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Franchise Costs: Detailed Estimates of Wow Cafe American Grill & Wingery Franchise Costs (2016 FDD)

by Franchise Chatter on August 7, 2016

in Chicken Wings Franchise, Franchise Costs



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Wow Cafe Photo from newhaven.edu

Detailed Estimates of Wow Cafe American Grill & Wingery Franchise Costs Based on Item 7 (Estimated Initial Investment) of Wow Cafe’s 2016 Franchise Disclosure Document

1.  Initial Franchise Fee:  $15,000 to $35,000

2.  Real Estate Lease for Premises:  $6,000 to $40,000

  • Locations for WOW Cafe Businesses are typically within shopping centers and suburban shopping areas. Typically, you would lease an existing location in a strip center or other commercial shopping center and remodel the location to conform to the current design specifications of WOW Cafe Businesses.
  • For a typical WOW Cafe Business, you must lease approximately 950 to 3,200 square feet of space. Lease payments for a typical WOW Cafe Business usually range from $1,500 to $10,000 per month ($18,000 to $120,000 per year) depending upon the size, location, and market demand for the property. The rate may be higher for regional mall sites or locations in high demand.
  • WOW Cafe estimates that the range given will cover a deposit and first three month’s rent.

3.  Fixtures and Equipment:  $75,000 to $205,000

  • WOW Cafe will provide a complete list of equipment needs and specifications.
  • WOW Cafe estimates that the range given will also be enough to purchase the initial decor package and other miscellaneous equipment.
  • The decor package and equipment must comply exactly with the designer and/or architectural plans specified by WOW Cafe.

4.  Opening Advertising:  $5,000

5.  Travel and Living Expenses While Training:  $3,500 to $8,500

  • The costs listed include estimates for reasonably priced transportation, lodging, and meals for three people. The costs do not include wages paid for associates or employees attending training, local restaurants, or other attractions in New Orleans, which can significantly increase your costs and affect the quality of your training.

6.  Insurance:  $2,400 to $3,000

  • The estimate given in the chart is for the initial payment for the first year’s premium for a customary comprehensive general liability policy in the amount of $1 million (minimum) per occurrence, business interruption insurance, and $1 million (minimum) aggregate with full replacement value of business contents coverage.

7.  Furniture:  $6,000 to $22,000

8.  Other Prepaid Expenses (such as deposits, licenses, and various permits):  $1,000 to $3,500

  • These costs include installation charges and deposits for a business telephone line, utilities, occupational licensing, health and other permits, and, in some areas, zoning fees.

9.  Opening Inventory:  $10,000 to $20,000

  • WOW Cafe estimates that the range given will be sufficient to cover a supply of food, beverages, menus, uniforms, and other supplies for the opening of your WOW Cafe Business.

10.  Signage:  $6,000 to $18,000

11.  Leasehold Improvements:  $65,000 to $338,000

  • Costs could exceed the estimates provided if remodeling is extensive and the lessor does not contribute significantly to the costs of remodeling your Business.

12.  Small Wares:  $6,000 to $12,000

13.  Legal, Accounting, and Organizational Costs:  $4,500 to $7,000

14.  Additional Funds – 3 Months:  $27,500

  • This amount reflects the minimum suggested amount of additional funds you will need for the first three months to operate your WOW Cafe Business.
  • This amount includes the following items:  salaries and wages, payroll taxes, advertising, product purchases, payment of royalties, uniforms, utility bills, ongoing professional fees, freight, and miscellaneous administrative and operating expenses.

15.  Construction Drawings:  $1,500 to $12,500

  • You must obtain construction drawings and make certain improvements and modifications to the particular building you lease to conform to the decor and design of other WOW Cafe Businesses.
  • WOW Cafe may offer the service of preparing pre-construction drawings to aid the preparation of the complete construction drawing set. The pre-construction drawings may include existing and proposed floor plan, reflected ceiling plan, equipment and furniture plan, finishes and details, typical elevation plans, and low voltage wiring plan.
  • The fee for the pre-construction drawings prepared by WOW Cafe ranges from $500 to $2,500.

16.  Total:  $234,400 to $757,000

  • WOW Cafe relied on its prior experience in this business to compile these estimates.



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