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Considering a Wings Over Franchise? Don’t Overlook These 17 Important Franchise Fees

by Franchise Chatter on April 18, 2017

in Chicken Franchises, Chicken Wings Franchise, Franchise Fees



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Don't Invest in a Franchise Until You Check Out This List

Wings Over Chicken Photo by mhaithaca

If you are considering a Wings Over franchise, don’t get blindsided by these 17 important franchise fees (from the initial franchise fee, to the royalty fee, to 15 other fees found in Items 5 and 6 of Wings Over’s 2017 FDD).

1.  Initial Franchise Fee:  $30,000

  • You must pay to Wings Over an initial franchise fee of $30,000 for a single Wings Over restaurant to be operated under an individual Franchise Agreement. You must pay the entire initial franchise fee no later than the date of your signing the Franchise Agreement. The initial franchise fee is nonrefundable except as set forth here.
  • For the first Wings Over restaurant you own, the first 5 days of the initial training program will take place at one of Wings Over’s company-owned restaurants and is referred to as the “Testing Period.”
  • Within 24 hours of the conclusion of the Testing Period, both Wings Over and you will have the right to terminate the Franchise Agreement by notifying the other party in writing. Upon such termination, Wings Over will refund your initial franchise fee, less $5,000 for its costs and expenses.
  • In addition, following the Testing Period, if Wings Over determines, in its sole discretion, that you (or one of your principals) have not completed the initial training program to its satisfaction or, during the course of the initial training program, has not exhibited the skills, business acumen, or ability to operate the Franchised Business in compliance with its high standards, Wings Over (and only Wings Over) has the right to terminate the Franchise Agreement at any time before the Franchised Business opens. In the event of such termination, Wings Over will refund your initial franchise fee, less $5,000 for its costs and expenses.

2.  Development Fee:  a minimum of $105,000 for the first 5 Restaurants to be developed and $15,000 for each additional Restaurant to be developed

  • 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 your first 2 Restaurants and $15,000 on signing of a Franchise Agreement for each subsequent Restaurant opened following the initial two.
  • You must open a minimum of 5 Restaurants.
  • If you enter into a Development Agreement, in addition to the initial franchise fee for each Franchise Agreement you sign, as described above, you must also pay a non-refundable development fee of a minimum of $105,000 for the first 5 Restaurants to be developed and $15,000 for each additional Restaurant to be developed, to be paid on signing of the Development Agreement.
  • The development fee is paid for a development area granted, not for the right to open any individual Restaurant; therefore, the development fee is not credited to any initial franchisee fee payable under a Franchise Agreement, but is an additional fee.
  • You must develop a minimum of 5 locations under a Development Agreement.

3.  Products:  $11,900



  • Due Date:  As incurred.
  • If you run out of the initial inventory of branded clothing and wear gear, phone equipment, marketing materials, restaurant equipment and supplies, and training materials, you must purchase additional items from approved vendors. These purchases are in addition to ones being purchased before opening of the Franchised Business.
  • The amount and cost will vary depending on how many items you purchase.

4.  Banners and Menu:  $600

  • Due Date:  As incurred.
  • If you use all of the banners and menus purchased from Wings Over’s approved vendors before opening of the Franchised Business, you must purchase from Wings Over additional banners and menus used in the Franchised Business.
  • The amount and cost will vary depending on how many items you purchase.

5.  Royalty:  4% of total gross sales

  • Due Date:  Payable each month by the 15th day of the following month; however, Wings Over reserves the right to require you to pay this royalty fee on a weekly basis on the day of the week as it designates.
  • All required royalty fees must be paid by the 15th day of each month for Gross Sales in the preceding month, and must be submitted to Wings Over together with any reports or statements required by the Franchise Agreement.
  • Wings Over reserves the right to require payment of royalty fees by direct deposit or electronic funds transfer.
  • “Gross Sales” means all revenue from the sale of all products and services and all other income of every kind and nature at or from the Restaurant or otherwise related to the Restaurant, including, without limitation, any proceeds from business interruption insurance, whether for cash or credit, and regardless of collection in the case of credit.
  • Gross Sales will not include any sales taxes or other taxes collected from customers by you and paid directly to the appropriate taxing authority.

6.  Local Advertising:  at least 1% of Gross Sales

  • Due Date:  Monthly.

7.  Advertising Cooperative:  up to $5,000 annually

  • Due Date:  Bi-annually; within 10 days of your receipt of the invoice.
  • During the term of the Franchise Agreement, if Wings Over establishes a regional advertising and promotional cooperative (“Cooperative”), you must contribute to the Cooperative applicable to your Wings Over restaurant in amounts as are determined by the Cooperative.
  • However, you will not be required to contribute to any Cooperative in excess of $5,000 during any calendar year.

