In this FDD Talk 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 2019 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 2019 FDD
- Section IV – Number of franchised and company-owned Wings Over outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of Wings Over’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2017 and 2018 average, median, high, and low gross sales for the franchised Wings Over businesses that were open for the entire 2017 fiscal year (October 1, 2016 to September 30, 2017) and the entire 2018 fiscal year (October 1, 2017 to September 30, 2018), separately stated
- 2017 and 2018 average, median, high, and low gross sales for the company-owned Wings Over businesses that were open for the entire 2017 fiscal year (October 1, 2016 to September 30, 2017) and the entire 2018 fiscal year (October 1, 2017 to September 30, 2018), separately stated
Section I – Background Information
13 Things You Need to Know About the Wings Over Franchise
1. Wings Over opened a couple new locations in the second half of 2018. One new location opened in December in South Bend, Indiana while another Wings Over opened in Athens, Georgia in mid-August.
2. The South Bend location is the first Wings Over in Indiana and is the brand’s 45th store. Wings Over currently has restaurants throughout the East Coast and Midwest, primarily in college towns and CEO Dan Leyva said the South Bend market was a “natural extension” to the company’s business plan.
3. To celebrate its grand opening, Wings Over South Bend served a half pound of free boneless wings from 11 a.m. Tuesday to 1 a.m. Wednesday. To receive the deal, customers had to download the Wings Over app on their phones and activate the offer.
4. Wings Over South Bend is also one of the first locations featuring the brand’s redesigned layout. The store is stark white, which gives it a somewhat sterile feeling – a feeling that was planned. According to Leyva, “Wings are inherently dirty, so we want to make everything else clean. Just how In-N-Out employees wear all white, we want to have white countertops to give that same attention to cleanliness.”
5. Leyva added that one thing that Wings Over doesn’t have is beer. He said, “This is not a sports bar. We want this to be a family-friendly place and if you want beer, you can always order and get it delivered to your home where you can have your own beer.”
6. Leyva also emphasized that while Wings Over is based out of New York, its locations have a community feel and participate in community events such as Relay for Life. Leyva said it wouldn’t be uncommon to see Wings Over items being passed around at Notre Dame Stadium tailgating events, with the NHL’s Winter Classic event on Jan. 1 being the first since the South Bend location’s opening.
7. Just like the South Bend location, the Wings Over in Athens, Georgia is the first to open in its state. Jorge Bouras, the operations manager for Wings Over Athens, highlighted the chain’s wide array of sauces. Bouras said, “The most common combination here for sure is the lemon pepper or hot lemon pepper, which is lemon pepper [with] BBQ sauce on it. I like to combine a couple of things. I like to get the citrus chipotle and throw some cajun BBQ on it, and for me, that is by far what I love on boneless chicken. On the bone-in chicken, I am a buffalo guy all the way.”
New Mobile App
8. During the summer of 2018, as part of Wings Over’s brand refresh, the company teamed up with Olo and LevelUp to launch a new mobile app to improve mobile ordering as well as the brand’s Flyer Club Rewards Program. With the app, customers can easily place their orders and skip the stores’ lines. Wings Over points can be collected through the app to use toward free food or swag.
9. As of the time of this writing, the Wings Over mobile app is only available on the Apple App Store, but according to the brand’s website the app will be available on the Google Play store soon.
10. Every one dollar spent earns one point on the Flyer Club Rewards Program and reward members earn $5 for every 99 points, which is available on all three reward tiers. The three Flyer Club Rewards tiers are as follows:
Takeoff – members achieve this tier after they earn 200 points. Perks include:
- Birthday reward – DC 3 boneless wings or sandwich
- 1 free drink
- 1 free small waffle fries
- Laptop sticker
Cruisin’ Altitude – level achieved after earning 500 points. Perks include:
- Access to invite-only events
- 3 free combo upgrades
- Wings Over shirt
Red Alert – final level reached after earning 1,000 points. Perks include:
- Wings Over dinner for member and 3 friends
- Wings Over play kit
- Wings Over hat
- Custom Wings Over gear
11. Wings Over was founded in 1998 by Patrick Daly and Harold Tramazzo at the University of Massachusetts in Amherst. Daly and Tramazzo started the business because they wanted to deliver high quality yet simple food to college students at a fair price. Their idea quickly caught on and by the early 2000s, Daly and Tramazzo began franchising the Wings Over concept. Since it started in 1998, Wings Over has become a cult favorite with college students as most of its restaurants are located in or near college campuses across the United States.
12. In October 2017, after nearly two decades of running the company, Daly and Tramazzo sold Wings Over to Delectable Capital, which is run by a group of college friends (one of whom is Wings Over’s new CEO Dan Leyva) who had loved the Wings Over location near Cornell University. When the Wings Over restaurant near Cornell closed, the friends decided to reopen the restaurant as franchisees. They eventually purchased the franchising company from the founders shortly thereafter. Since the acquisition, Wings Over has launched a major rebrand in order to help the company expand further across the United States.
Entrepreneur’s Franchise 500
13. Wings Over did not rank on Entrepreneur’s 2019 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Wings Over franchise costs, based on Item 7 of the company’s 2019 FDD.
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 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 26
- Outlets at the End of the Year: 25
- Net Change: -1
- Outlets at the Start of the Year: 25
- Outlets at the End of the Year: 35
- Net Change: +10
- Outlets at the Start of the Year: 35
- Outlets at the End of the Year: 34
- Net Change: -1
- Outlets at the Start of the Year: 9
- Outlets at the End of the Year: 12
- Net Change: +3
- Outlets at the Start of the Year: 12
- Outlets at the End of the Year: 1
- Net Change: -11
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 3
- Net Change: +2
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
- This Item 19 presents historical data relating to the average gross sales for franchised and company-owned Wings Over businesses that were open for the entire 2017 fiscal year (October 1, 2016 to September 30, 2017) and the entire 2018 fiscal year (October 1, 2017 to September 30, 2018).
- The franchisor has not audited or verified this information. It relied solely on the information provided through each outlet’s point-of-sale computer systems.
Part 1 – Gross Sales for Franchised Outlets
- Part 1 below presents the total gross sales generated by 24 of 25 franchised outlets in fiscal year 2017, and 32 of 35 franchised outlets in fiscal year 2018.
- The information provided below for fiscal year 2017 does not include one franchised outlet that temporarily closed in the middle of the year.
- Similarly, the information provided below for fiscal year 2018 does not include two franchised outlets that closed permanently in 2018, nor one franchised outlet operated by the founders that does not report its revenues through the franchisor’s point-of-sale system.
- In 2017, 7 (29%) franchised outlets met or exceeded the franchised average of gross sales and 17 (71%) franchised outlets did not meet or exceed the franchised average of gross sales.
- In 2018, 14 (44%) franchised outlets met or exceeded the franchised average of gross sales and 18 (56%) franchised outlets did not meet or exceed the franchised average of gross sales.