In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Wing Zone franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Wing Zone franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Wing Zone outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the Wing Zone franchise opportunity
Section V – Presentation and analysis of Wing Zone’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, high, and low gross sales for the top 25th percentile, bottom 25th percentile, and all 21 franchised Wing Zone Restaurants in the United States that were open and operating during all of 2022
- 2022 average, median, high, and low gross sales for the top 25th percentile, bottom 25th percentile, and all 14 franchised Wing Zone Restaurants in the United States that had been open for more than 10 years as of December 31, 2022
- 2022 average total sales, total prime cost, total cost of goods sold, total payroll & related, total operating expense, total non-controllable expense, total rent, Royalty Fees, National Marketing Fees, and EBITDA for the 11 franchised Wing Zone Restaurants in the United States that reported the detailed information to Wing Zone
Section VI – Key ratios, comparables, computations, and analyses for the Wing Zone franchise opportunity (exclusive content for Platinum subscribers)
Section I – Wing Zone Franchise Costs
- Wing Zone franchise costs (for traditional restaurants), based on Item 7 of the company’s 2023 FDD:
- Franchise Fee: $40,000
- Development Services Fee: $10,000
- Architectural/Engineering Fees and Project Management: $15,000 to $32,500
- Professional Services: $2,000 to $5,000
- Permits and Licensing: $3,000 to $17,000
- Rent: varies
- Security Deposits: $3,000 to $15,000
- Leasehold Improvements: $142,000 to $290,000
- Furniture, Fixtures, Equipment, and Smallwares: $100,000 to $175,000
- Interior Decor: $4,000 to $13,000
- Exterior Signage: $5,000 to $21,000
- Menu Boards: $800 to $2,500
- POS System: $10,000 to $25,000
- Training: $15,000
- Opening Inventory: $7,000 to $15,000
- Shop Launch Marketing Plan: $30,000
- Pre-Opening Mock Operations: $3,000
- Insurance (3 Months): $1,000 to $2,000
- Additional Funds for 3 Months: $30,000 to $40,000
- Total Estimated Wing Zone Franchise Costs (excluding real estate purchase and lease costs): $420,800 to $751,000
Section II – Wing Zone’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Wing Zone’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $40,000
- Royalty Fee: 6% to 7% of weekly Gross Sales
- Marketing Fund: up to 4% of weekly Gross Sales; currently, 3.5% of weekly Gross Sales
- Cooperative Advertising: up to 2% of monthly Gross Sales
Section III – Number of Franchised and Company-Owned Wing Zone Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- Outlets at the Start of the Year: 32
- Outlets at the End of the Year: 29
- Net Change: -3
2021
- Outlets at the Start of the Year: 29
- Outlets at the End of the Year: 29
- Net Change: 0
2022
- Outlets at the Start of the Year: 29
- Outlets at the End of the Year: 28
- Net Change: -1
Company-Owned
2020
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2021
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 0
- Net Change: -1
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 1
- Net Change: +1
Section IV – News Updates on the Wing Zone Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Wing Zone Franchise (Item 19, 2023 FDD)
Part 1 – 2022 Average, Median, High, and Low Annual Gross Sales for Franchised Restaurants That Were Open and Operating During All of 2022
- This historical financial performance representation discloses the unaudited average, median, and high/low annual gross sales during 2022 of all similar franchised Wing Zone Restaurants in the United States (a total of 21) that were open and operating during all of 2022.
- It also discloses the unaudited average, median, and high/low annual gross sales during 2022 of the similar franchised Wing Zone Restaurants in the United States (a total of 14) that had been open for more than 10 years as of December 31, 2022.
- This financial performance representation does not include the results of the following 13 franchised Wing Zone Restaurants: (a) 4 franchised Restaurants that opened during 2022 (and therefore were not open for the full 2022 calendar year); (b) 5 franchised Restaurants that closed permanently during 2022 (and therefore were not open for the full 2022 calendar year); (c) 2 franchised Restaurants that operate at non-traditional locations on a more limited basis whose performance results are not relevant to a franchisee acquiring a Wing Zone Restaurant franchise for a traditional location; and (d) 2 franchised Restaurants that operated at traditional locations during 2022, one of which was sold to a new franchisee during 2022 after being closed for 75 days (meaning it had different owners during 2022), and the other of which operated with non-standard hours of operation (it operated only after 4:00 p.m.) and therefore is not representative of the franchises for traditional locations granted by the disclosure document.
- Wing Zone requested financial reports from all of its franchisees for the type of information disclosed in this Item 19 (not including the gross sales information that Wing Zone derives from recurring reports and Royalty payments). Only 11 of the 21 franchisees sent Wing Zone their operating financial statements.
- These tables include all of the information supplied to Wing Zone. Wing Zone has not independently audited that information.