8.  Interest:  for all payments due to Wings Over, interest on the amount at the rate of 2% per month subsequently, until paid

  • Due Date:  As incurred.
  • If any royalty or other payment is overdue by 30 days or more, you must pay Wings Over or its designee immediately upon demand, in addition to the overdue amount, interest on the amount at the rate of 2% per month subsequently until paid, or the maximum rate permitted by law, whichever is less.
  • Wings Over’s entitlement to interest will be in addition to any other remedies it may have.
  • You will not be entitled to set-off any payments required to be made under the Franchise Agreement against any monetary claim you may have against Wings Over.

9.  Renewal of Franchise Agreement:  $7,500

  • Due Date:  5 years from opening date.

10.  Insurance:  cost of insurance and, if not obtained by you, Wings Over’s procurement expense

  • Due Date:  As required and as incurred.
  • Before you open your Franchised Business, you must purchase and maintain at your sole expense at all times during the term of the Franchise Agreement the insurance coverage required by the Franchise Agreement, including comprehensive general liability insurance, property and casualty insurance, business interruption insurance, statutory workers’ compensation insurance, employer’s liability insurance, product liability insurance, and automobile insurance coverage for all vehicles used in connection with the operation of your Franchised Business.
  • If you fail to obtain or maintain the insurance required, Wings Over will have the right and authority (but not the obligation) to obtain the required insurance and to charge you for it, which charges, together with a reasonable fee for its expenses in so acting, will be payable by you immediately upon notice.

11.  Audit:  cost of audit

  • Due Date:  As incurred.
  • Wings Over and its designated agents will have the right at all reasonable times to examine and copy, at its expense, your books, records, accounts, and tax returns.  Wings Over will also have the right, at any time, to have an independent audit made of your books.
  • If an inspection should reveal that any payments have been understated in any report to Wings Over, then you must immediately pay to it the amount understated upon demand, in addition to interest from the date the amount was due until paid, at the rate of 18% per annum, or the maximum rate permitted by law, whichever is less.
  • If an inspection discloses an understatement in any report, you must, in addition to repayment of monies owed with interest, reimburse Wings Over for any and all costs and expenses in connection with the inspection (including travel, lodging and wages expenses, and reasonable accounting and legal costs).
  • These remedies will be in addition to any other remedies Wings Over may have.

12.  Training:  amount of expenses, $500 to $6,000

  • Due Date:  As incurred.
  • All training programs Wings Over conducts will be at the times and places as it may designate.
  • For all required training courses, seminars, and programs, for up to 3 persons only, Wings Over will provide instructors and training materials; and you or your employees will be responsible for any and all other expenses incurred by you or your employees in connection with any courses, seminars, and programs, including the costs of transportation, lodging, meals, and wages.
  • For any more than 3 persons, you will be solely responsible for all costs and expenses associated with required training for those persons.

13.  Site Selection:  amount of expenses



  • Due Date:  As incurred.
  • Under the Franchise Agreement, Wings Over will conduct, if it deems necessary and appropriate, up to 2 on-site evaluations of any properly submitted proposed sites.
  • These evaluations will be at Wings Over’s cost, if the proposed site is within 100 miles of its principal place(s) of business in Westfield, Massachusetts, or Columbus, Ohio, and at your cost, if the proposed site is more than 100 miles of Wings Over’s principal place of business or if Wings Over has already conducted 2 on-site evaluations.
  • For each additional on-site evaluation (if any), you must reimburse Wings Over for its expenses, including the costs of travel, lodging, and meals.

14.  Transfer:  $5,000 or $12,000

  • Due Date:  Before consummation of transfer.
  • If there is a transfer under the Franchise Agreement or the Development Agreement, you must pay to Wings Over a transfer fee of $12,000. However, in the case of a transfer to a corporation formed by you for the convenience of ownership, no transfer fee will be required, and in case of a transfer to a transferee due to your death, the transfer fee will be $5,000.

15.  Indemnification:  cost of liability

  • Due Date:  As incurred.
  • You must indemnify and hold Wings Over and its officers, directors, and employees harmless against any and all claims, losses, costs, expenses, liabilities, and damages arising directly or indirectly from, as a result of, or in connection with your operation of the Franchised Business under the Franchise Agreement and your operations under the Development Agreement (if any), as well as the costs, including attorneys’ fees, of the indemnified party in defending against them.

16.  Collection Costs and Attorneys’ Fees:  cost of collection and attorneys’ fees

  • Due Date:  As incurred.
  • You must pay to Wings Over all damages, costs, and expenses, including all court costs, mediation costs, and reasonable attorneys’ fees, and all other expenses it incurs in enforcing any obligation or in defending against any claim, demand, action, or proceeding relating to the Franchise Agreement, including the obtaining of injunctive relief.

17.  Computer Support Fees:  approximately $150 per month

  • Due Date:  Monthly.
  • You must pay any applicable computer hardware support fees charged by Wings Over or the approved supplier of the computer or point-of-sale system purchased by you for use in the Franchised Business, as described in Items 8 and 11. The estimated cost of these services will be $150 per month.


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