This post was updated on April 18, 2017 to reflect information from Wings Over’s 2017 FDD (Item 7).
Detailed Estimates of Wings Over Franchise Costs Based on Item 7 (Estimated Initial Investment) of Wings Over’s 2017 Franchise Disclosure Document
1. Initial Franchise Fee: $30,000
- If you enter into a Development Agreement, you must pay an initial franchise fee of $30,000 on signing of a Franchise Agreement for each of the first 2 Restaurants. In addition, you must pay $15,000 on signing of a Franchise Agreement for each Restaurant other than the first 2 Restaurants to be developed by you.
2. Development Fee: $0 to $105,000
- You are not required to sign a Development Agreement. If you enter into a Development Agreement, in addition to the initial franchise fee for each Franchise Agreement you sign, you must also pay a non-refundable development fee of a minimum of $105,000 depending on the size of your development area, to be paid on signing of the Development Agreement.
- The development fee may be more than $105,000 for a larger development area.
- If you do not enter into a Development Agreement, you will not pay a development fee.
3. Real Estate: $1,500 to $8,000
4. Leasehold Improvements: $25,000 to $180,000
- The premises for the Franchised Business (“Premises”) must be a minimum of 1,400 square feet, and at least 200 square feet of diamond plate aluminum and fiberglass reinforced panels in the kitchen area is required.
- If you do not already own a site for your Franchised Business, you must lease or acquire a site for your Franchised Business for the term of the Franchise Agreement. You will probably choose for your Franchised Business to be located in a shopping center or on its own as a freestanding unit.
- In the event that you lease the premises, Wings Over has provided an estimated cost, which estimate includes one month’s rent plus one month’s rent as security deposit. Wings Over has not provided an estimate of costs incurred for purchasing the Premises.
5. Furniture, Equipment, Signs, and Fixtures: $80,000 to $97,000
- The amounts stated in this section of your estimated initial investment, are based on new equipment only, including a sauce station and fryers, signs, menus, 1 cable modem line or DSL, 1 facsimile line, 4 grouped phone line with caller identification, and T-8 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 equipment 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, a minimum of 8 airplane pictures, menu boards, and a minimum of 3 store write ups.
- Certain mandatory items are listed in the Manual regarding the decor of the Premises.
6. Point of Sale/Information System: $24,875 to $25,875
- You must record all sales on a cash register or computer-based point-of-sale record keeping and control system designated by Wings Over, or any other equipment specified by Wings Over in the Manual or otherwise in writing. You must purchase this cash register or computer-based point-of-sale record keeping and control system from Wings Over’s approved supplier.
7. Inventory (Paper, Food, Supplies): $4,000 to $10,000
- At the time the Franchised Business opens, you must stock the initial inventory of chicken, food items, recorded music, aviation merchandise, 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.
8. 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.
- If you enter into a Development Agreement, you must spend approximately $12,500 per Restaurant granted under that agreement.
9. Travel and Living Expenses for Training: $2,000 to $5,000
- 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.
10. Grand Opening Local Advertising and Promotional Program: $3,500
- 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.
11. 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.
12. Insurance: $5,000 to $20,000
- Wings Over estimates 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.
13. 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.
14. Utilities: $3,000
- This estimate includes the costs of deposits for gas and electric service that you will need to operate your Franchised Business.
15. Legal and Accounting: $1,000 to $2,500
- This estimate includes the costs of legal fees that you will need to operate your Franchised Business.
16. Additional Funds – 3 Months: $12,000 to $45,000
- This estimates your initial start-up expenses. These expenses include payroll costs. These figures are estimates and Wings Over cannot guarantee that you will not have additional expenses starting the business.
- The estimate provided is based on the prior experience of Wings Over’s principal officers who operate similar businesses to those offered under this disclosure document in Massachusetts, Michigan, New York, and Ohio.
17. Total: $206,375 to $552,375