Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Wing Zone Franchise Costs (2015 FDD)

by Franchise Chatter on August 29, 2015

in Chicken Franchises, Chicken Wings Franchise, Franchise Costs

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Wing Zone photo by cerebralcereal

Detailed Estimates of Wing Zone Franchise Costs Based on Item 7 (Estimated Initial Investment) of Wing Zone’s 2015 Franchise Disclosure Document

  • Except for your real estate costs and security deposits, all amounts identified in this Item 7 chart are non-refundable. A portion of your real estate costs and utility deposits may be refundable in accordance with the agreements made with the landlord and utility companies.
  • The expenses in this Item 7 are estimates of your initial investment prior to commencing operations for a Wing Zone Business and for the first three months thereafter, and are based on Wing Zone’s and its affiliate’s and predecessor’s 22 years of experience.
  • More specifically, estimated expenses represent your initial investment for a Wing Zone Business with approximately 1,200 square feet in a leased space, provided the landlord has supplied a vanilla box, which provides dine-in, delivery, and take-out services.
  • Wing Zone cannot guarantee that you will not have additional expenses starting the Business. Your costs will depend on how closely you follow the Wing Zone system standards; your management skill, experience, and business acumen; local economic conditions; the acceptance by local consumers of the franchisor’s approved services; prevailing wage rates; competition, etc.
  • Wing Zone has made no estimate regarding real estate acquisition costs. The franchisor does not require you to acquire real estate.
  • Leasehold improvements are estimated for improvements to a space with requisite square footage received from the landlord as a vanilla shell, which you must remodel and equip to conform to the franchisor’s standards and specifications.
  • Wing Zone makes no representations as to whether any of the estimated investment amounts are refundable.

1.  Initial Franchise Fee:  $27,500

2.  Leasehold Improvements:  $70,000 to $140,000

3.  Equipment and Furniture:  $76,000 to $100,000

4.  Signs:  $6,000 to $8,000

5.  Initial Inventory:  $8,000

6.  Computer POS System:  $18,650

7.  Office Equipment and Phone System:  $3,500 to $4,000

8.  Digital Security System:  $1,000 to $2,000

9.  Start-Up Marketing:  $2,500

10.  Insurance (Down Payment):  $1,500 to $2,000

11.  Real Estate Costs:  $5,000 to $9,000

12.  Architectural Plans:  $5,000 to $11,000

13.  Utility Deposits:  $1,500 to $5,000

14.  Uniforms:  $1,000

15.  Drop Safe:  $1,000 to $2,500

16.  Branding Package:  $3,000 to $5,000

17.  Audio Visual:  $1,000 to $2,000

18.  Miscellaneous Incidentals:  $2,500

19.  Your Out-of-Pocket Initial Training Expenses:  $2,500 to $4,000

20.  Pre-Opening Training/Mock Rush:  $8,000

21.  Additional Funds (over next 3 months):  $25,000

22.  Total Estimated Initial Investment:  $262,650 to $387,650

Estimated Initial Investment Under an Area Development Agreement

  • If you are an Area Developer, you will pay a Development Fee equal to $10,000 times the number of Wing Zone Businesses you will open.
  • You will also pay Wing Zone the initial franchise fees in the amounts described in Item 5, however, Wing Zone will apply (a) a credit of $10,000 from the Development Fee toward the initial franchise fee due under the Franchise Agreement executed between you and Wing Zone for each individual Business in the Territory, plus an additional (b) $5,000 initial franchise fee credit for Stores 2-4, and (c) $10,000 initial franchise fee credit for Stores 5 and beyond.
  • The balance of your initial investment requirements for your first Wing Zone Business is described in the above table. You will incur additional initial franchise fees and additional costs and expenses during the term of the Area Development Agreement as you open the remaining number of Wing Zone Businesses required under the Area Development Agreement.
  • Those additional costs of development may increase over the term of the Area Development Agreement based on inflation and other economic factors.

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