2022 Results for All Franchised Restaurants Open During All of 2022
- Number of Restaurants in Range: 21
- Average Unit Volume: $946,071
- Highest Sales: $1,921,235
- Lowest Sales: $335,594
- Number and Percentage of Restaurants Exceeding Average: 7 / 33%
- Median Unit Volume: $819,058
- Average Unit Volume of Top 25th Percentile: $1,540,991
- Highest Sales: $1,921,235
- Lowest Sales: $1,430,693
- Number and Percentage of Restaurants in Top 25th Percentile Exceeding Average: 4 / 80%
- Median Unit Volume of Top 25th Percentile: $1,753,453
- Average Unit Volume of Bottom 25th Percentile: $482,556
- Highest Sales: $571,991
- Lowest Sales: $335,594
- Number and Percentage of Restaurants in Bottom 25th Percentile Exceeding Average: 3 / 43%
- Median Unit Volume of Bottom 25th Percentile: $501,844
2022 Results for All Franchised Restaurants Open More Than 10 Years as of December 31, 2022
- Number of Restaurants in Range: 14
- Average Unit Volume: $1,071,394
- Highest Sales: $1,921,235
- Lowest Sales: $571,991
- Number and Percentage of Restaurants Exceeding Average: 4 / 29%
- Median Unit Volume: $908,322
- Average Unit Volume of Top 25th Percentile: $1,687,270
- Highest Sales: $1,921,235
- Lowest Sales: $1,430,693
- Number and Percentage of Restaurants in Top 25th Percentile Exceeding Average: 2 / 50%
- Median Unit Volume of Top 25th Percentile: $1,698,575
- Average Unit Volume of Bottom 25th Percentile: $687,054
- Highest Sales: $781,609
- Lowest Sales: $571,991
- Number and Percentage of Restaurants in Bottom 25th Percentile Exceeding Average: 3 / 75%
- Median Unit Volume of Bottom 25th Percentile: $699,802
Part 2 – 2022 Average Operating Financial Statement for Franchised Restaurants That Reported Detailed Information to Wing Zone
- This financial performance representation also discloses audited actual average partial operating financial statement for 2022 for 11 franchised Wing Zone Restaurants that reported the detailed information to Wing Zone.
- The table below shows the average Total Sales, Total Prime Cost, Total Cost of Goods Sold, Total Payroll & Related, Total Operating Expense, Total Non-Controllable Expense, Total Rent, Royalty Fees, National Marketing Fees, and EBITDA for the 11 franchised Wing Zone Restaurants.
Total Sales: $1,242,548 (100.00%)
Total Prime Cost (Cost of Goods Sold plus Total Payroll & Related): $929,197 (74.78%)
- Total Cost of Goods Sold: $525,678 (42.31%)
- Total Payroll & Related: $403,518 (32.48%)
Expenses
- Total Operating Expense: $170,399 (13.71%)
- Total Non-Controllable Expense: $295,868 (23.81%)
- Total Rent (Note: Included under Total Non-Controllable Expense): $40,748 (3.28%)
- Royalty Fees: $74,553 (6.00%)
- National Marketing Fees: $37,276 (3.00%)
EBITDA (Total Sales minus Total Prime Cost minus Total Operating Expense minus Total Non-Controllable Expense): $160,434 (12.91%)
- Royalty Fee at 7%: $86,978 (7.00%)
- EBITDA: $148,009 (11.91%)
- Total Prime Cost is the sum of Cost of Goods Sold plus Total Payroll & Related.
- Cost of Goods Sold includes the total cost of all food, beverages, and ancillary items used in the Restaurants.
- Total Payroll & Related includes all salary paid to management, hourly wages, taxes, and benefits paid at each franchised Restaurant.
- Total Operating Income equals Total Sales less all other line-items. The financial information in the table does not include interest, taxes, depreciation, and amortization, which must be deducted to obtain your net income or profit.
- Total Non-Controllable Expense includes total rent, in some instances personal property tax, electricity, gas, sewer, trash removal, water, local advertising, and accounting fees.
- Rent includes base rent, common area maintenance, insurance, property taxes, and (at some locations) a fee to be included on monument or pylon signs.
- Royalty Fee assumes 6% of Gross Sales that a new franchised Restaurant must pay.
- National Marketing Fees represents all contributions to National Ad Fund.
- EBITDA: This calculation uses the following formula (Total Sales minus Total Prime Cost minus Total Operating Expense minus Total Non-Controllable Expense = EBITDA).
- Total Operating Income equals Total Sales less all other line items. The financial information in the table does not include interest, taxes, depreciation, and amortization, which must be deducted to obtain your net income or profit.
- Some Wing Zone Restaurants have earned these amounts. Your individual results may differ. There is no assurance that you will earn as much.
Section VI – Wing Zone Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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