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Wings Etc. Franchise Costs & Fees

Date of Incorporation: 1994
Franchising Since: 2005
Headquarters: Fort Wayne, Indiana

Business Description: Wings Etc., Inc. is the franchisor. Wings Etc. restaurants will have a family-oriented sports theme and will offer a wide variety of chicken wings, barbecued ribs, sandwiches, burgers and other products (for on-premises dining and carry-out) and beverages including beer, wine and liquor.

Franchise Offer: The franchisor sells franchises for the right to operate a single Wings Etc. restaurant.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ note, lease or obligation.

Training and Assistance: The franchisor will provide the initial training and familiarization course to train at least 4 people from the franchisee’s management team, which the attendees must complete to the franchisor’s satisfaction. Training will occur before the restaurant opens, at the franchisor’s headquarters in Indiana or another location it designates. In addition to the 4-week training program, a Principal Owner or the Certified Manager (if the franchisee or a Principal Owner is not acting in that capacity) must successfully complete “Manager-In-Position” training, which will take place at a Wings Etc. training restaurant that the franchisor designates. The franchisor will provide franchisees with an Opening Team to assist franchisees in the opening and initial operation of the restaurant. An “Opening Team” will consist of up to 4 individuals (the “Opening Team Workers”). The Opening Team will work for up to a total of 480 person-hours (or up to 120 hours per Opening Team Worker) at the franchisee’s restaurant over a period of time ranging from 10 to 16 calendar days at or around the time of the restaurant’s opening. The franchisor may require franchisees to attend refresher training programs.

Territory: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that it controls. The franchisor grants franchisees the right to operate a Wings, Etc. restaurant at their authorized location only.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional renewal term of 10 years is available, if requirements are met.

Obligations and Restrictions: A Principal Owner is any person who directly or indirectly owns a 10% or greater interest in the franchisee when the franchisee is a corporation, limited liability company or a similar entity other than a partnership entity. If the franchisee is a partnership entity, then each general partner is a Principal Owner, regardless of his or her percentage ownership interest. If the franchisee is one or more individuals, each individual is a Principal Owner. Franchisees must offer for sale at the restaurant all of the Menu Items and food and beverage products that the franchisor periodically requires and they may not offer at the restaurant any unapproved products or menu items or use the premises for any purpose other than the operation of a restaurant. Franchisees will be required to have certain video games and gaming machines.

Estimated Number of Units: 45

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $34,500 $34,500
Leasehold Improvements $45,000 $295,000
Furniture, Fixtures and Equipment $127,000 $203,500
Signage $4,500 $11,500
Computer System/Cash Register/POS (No back office system currently required) $21,000 $25,000
Lease & Utility Security Deposits $0 $10,000
Initial Inventory $15,000 $25,000
Insurance $2,000 $12,000
Training $12,000 $20,000
Grand Opening Advertising/Marketing $10,000 $10,000
Office Equipment and Supplies $1,000 $1,500
Liquor License $1,000 $65,000
Business License and Permits $300 $1,000
Additional Funds (3 months) $45,000 $60,000
ESTIMATED TOTAL $319,300 $779,000
Other Fees
Type of Fee Amount
Royalty 5% of Gross Sales.
National Marketing Fee 1% of Gross Sales.
Local Advertising Expenditure/Fee 1% of Gross Sales.
Audits/td> Cost of audit, which the franchisor estimates will be between $0 and $4,000, plus interest at the maximum rate allowable by law (not to exceed 18% per month).
Transfer Fee 1/2 of the then-current Initial Franchise Fee.
Administrative Fee $1,500
Renewal Fee 10% of the then-current Initial Franchise Fee.
Remodeling Not more than $125,000 during the term of the Franchise Agreement (amounts adjusted for change in the Consumer Price Index).
Late Payment Fee $100 each time a payment is not made on the due date.
Late Report Fee $100 for each delinquent report and $100 per month until the report is submitted.
Interest on the Late Payment of Fees 18% per year, or the maximum rate of interest permitted by governing law, whichever is less.
Product Testing Fee $50 - $100, per product.
Training for Substitute Certified Manager Tuition paid to the franchisor is the then-current fee, currently $500 per person, subject to change by the franchisor. Franchisees must also pay all related transportation, lodging, meals and wages, expenses for their trainees.

The above information has been taken from the FDD of Wings Etc. Year of FDD: 2016

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