Risk Score
Pending analysis
Investment Range
$908,000 - $1,835,000
Franchise Fee
$48,000
Total US Locations
17
Business Summary
Anchor Bar operates a restaurant franchise system offering on-site casual dining and take-out. Its restaurants feature buffalo wings as their signature item, along with other food products like appetizers, sandwiches, beef, pizza, seafood, and a full bar. Anchor Bar restaurants may also provide catering and delivery services, including through third-party platforms. Each location includes a dedicated retail space for selling branded merchandise.
Corporate History
Anchor Bar Franchise & Development, LLC was formed on April 14, 2011, in Delaware. The company's heritage traces back to its affiliate, Frank and Teressa's Anchor Bar, Inc., which has operated a restaurant in Buffalo, New York, since 1935, and is credited with inventing the buffalo wing. Anchor Bar Franchise & Development, LLC began offering franchises for Anchor Bar restaurants in December 2011. While a related affiliate previously offered Anchor Bar franchises in 2004 without success, and Anchor Bar Distributing Company, LLC offered area developer franchises from 2004 to 2006, the current franchising program officially started in 2011. In 2015, Anchor Bar also entered into a Master Franchise Agreement, leading to one sub-franchise being granted in 2016.
Financial Overview
Investment Range
$908,000 - $1,835,000
Franchise Fee (Low)
$48,000
Franchise Fee (High)
$60,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$941,000
Equipment Costs (High)
$1,502,000
Working Capital
$65,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Anchor Bar has demonstrated positive financial performance. For the year ended December 31, 2024, Anchor Bar reported a net income of $416,856, which increased from $401,029 in 2023. The company also generated positive cash flow from its operating activities, totaling $472,839 in 2024. Anchor Bar's cash balance significantly increased to $1,022,196 by the end of 2024, up from $652,164 in 2023. The company also maintains positive working capital. However, the Franchise Disclosure Document itself includes a special risk highlighting that Anchor Bar's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. Despite this FDD disclosure, the independent auditor has issued a clean opinion on the financial statements, and their report does not raise any substantial doubt about Anchor Bar's ability to continue as a going concern.
Financing Details
Anchor Bar does not offer any direct or indirect financing to franchisees. This means that Anchor Bar will not provide loans, lease agreements, or guarantees for any financial obligations a franchisee might incur to start or operate their business. Franchisees are responsible for securing all their own financing through external sources.
Performance Metrics
Total US Locations
17
Franchised Units
16
Corporate Units
1
Avg Square Footage
6,000
Franchising Since
2011
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Anchor Bar reports that no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document. This indicates that Anchor Bar, its predecessors, parents, or affiliates have not been involved in any material litigation, administrative, criminal, or civil actions that meet the disclosure requirements.
Bankruptcy History
Anchor Bar has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
Anchor Bar franchisees have the option to renew their right to operate an Anchor Bar restaurant for two additional, consecutive periods of five years. To do so, Anchor Bar franchisees must provide Anchor Bar with written notice of their election to renew at least 180 days before the current term expires and return all necessary documents within 20 days. Franchisees must be in full compliance with all agreements with Anchor Bar or its affiliates and must not have any outstanding monetary obligations. A renewal fee of $3,000 is required upon delivery of the renewal notice. Anchor Bar franchisees must also sign a general release and successfully complete any required refresher training. They must not have received three or more default notices in any 24-month period during the term. The franchised premises must meet Anchor Bar's then-current requirements, and franchisees must have the right to occupy the premises for the renewal term. They also need to meet all relevant requirements for new franchisees and agree to sign Anchor Bar's then-current franchise agreement, which may contain materially different terms. Finally, Anchor Bar must not have decided to withdraw from the franchisee's market.
Training & Support Program
Franchisor Assistance
Before opening an Anchor Bar restaurant, Anchor Bar assists with several key steps. Anchor Bar reviews the franchisee's proposed location and requires the use of its designated real estate representative to find a suitable site. Anchor Bar must accept the location before a lease or contract is signed, generally within 270 days for a leased location or one year for a built location, with potential extensions. Anchor Bar provides conceptual appearance drawings and reviews the franchisee's architect's floor plans and full construction drawings for approval. Anchor Bar prescribes the menu items and designates the point-of-sale system, accounting system, and customer relations management software. It also develops proprietary ingredients and products, and may designate suppliers for merchandise, equipment, and services. Anchor Bar evaluates and may authorize the restaurant's opening after an on-site inspection, and provides an initial training program and an Operations Manual. Once the Anchor Bar restaurant is operational, Anchor Bar provides ongoing advice and guidance, and may require franchisees and their personnel to attend refresher training and periodic franchisee meetings. Anchor Bar may also provide additional training upon request or if deemed necessary. Anchor Bar evaluates and approves any advertising materials prepared by its designated company. It may periodically recommend and enforce menu prices within legal limits, and establish specifications for the restaurant's décor, furnishings, fixtures, signage, and equipment. Franchisees must contribute to an advertising fund used by Anchor Bar for system-wide promotion and must spend an additional 1% of gross revenues on approved local advertising. Anchor Bar also designates the computer and point-of-sale software and the accounting system franchisees must use, with Anchor Bar having independent access to the data.
Initial Training Hours
114
Training Location
Anchor Bar Headquarters in Buffalo, NY
Ongoing Support
After an Anchor Bar restaurant opens, Anchor Bar provides ongoing advice and guidance on operations, which franchisees must implement. Anchor Bar may require franchisees and their personnel to attend refresher training courses and periodic franchisee meetings. Additional training is available if requested or deemed necessary by Anchor Bar. Anchor Bar reviews and approves all advertising materials, and may make recommendations or establish pricing for menu items within legal limits. It also sets specifications for the restaurant's painting, décor, furnishings, fixtures, signage, facility, and equipment. Anchor Bar operates an advertising fund to which franchisees contribute, and mandates specific local advertising expenditures. Anchor Bar also requires the use of designated computer, point-of-sale, customer relations management, and accounting systems, to which Anchor Bar has direct and independent access for monitoring business operations. Furthermore, Anchor Bar may require participation in mystery shopping programs and quality assurance audits conducted by third parties.
Franchise Requirements
Ideal Candidate Profile
Anchor Bar seeks franchisees who are experienced and skilled in restaurant operations. Ideal candidates, or an approved operating partner, must complete initial training to Anchor Bar's satisfaction and participate personally in the direct operation of the franchised business. If an Anchor Bar franchisee is determined not to have sufficient restaurant experience, they are required to hire a full-time manager who meets Anchor Bar's specifications and completes the initial training program.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
limited
Territory Size Requirements
Anchor Bar territories are generally defined to include a 5-mile radius around the restaurant. However, this radius may be adjusted when Anchor Bar approves a location in a densely populated area. Each territory is also specifically defined by zip codes.
Staffing Notes
Anchor Bar requires its franchisees to personally participate in the direct operation and management of the franchised business, or an approved operating partner must do so. If Anchor Bar determines that the franchisee or operating partner lacks sufficient restaurant experience, they must hire a full-time general manager who meets Anchor Bar's specifications and completes the initial training program to Anchor Bar's satisfaction. Franchisees must maintain an adequate number of neat, clean, competent, and courteous employees to ensure maximum customer satisfaction and consistent service. All employees are required to wear uniforms as designated by Anchor Bar. Franchisees may also need to submit staffing level plans and employee function descriptions for Anchor Bar's approval. Before opening, the franchisee, their manager, and assistant manager must successfully complete Anchor Bar's initial training program. The initial training for the franchisee and general manager is approximately three weeks, while for the assistant manager and other non-active owners, it is about one week.