Native Grill and Wings Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,017,000 - $2,905,000
Franchise Fee
$50,000
Min Cash Required
$50,000
Total US Locations
20
Business Summary
Native Grill and Wings operates casual dining restaurants offering a wide variety of quality food and spirits, with a focus on fried chicken wings and various sauces. Native Grill and Wings restaurants also serve hamburgers, sandwiches, pastas, pizzas, chicken, seafood, and desserts in a relaxed, sports-themed, family-friendly environment. These restaurants provide dine-in and take-out services, with optional catering and delivery.
Corporate History
Native Grill and Wings Franchising, LLC was originally formed in September 2015 as an Arizona limited liability company. Its primary purpose was to assume existing Native Grill and Wings franchise agreements from its predecessor, Native New Yorker Franchising, LLC (which later became NGW, LLC). The company re-domesticated to Delaware in December 2021. Native Grill and Wings began offering and selling its own franchises in April 2020. The brand focuses exclusively on franchising its restaurant concept and has never directly owned or operated a Native Grill and Wings restaurant.
Financial Overview
Investment Range
$1,017,000 - $2,905,000
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$50,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$725,000
Equipment Costs (High)
$2,430,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Native Grill and Wings' audited financial statements for the fiscal years ended December 25, 2023, December 26, 2022, and December 27, 2021, received an unqualified opinion from the independent auditors. This indicates that the company's financial position, results of operations, and cash flows are presented fairly in all material respects, in accordance with generally accepted accounting principles. The auditors did not note any concerns regarding the company's ability to continue operations as a going concern.
Financing Details
Native Grill and Wings does not offer any direct or indirect financing to its franchisees. Additionally, Native Grill and Wings does not guarantee any notes, leases, or other obligations that franchisees may incur from third-party lenders.
Performance Metrics
Total US Locations
20
Franchised Units
20
Corporate Units
0
Avg Square Footage
4,000
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Native Grill and Wings' parent company, FAT Brands, Inc., was involved in two concluded litigation cases. The first was a class action lawsuit filed in March 2022 by a putative investor, alleging false and misleading statements in SEC filings related to a Los Angeles Times story. This case was settled in August 2022 with FAT Brands agreeing to pay $2.5 million in cash and $500,000 in Class A common stock to the class plaintiffs, and it was dismissed in February 2023. The second case, settled in October 2023, involved allegations from the Virginia State Corporation Commission that Native Grill and Wings' affiliate, Fatburger North America, Inc., offered and sold three Virginia franchises without being properly registered between December 2020 and August 2021. Fatburger North America, Inc. settled without admitting wrongdoing, offering rescission to affected franchisees and paying $27,000 to the Commonwealth of Virginia. No other litigation is disclosed for Native Grill and Wings.
Bankruptcy History
Native Grill and Wings has no bankruptcy history to report for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Native Grill and Wings franchisees must provide written notice between 180 and 360 days before the current term expires. They must not be in default of any agreements, sign the then-current franchise agreement and related documents (including a general release), and pay a $5,000 renewal fee. Additionally, franchisees are required to remodel their restaurant, upgrading furniture, fixtures, and equipment to meet current brand standards, with a cap of $300,000 for such upgrades, and extend their lease for the duration of the new renewal term.
Training & Support Program
Franchisor Assistance
Native Grill and Wings provides franchisees with comprehensive pre-opening and ongoing support. Before opening, the franchise offers access to its operations manual, specifications for required goods and services, and assistance in site selection and lease approval. It also provides layout, design criteria, architectural renderings, a décor package, and approval of the restaurant's construction and design. Initial training programs are provided, followed by 7 to 14 days of on-site assistance from a training team before and immediately after opening. Ongoing support includes periodic training programs, guidance and recommendations for improving operations, administration of a Brand Fund for marketing, and maintenance of a corporate website with a dedicated local webpage for each restaurant. The franchisor may also provide additional training or assistance upon request, conduct periodic field visits, hold conferences, and negotiate purchase agreements with suppliers for discounted prices.
Initial Training Hours
218
Training Location
Franchised Restaurant in Phoenix, Arizona, and at the franchisee's location
Ongoing Support
After opening, Native Grill and Wings provides periodic training programs and offers guidance and recommendations to help franchisees improve their restaurant operations. The franchise also administers a Brand Fund for marketing and maintains a corporate website, including a local webpage for each restaurant. Additionally, Native Grill and Wings may offer requested additional training or assistance, conduct periodic field visits for on-site consultation, host conferences to discuss business issues, and negotiate purchase agreements with suppliers for discounted prices.
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
Protected
Staff Count
12
Territory Size Requirements
Native Grill and Wings' territory is defined to include a minimum population of 70,000 people. The specific boundaries can be determined by various methods, such as a protected radius, zip codes, or municipal boundaries.
Staffing Notes
Native Grill and Wings requires franchisees to hire at least one General Manager for daily on-site supervision, who must work at least 40 hours per week, with half those hours during normal operating times, and successfully complete all required training. Additional Managers can be hired to assist, and they also need to complete training. The Managing Owner, an approved owner, must actively supervise the General Manager and other Managers and assume on-site supervision if the General Manager is unavailable. All employees with access to confidential information must sign a Confidentiality Agreement, and certain employees must be hired before opening for training.