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

• Section I – Estimated initial investment (franchise costs) for a Wings Over franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Wings Over franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Wings Over outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

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

• Section V – Presentation and analysis of Wings Over’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2019, 2020, and 2021 average, median, high, and low gross sales for the franchised Wings Over businesses that were open for the entire 2019 fiscal year (October 1, 2018 to September 30, 2019), the entire 2020 fiscal year (October 1, 2019 to September 30, 2020), and the entire 2021 fiscal year (October 1, 2020 to September 30, 2021), respectively, with certain exceptions

• 2019, 2020, and 2021 average, median, high, and low gross sales for the company-owned Wings Over businesses that were open for the entire 2019 fiscal year, the entire 2020 fiscal year, and the entire 2021 fiscal year, respectively, with certain exceptions

• Section VI – Key ratios, comparables, computations, and analyses for the Wings Over franchise opportunity (exclusive content for Platinum subscribers)

Section I – Wings Over Franchise Costs

• Wings Over franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee: $30,000
• Real Estate:  $1,500 to $8,000
• Leasehold Improvements:  $25,000 to $305,000
• Furniture, Equipment, Signs, and Fixtures:  $80,000 to $172,152
• Point-of-Sale System and Software:  $24,875 to $25,875
• Inventory (Paper, Food, Supplies):  $4,000 to $20,000
• Branded Merchandise and Uniforms:  $12,500
• Travel and Living Expenses for Training:  $2,000 to $5,000
• Grand Opening Local Advertising and Promotional Program:  $5,000
• Advertising:  $1,000 to $3,000
• Insurance:  $5,000 to $20,000
• Permits, Health, Occupancy:  $1,000 to $2,000
• Utilities:  $3,000
• Legal and Accounting:  $1,000 to $2,500
• Additional Funds for 3 Months:  $12,000 to $45,000
• Estimated Total Franchise Costs:  $207,875 to $659,027

Section II – Wings Over’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Wings Over’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $30,000
• Royalty Fee:  5% of gross sales
• Local Advertising:  2% of gross sales
• Advertising Cooperative:  up to $10,000 annually
• Advertising Fund:  up to 2% of gross sales

Section III – Number of Franchised and Company-Owned Wings Over Outlets

Franchised

2019

• Outlets at the Start of the Year:  34
• Outlets at the End of the Year:  30
• Net Change:  -4

2020

• Outlets at the Start of the Year:  30
• Outlets at the End of the Year:  26
• Net Change:  -4

2021

• Outlets at the Start of the Year:  26
• Outlets at the End of the Year:  30
• Net Change:  +4

Company-Owned

2019

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  8
• Net Change:  +5

2020

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  8
• Net Change:  0

2021

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  7
• Net Change:  -1

Section IV – Background Information on the Wings Over Franchise

15 Things You Need to Know About the Wings Over Franchise

Creates CBD-Infused Menu for 4/20

1.  In mid-April 2021, Wings Over announced that it was infusing its signature Garlic Parm with CBD. The new flavor was served on its famous wings, tenders, and tots. Wings Over served up a special lineup on 4/20 with CBD-Infused Garlic Parm. The limited-edition CBD lineup was only available while supplies lasted on Tuesday, April 20, 2021.

2.  Dan Leyva, Wings Over’s chief wing officer, said, “In 2019, guests loved our CBD Garlic Parm Tots so much that we decided to not only bring them back this year but also expand the lineup to include crispy wings and hand-breaded tenders.”

3.  The CBD lineup consisted of three items: tots, four tenders, or six wings tossed in a CBD-infused version of Wings Over’s signature Garlic Parm dry rub. Guests could order the CBD lineup online via order.wingsover.com or on the Wings Over app at participating locations. Local age restrictions and ID verification applied when receiving these orders.

Launched Free Tenders for a Year Sweepstakes

4.  In late August 2021, Wings Over announced that it created “SepTender” to celebrate National Chicken Month and its signature fresh, hand-breaded chicken tenders, by giving away free tenders for a year to one lucky winner. Everyone could participate in the SepTender Sweepstakes for a chance to win free tenders for a year.

5.  Every online or app order that included at least one tender menu item counted as one entry. Guests were encouraged to enter once per day via ordering at order.wingsover.com or on the Wings Over app. Guests could also enter by following @EatWingsOver on Instagram and engaging with the account’s daily posts.

