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

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

• Section II – Estimated initial investment for a Buffalo Wings & Rings 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 Buffalo Wings & Rings franchise, based on Items 5 and 6 of the company’s 2017 FDD

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

• 2016 average gross sales, cost of goods sold, and labor cost for the Top 10, Top 20, and all 39 franchisee-operated Buffalo Wings & Rings locations that have been open for more than 1 year and less than 8 years

• 2006 to 2016 average weekly sales for the Buffalo Wings & Rings locations (franchisee-operated and company-operated) opened any week during the year

Section I – Background Information

11 Things You Need to Know About the Buffalo Wings & Rings Franchise

Eyeing Pensacola, Florida Area for 2018 Expansion

1.  At the start of December 2017, Buffalo Wings & Rings announced that it was looking to expand its Northwest Florida footprint in 2018. The brand’s plan to target this area of Florida was revealed just 10 months after opening a new location in Fort Walton. It also said that it has plans to open seven to eight new locations in 2018.

2.  According to Philip Schram, Buffalo Wings & Rings’ Chief Development Officer, “When the city population is 50,000 to 100,000, this is where we shine. Pensacola fits exactly that mold. We like to go where the families go.” He added that the brand is looking for additional franchisees to further develop Buffalo Wings & Rings in the area.

3.  The company is seeking franchisees who meet the financial qualifications and have experience in hospitality. Schram emphasized the need for experienced franchisees, saying, “It’s very important that they have restaurant experience. Everybody thinks running a restaurant is easy when they’re just starting out. But there’s nothing easy about it. Running a franchise means maintaining our brand standards and providing excellent service.”

Brought Back Holiday Favorites for Limited Time

4.  In mid November, Buffalo Wings & Rings rolled out its holiday menu featuring the return of its Holiday Spice Wings and two festive cocktails, Berry Merry Bourbon and It’s a Wonderful Spice. The Holiday Spice Wings, which were introduced in 2016, feature a mixture of sweet and spicy, boneless wings tossed with cinnamon, chipotle, cranberry, Bourbon BBQ, and Buffalo Mild sauces. The Berry Merry Bourbon cocktail is a mix of bourbon, strawberry preserves, Craisins, orange juice, and mint leaves. It’s a Wonderful Spice consists of Fireball cinnamon whisky, RumChata, chipotle, chocolate, and a cinnamon crunch rim.

5.  In addition to the seasonal menu items, Buffalo Wings & Rings had a special offer for a free Coke-brand polar bear plush with the purchase of a starter and two Coke beverages. The offer was available throughout the holiday season or while supplies lasted. The brand also offered a $5 bonus for every $25 spent on Buffalo Wings & Rings gift cards.

Raised More Than $17,000 for American Cancer Society During Breast Cancer Awareness Month

6.  From October 2 to November 5, Buffalo Wings & Rings had its annual “Chip in for the Cause” promotion, which aids in cancer awareness and research through a limited-time menu and promotional t-shirt. The menu featured pink tortilla chips, spicy Buffalo Chicken dip, and a signature pink cocktail called the Blushing Buffalo. The brand pledged to donate $1 for every LTO item ordered and the net proceeds from t-shirts purchased during the campaign to the American Cancer Society.

7.  In December, Buffalo Wings & Rings announced that it had raised $17,536 through the campaign. Guests who purchased any of the LTO items received a pledge card that was displayed in their local restaurant, highlighting who or what inspired them to show their support.

8.  Nader Masadeh, CEO of Buffalo Wings & Rings, said, “We are committed to doing our part to improve the communities we serve throughout the country, and specifically we are proud to give back during our annual ‘Chip in for the Cause’ campaign to help aid in the fight against cancer. We were thrilled with how our franchisees and our guests rallied behind this program for the second year in a row. We look forward to continuing to find ways to make a positive impact in the coming year.”

Company History

9.  Buffalo Wings & Rings was founded in 1984 in Cincinnati, Ohio. Over the next two decades, the brand grew very little until it was purchased by a management team led by Philip Schram, Nader Massadeh, and Haytham David in 2005. Each of these men took a senior management role with Buffalo Wings & Rings and began franchising the brand later that same year.

10.  By 2008, the company had opened more locations across the U.S. and updated its menu to include fresh boneless tenders and new sauces such as Lemon Pepper, “Crazy,” and Garlic Parmesan. In 2011, Buffalo Wings & Rings opened its first international location in the Middle East. Today, there are over 75 locations in the U.S. and globally.

Entrepreneur’s Franchise 500

11.  Buffalo Wings & Rings appears on Entrepreneur’s Franchise 500 list for 2018 at No. 293, its highest rank to date.

Section II – Estimated Costs

• Please click here for detailed estimates of Buffalo Wings & Rings franchise costs, based on Item 7 of the company’s 2017 FDD.

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

• Please click here for detailed information on Buffalo Wings & Rings’ 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

Part 1 – Average Gross Sales, Cost of Goods Sold, and Labor Costs for Franchisee-Operated Restaurants

• There were 53 Buffalo Wings & Rings locations in operation at the end of 2016.

• The numbers in Part 1 below contain results from the year 2016 from locations that have been open for more than 1 year and less than 8 years, which is a total of 39 locations.

• Three locations that are not current in reporting their results to Buffalo Wings & Rings have been omitted.

• The locations that are included in this representation (39) include all franchisee-operated restaurants.

• The financial information provided below was obtained from the income statements that were reported to Buffalo Wings & Rings by its franchisees.

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