise Agreement. The initial franchise fee is fully earned and non-refundable when paid.
2. Real Estate Lease Deposits: $1,500 to $8,000
- Unless otherwise approved, the Premises for the Franchised Business must be a minimum of 1,500 square feet and will likely be located in a shopping center or on its own as a freestanding unit.
- If you do not already own a site for your Franchised Business, you must lease or acquire a site for the term of the Franchise Agreement.
- Wings Over expects that you will lease the Premises, and it has provided an estimated cost to sign the lease, which includes 1 month’s rent plus 1 month’s rent as security deposit. Wings Over has not provided an estimate of costs incurred for purchasing the Premises.
3. Leasehold Improvements: $25,000 to $330,000
- This estimate reflects your anticipated costs to complete the buildout of the Premises. The estimate also includes the $25,000 design services fee Wings Over will collect from you as a pass-through payment to its approved architectural firm.
- The Premises must have a dedicated dining zone consisting of at least 30% of the square footage, and must include fiberglass reinforced panels in the kitchen area.
- Your leasehold improvement costs may be on the lower end of the estimate if, for example, your landlord provides you with a significant tenant improvement allowance.
4. Furniture, Equipment, Signs, and Fixtures: $80,000 to $190,000
- The estimated amounts stated in this section are based on new equipment only, including a sauce station, fryers, signs, menus, high-speed Internet, 1 facsimile line, 4 grouped phone lines with caller identification, and T8, 2×4 light fixtures.
- Used equipment may be purchased in lieu of new equipment. A savings of up to 25% or more could be realized.
- The estimated amounts do not reflect shipping.
- Financing and/or leasing may be available for used or new equipment from suppliers.
- The Premises will also require painting, wall color striping, a minimum 12-foot hood, and digital TV menu boards.
- Certain mandatory items are listed in the Manual regarding the decor of the Premises.
5. Point-of-Sale System and Software: $15,000 to $25,875
- You must record all sales using the point-of-sale system Wings Over designates, and on any other equipment or record-keeping system Wings Over specifies in the Manual or otherwise in writing. You must purchase such equipment from Wings Over’s approved suppliers.
6. Inventory (Paper, Food, Supplies): $4,000 to $20,000
- At the time the Franchised Business opens, you must stock the initial inventory of chicken, food items, recorded music, and other products and supplies required by Wings Over in the Manual or otherwise in writing.
- Subsequently, you must stock and maintain all types of approved products in quantities sufficient to meet reasonably anticipated customer demand.
7. Branded Merchandise and Uniforms: $12,500
- Before opening of the Franchised Business, you must purchase certain clothing and wear gear, phone equipment, marketing materials, restaurant equipment and supplies, training materials, banners, and menus from Wings Over’s designated supplier at the then-current prices charged by such supplier. The cost of these items will be approximately $12,500 per Restaurant.
8. Travel and Living Expenses for Training: $2,000 to $5,000
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- For all training courses, seminars, and programs required under the Franchise Agreement, Wings Over will provide, at no charge to you, instructors and training materials; and you or your employees will be responsible for any and all other expenses incurred by them in connection with any of these courses, seminars, and programs, including the costs of transportation, lodging, meals, and wages.
9. Grand Opening Local Advertising and Promotional Program: $5,000
- Beginning 2 weeks before the opening of the Franchised Business and continuing until the opening of the Franchised Business, you must conduct an initial, grand opening local advertising and promotional program in the form and manner required by Wings Over in writing.
10. Advertising: $1,000 to $3,000
- You may, at your expense, obtain listings in the white and yellow pages of local telephone directories with Wings Over’s prior approval for advertising of the Franchised Business. This type of advertising is not required unless you choose to obtain it.
11. Insurance: $5,000 to $20,000
- Wings Over anticipates that you will be required to pay your insurance carrier or agent a full annual premium in advance. The estimate provided in the chart is for a full annual premium.
12. Permits, Health, Occupancy: $1,000 to $2,000
- Before the opening of your Franchised Business, you must obtain all necessary permits and licenses. The above estimate includes licenses to do business, fictitious name registrations, sales tax permits, health permits, building permits, and fire clearances.
13. Utilities: $3,000
- This estimate includes the costs of deposits for gas and electric service that you will need to operate your Franchised Business.
14. Legal and Accounting: $1,000 to $2,500
- This estimate includes the costs of legal fees that you will need to establish your Franchised Business.
15. Additional Funds – 3 Months: $12,000 to $45,000
- This is an estimate of the additional funds, including payroll costs, necessary during the first 3 months that your Restaurant is open and operating.
- The estimate is based on the personal experience of Wings Over’s principal officers with opening and operating businesses similar to those offered under the disclosure document, in New York.
16. Total: $198,000 to $701,875