6.  Dan Leyva, Wings Over’s chief wing officer, said, “We serve the best hand-breaded chicken tenders in the world! Guests have loved our tenders in 25 different flavors for over 20 years, so for National Chicken Month, we wanted to celebrate both our amazing guests and amazing tenders by giving one lucky guest free tenders for a year.”

7.  To kick off the SepTender Sweepstakes, Wings Over offered 10% off an order of tenders in September with code SEPTENDER10 at order.wingsover.com or the Wings Over app. Guests could also use code SEASON11 for $5 off $25.

Releases New Original Chicken Tender Sandwich

8.  In mid-December 2021, Wings Over launched its All-New Original Tender Sandwich, a crispy tender on a top-split butter-toasted bun. Guests can choose one of Wings Over’s 25 signature flavors for the tender with a Ranch or Blue Cheese drizzle on top.

9.  According to Dan Leyva, Wings Over’s chief wing officer, “Everyone is trying to create a good chicken sandwich, which we’ve been doing for years, but we knew we had an opportunity to create something truly unique and special with our Hand-Breaded Tenders. We designed the perfect tender sandwich that can be enjoyed in 25 different flavors, not just Regular or Spicy.”

10.  Guests can order two Original Tender Sandwiches for $5. Tender Sandwiches are perfect to add to an order, eat as a snack, or order two as a satisfying meal option. Leyva added, “As far as flavor combinations, we suggest our Medium Buffalo with a Blue Cheese drizzle or our Honey BBQ with a Ranch drizzle. You can choose any combination you’d like … the possibilities are endless.”

Company History

11.  Wings Over was founded in 1998 by Patrick Daly and Harold Tramazzo at the University of Massachusetts in Amherst. Daly and Tramazzo were disappointed with the food offerings around campus and felt that they could do better. Their wings were a hit with the other students and Wings Over quickly developed a cult following. Building on their initial success, Daly and Tramazzo opened additional locations around college campuses in the region.

12.  Over the next few decades, Wings Over’s growth was relatively slow as Daly and Tramazzo only targeted college towns. Eventually growth stalled. Around 2017, Delectable Capital, which is run by a group of college friends who had loved the Wings Over location near Cornell University, initially bought one franchise in Ithaca, New York.

13.  Although Delectable Capital was excited to be running a franchise with their favorite wings, they became frustrated with the parent company’s lack of investment in the brand. They decided to ask Daly and Tramazzo if they could purchase Wings Over. Daly and Tramazzo agreed and Delectable Capital launched a rebranding campaign, which included improving the menu, overhauling the chain’s online ordering system, and updating its design and branding.

14.  Wings Over is currently seeking franchisees across the United States.

Entrepreneur’s Franchise 500

15.  Wings Over did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Wings Over Franchise (Item 19, 2022 FDD)

• This Item 19 presents historical Gross Sales data for franchised and company-owned Wings Over businesses that were open for the entire 2019 fiscal year (October 1, 2018 to September 30, 2019), the entire 2020 fiscal year (October 1, 2019 to September 30, 2020), and the entire 2021 fiscal year (October 1, 2020 to September 30, 2021), respectively, with certain exceptions (as described below).

• Wings Over has not audited or verified this information. Wings Over relied solely on the information provided through each outlet’s point-of-sale computer systems.

• “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 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.

Part 1 – Gross Sales for Franchised Outlets

• Part 1 below presents Gross Sales information for certain franchised outlets in operation during fiscal years 2019, 2020, and 2021.

• Gross Sales presented for fiscal year 2019 were generated by 30 of 34 franchised outlets operating during that fiscal year. The information provided does not include 3 franchised outlets that closed permanently during that fiscal year, nor 1 franchised outlet that was reacquired by Wings Over during that fiscal year.

• In fiscal year 2019, 13 (43%) of the 30 reported franchised outlets met or exceeded the average Gross Sales figure for those 30 outlets, and 17 (57%) of the 30 reported franchised outlets did not meet or exceed that average Gross Sales figure.

• Gross Sales presented for fiscal year 2020 were generated by 27 of the 30 franchised outlets in operation during that fiscal year, including 1 franchised outlet that operated for all but 1 month of the fiscal year and then closed permanently. The information provided does not include 1 other franchised outlet that ceased operating under a franchise agreement during fiscal year 2020, nor 2 franchised outlets that were reacquired by Wings Over during that fiscal year.

