FDD Talk 2017: What You Need to Know About the Wings Over Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

In this FDD Talk 2017 post, you’ll learn the following:

• Section I – Background information on the Wings Over franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Wings Over franchise, based on Item 7 of the company’s 2017 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Wings Over franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Wings Over’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:

• fiscal year 2016 average gross sales for the 9 company-owned and 26 franchised Wings Over locations that were operating as of the date of the 2017 FDD and were open for the entire fiscal year 2016 (October 1, 2015 to September 30, 2016)

• fiscal year 2016 total gross sales for the 9 company-owned and 26 franchised Wings Over locations that were operating as of the date of the 2017 FDD and were open for the entire fiscal year 2016 (October 1, 2015 to September 30, 2016)

• fiscal year 2016 actual gross sales for each of the 9 company-owned and 26 franchised Wings Over locations that were operating as of the date of the 2017 FDD and were open for the entire fiscal 2016 (October 1, 2015 to September 30, 2016)

Section I – Background Information

9 Things You Need to Know About the Wings Over Franchise

Reopening in College Town

1.  In late March, a new Wings Over location opened in Ithaca, New York. Residents of the college town were upset when the previous Wings Over Ithaca location closed in October 2016, after the owner was charged with tax evasion. The location had been open for over 10 years.

2.  Four Cornell alums, Dan Leyva, Kevin Mok, Raunak Nirmal and Mike Wang, decided to open the new location because they knew how important the restaurant was to the community. According to Leyva, Wings Over Ithaca had been a hot spot for him and his business partners while they were in college.

3.  Leyva says that their franchise agreement with Wings Over is completely new and that they have nothing to do with the previous owner. The Cornell alums have decided to hire a few of the original location’s employees, including former General Manager Mitchell Blinn.

4.  After the original location closed, a petition went up online calling for Blinn to reopen Wings Over Ithaca. Leyva promised that the new location will have the same menu that it previously had and that delivery will continue throughout the Ithaca area.

Standing Out From the Competition by Cooking Fresh Wings

5.  Wings Over strives to provide takeout and delivery food that is as good as what you would find at a sit down restaurant. The company makes wings that are hand battered and made fresh to order. The wings come in a wide variety of flavors including Buffalo in various heat levels, Honey BBQ, Cajun BBQ, Spicy Teriyaki, Jamaican Jerk, Hot Garlic, Sweet Chili, and many more.

6.  All of the food at Wings Over is aviation-themed to fit with the name of the chain. For example, a six pound order of boneless wings is called a Zeppelin and the largest combination platter is called The Aircraft Carrier.

Company History

7.  Wings Over was founded in 1999 by Patrick Daly and Harold Tramazzo in Massachusetts. Daly and Tramazzo wanted to make the food they loved (wings, ribs, etc.) better than what they could find at other restaurants. After the pair realized that the cost of opening a restaurant would be too high, they decided to deliver their fresh, hand cooked boneless wings directly to their customers.

8.  Although Wings Over has been open for nearly two decades, growth has remained slow. According to the company, its goal is to be the best and not necessarily the biggest wing delivery chain in the U.S. Today, there are about 36 Wings Over locations in 13 states.

Entrepreneur’s Franchise 500

9.  Wings Over has only ranked three times on Entrepreneur’s annual Franchise 500 list in the last decade. The company’s highest rank was No. 490 in 2009 and its lowest rank was No. 494 in 2008. The first time Wings Over earned a spot on Entrepreneur’s list was in 2007 at No. 492.

Section II – Estimated Costs

• Please click here for detailed estimates of Wings Over franchise costs, based on Item 7 of the company’s 2017 FDD (updated).

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Wings Over’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis