Atomic Wings Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$180,900 - $538,500
Franchise Fee
$20,000
Total US Locations
17
Business Summary
Atomic Wings operates fast-casual restaurants that specialize in Halal, hormone and antibiotic-free Buffalo-style chicken wings. The menu also features a variety of other items, including appetizers, burgers, sandwiches, chili, soups, Mexican food, desserts, and beverages. With prior written approval, Atomic Wings restaurants may offer additional menu items such as gyros, falafel, and chicken over rice, and may also serve beer and wine if permitted by law. These restaurants offer dine-in, delivery, and take-out services.
Corporate History
Atomic Wings was founded as a New Jersey corporation on July 10, 2006, and began offering franchises in the same year. The brand operates fast-casual restaurants specializing in Buffalo-style chicken wings. In its early history, a prior CEO licensed Atomic Wings branded products to a restaurant in New York City, and a franchise location was reacquired and operated by a prior CEO and Partner from June 2016 through January 2017. Atomic Wings ceased offering Fractional Franchise and Express opportunities in March 2017. The company expanded its offerings to include area representative opportunities in August 2016. Atomic Wings does not have any predecessors, parents, or affiliates.
Financial Overview
Investment Range
$180,900 - $538,500
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$25,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$94,500
Equipment Costs (High)
$370,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The FDD highlights serious concerns about the financial stability of Atomic Wings. In its 'Special Risks' section, Atomic Wings Franchisor Inc. notes that its financial condition, as shown in its financial statements, 'calls into question the franchisor's financial ability to provide services and support' to franchisees. Furthermore, the auditor's report for the fiscal year ended December 31, 2022, explicitly 'expresses substantial doubt about the franchisor's ability to remain in business.' This means that Atomic Wings may not have the financial resources to reliably provide services or support to its franchisees. As of December 31, 2022, Atomic Wings had negative working capital and an accumulated deficit, with total liabilities exceeding its total assets. While the most recent financial statements for the fiscal year ended December 31, 2023, do not include the auditor's explicit 'going concern' qualification and show a net income for that year with increased cash, the franchisor still deemed it necessary to list this as a 'Special Risk' in the FDD issued in April 2024. Management has outlined plans to improve financial health, including opening new locations, signing more area development agreements, and managing expenses.
Financing Details
Atomic Wings does not offer any direct or indirect financing arrangements to its franchisees. Atomic Wings also does not guarantee any of a franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
17
Franchised Units
17
Corporate Units
0
Avg Square Footage
1,150
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Atomic Wings Franchisor Inc. has no litigation cases required to be disclosed in this FDD. This indicates that the franchisor and its management have no reportable legal disputes or history of litigation.
Bankruptcy History
Atomic Wings has no bankruptcy history to disclose in this FDD document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Atomic Wings franchise agreement for an additional 10-year term, franchisees must provide written notice between six and nine months before the initial term expires. They need to be in full compliance with their franchise agreement and all other agreements with Atomic Wings or its affiliates, and be current on all monetary obligations for the preceding 12 months. Franchisees must also secure a lease for the restaurant premises that is acceptable to Atomic Wings, renovate or upgrade their restaurant to meet current brand standards, and sign a general release of claims against Atomic Wings. Additionally, a successor agreement fee of $7,500 is required. The new franchise agreement may have materially different terms, though the territory boundaries will remain the same, and fees will not be higher than those offered to similarly situated franchisees. Atomic Wings reserves the right not to grant a renewal if it decides to withdraw from the franchisee's marketing area.
Training & Support Program
Franchisor Assistance
Atomic Wings provides pre-opening assistance to its franchisees by offering written materials for analyzing potential sites and markets. The franchisor conducts one complimentary remote location evaluation, with additional on-site evaluations available for a fee plus expenses. Franchisees receive prototype design plans to adapt with an approved architect and general contractor, and are loaned a Confidential Operations Manual. Atomic Wings also provides a list of approved suppliers and reviews the franchisee's grand opening advertising campaign for approval. A representative from Atomic Wings will provide up to five days of on-site pre-opening assistance and training around the restaurant's opening date, though this may be waived for a franchisee's second or subsequent restaurant.
Initial Training Hours
122
Training Location
Franchisor headquarters in Maryland, or another designated location. A portion of the training is conducted by a third-party off-site training program, such as Pal's in Tennessee.
Ongoing Support
Atomic Wings offers ongoing support to its franchisees through various avenues after their restaurant opens. This includes periodic visits and evaluations to ensure high quality, appearance, and service standards are maintained. Franchisees receive advice and written materials, including updates to the Confidential Operations Manual, concerning management, operations, new equipment, food products, recipes, and packaging. Atomic Wings also provides training programs and seminars, which may be mandatory, for franchisees and their personnel, with additional on-site training available for a daily fee plus expenses. The franchisor administers the Worldwide Creative Marketing Fund and reviews annual local advertising plans. Atomic Wings may also conduct annual franchisee meetings, which could be mandatory, and attendees are responsible for their own travel, lodging, meals, and any per-person fees charged. Franchisees must operate an approved computer system, including point-of-sale, with high-speed internet access that Atomic Wings can independently access to monitor sales and other information. The franchisor controls all social media initiatives and internet presence, and franchisees must comply with their standards regarding online promotion.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Territory Size Requirements
Atomic Wings defines the designated territory for a single franchise unit based on its location. For restaurants in urban settings, the territory will have a minimum radius of a quarter mile. For suburban locations, the territory will have a minimum radius of two miles. The actual boundaries are determined once the restaurant's location is finalized, and a two-mile buffer is maintained between other trade areas, designated territories, and development areas to prevent overlap.
Staffing Notes
Each Atomic Wings restaurant is required to have a minimum of one General Manager and two Managers at all times. These managers are responsible for the daily operation of the restaurant and must dedicate their full-time efforts to it. The General Manager and Managers must meet Atomic Wings' educational and business experience criteria and must satisfactorily complete Atomic Wings' mandatory three-week initial training program, which is conducted at headquarters, an affiliate's restaurant, or the franchisee's restaurant, and includes third-party off-site training. Franchisees are responsible for all training expenses, including program fees, travel, lodging, meals, and wages. If a General Manager or Manager has at least three years of prior restaurant management or ownership experience, they may be one of the franchise's principals. All General Managers, Managers, and other designated employees must also obtain and maintain ServSafe and TIPS (or similar) certifications at the franchisee's expense, with periodic recertification potentially required. The franchisee is solely responsible for all other employee hiring, firing, scheduling, compensation, and related liabilities.