• In fiscal year 2020, 12 (44%) of the 27 reported franchised outlets met or exceeded the average Gross Sales figure for those 27 outlets, and 15 (56%) of the 27 reported franchised outlets did not meet or exceed that average Gross Sales figure.

• Gross sales presented for fiscal year 2021 were generated by 25 of 31 franchised outlets operating during that fiscal year. The information provided does not include 4 franchised outlets that opened during that fiscal year, 1 franchised outlet that operated for all but 1 month of that fiscal year and then closed permanently, and 1 franchised outlet that closed for approximately 3 months during that fiscal year due to a fire on the premises of a business located next door.

• In fiscal year 2021, 10 (40%) of the 25 reported franchised outlets met or exceeded the average Gross Sales figure for those 25 outlets, and 15 (60%) of the 25 reported franchised outlets did not meet or exceed that average Gross Sales figure.

2019

• Number of Outlets:  30
• Highest Gross Sales:  $3,344,413
• Average Gross Sales:  $1,395,054
• Median Gross Sales:  $1,280,766
• Lowest Gross Sales:  $546,209

2020

• Number of Outlets:  27
• Highest Gross Sales:  $3,202,274
• Average Gross Sales:  $1,459,867
• Median Gross Sales:  $1,432,480
• Lowest Gross Sales:  $491,856

2021

• Number of Outlets:  25
• Highest Gross Sales:  $2,802,076
• Average Gross Sales:  $1,457,093
• Median Gross Sales:  $1,346,330
• Lowest Gross Sales:  $631,164

Part 2 – Gross Sales of Company-Owned Outlets

• Part 2 below presents Gross Sales information for certain company-owned outlets in operation during fiscal years 2019, 2020, and 2021.

• Gross Sales presented for fiscal year 2019 were generated by 7 of the 8 company-owned outlets operating during that fiscal year, including 3 of the 4 company-owned outlets that opened during that fiscal year and the 1 franchised outlet that was reacquired by Wings Over or its affiliate during that fiscal year. The information provided for fiscal year 2019 excludes 1 company-owned outlet that opened during that fiscal year but was in operation for less than 6 months of that fiscal year.

• In fiscal year 2019, 2 (29%) of the 7 reported company-owned outlets met or exceeded the average Gross Sales figure for those 7 outlets, and 5 (71%) of the 7 reported company-owned outlets did not meet or exceed that average Gross Sales figure.

• Gross Sales presented for fiscal year 2020 were generated by 8 of the 8 company-owned outlets operating during that fiscal year, including 1 company-owned outlet that closed for approximately 4 months during that fiscal year due to the impact of the COVID-19 pandemic, and 2 franchised outlets that were reacquired by Wings Over or its affiliate during that fiscal year.

• In fiscal year 2020, 4 (50%) of the 8 reported company-owned outlets met or exceeded the average Gross Sales figure for those 8 outlets, and 4 (50%) of the 8 reported company-owned outlets did not meet or exceed that average Gross Sales figure.

• Gross Sales presented for fiscal year 2021 were generated by 6 of the 9 company-owned outlets operating during that fiscal year. The information provided for fiscal year 2021 excludes 1 new company-owned outlet that opened during that fiscal year and 1 existing company-owned outlet that closed during that fiscal year, both of which were in operation for less than 6 months; and 1 company-owned outlet that was sold to a franchisee during that fiscal year.

• In fiscal year 2021, 3 (50%) of the 6 reported company-owned outlets met or exceeded the average Gross Sales figure for those 6 outlets, and 3 (50%) of the 6 reported company-owned outlets did not meet or exceed that average Gross Sales figure.

2019

• Number of Outlets:  7
• Highest Gross Sales:  $2,829,568
• Average Gross Sales:  $1,207,072
• Median Gross Sales:  $692,185
• Lowest Gross Sales:  $376,007

2020

• Number of Outlets:  8
• Highest Gross Sales:  $2,778,952
• Average Gross Sales:  $1,010,640
• Median Gross Sales:  $1,247,651
• Lowest Gross Sales:  $342,439

2021

• Number of Outlets:  6
• Highest Gross Sales:  $3,114,960
• Average Gross Sales:  $1,726,916
• Median Gross Sales:  $1,604,137
• Lowest Gross Sales:  $751,957

• “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 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.

• The products and beverages sold at all of the above locations are similar to those that will be offered by you, including boneless chicken wings, bone-in chicken wings, ribs, specialty sandwiches, and Coca Cola products. The outlets obtained the majority of sales from carry-out and delivery services.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Wings Over Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️