Risk Score
Pending analysis
Investment Range
$142,000 - $840,500
Franchise Fee
$25,500
Min Cash Required
$10,000
Total US Locations
31
Business Summary
WING ZONE operates a retail restaurant that serves chicken wings, boneless wings, chicken tenders, and sandwiches, along with related food and beverage products and merchandise. The restaurants offer a casual sit-down experience and also provide take-out and delivery services. WING ZONE also offers a Virtual Kitchen format, characterized by the preparation of diverse products in a common venue for principal or exclusive off-premises sale and delivery.
Corporate History
WING ZONE was originally established as a Georgia corporation, WZ Franchise Corporation, in September 1998, but converted to a Georgia limited liability company and changed its name to WZ Franchise, LLC on December 18, 2020. WING ZONE has been offering franchises for its restaurants since September 1998. From 2010 to 2013, it also offered franchises for full-service Wing Zone Grill & Tap restaurants, with two of these locations still operating. In December 2020, WING ZONE was acquired by Wing Zone Holdings, LLC, which is primarily owned by Capriotti's Sandwich Shop, Inc. WING ZONE also has affiliates, including Wing Enterprises, LLC, which owns and licenses its intellectual property, and WZ International, LLC, which has offered international WING ZONE franchises since 2009.
Financial Overview
Investment Range
$142,000 - $840,500
Franchise Fee (Low)
$25,500
Franchise Fee (High)
$40,000
Minimum Cash Required
$10,000
Royalty %
7%
Marketing %
3.5%
Equipment Costs (Low)
$31,000
Equipment Costs (High)
$485,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor, WING ZONE, operates under its parent company, Wing Zone Holdings, LLC. The FDD highlights a special risk that the franchisor's financial condition, as shown in its financial statements, calls into question its ability to provide services and support to franchisees. The financial statements of Wing Zone Holdings, LLC show a negative working capital of approximately $3.16 million in 2023 and $0.9 million in 2022. The company also reported significant net losses of approximately $2.98 million in 2023 and $2.63 million in 2022. While the auditor's report does not contain a going concern qualification, the FDD explicitly points out concerns about WING ZONE's financial ability.
Financing Details
WING ZONE does not offer any direct or indirect financing options to its franchisees. Additionally, WING ZONE does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
31
Franchised Units
30
Corporate Units
1
Avg Square Footage
1,300
Franchising Since
1998
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
WING ZONE has no litigation history to report.
Bankruptcy History
WING ZONE has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their WING ZONE franchise, franchisees must notify WING ZONE in writing of their desire to acquire a successor franchise at least six months before their current agreement expires. This notice should follow a business review conducted with WING ZONE between 12 and 9 months before expiration. Franchisees must have substantially complied with all contractual obligations throughout the current term and continue to do so until the term ends. They must also retain the right to occupy their current restaurant premises and agree to remodel, upgrade, and re-equip the restaurant to meet WING ZONE's then-current standards for new restaurants, regardless of cost. Additionally, to finalize the renewal, franchisees and their owners must sign WING ZONE's then-current franchise agreement (which may have materially different terms and higher fees), pay a $10,000 successor-franchise fee, and sign a general release of any claims against WING ZONE and its affiliates.
Training & Support Program
Franchisor Assistance
WING ZONE provides comprehensive assistance to its franchisees. Before opening, WING ZONE helps with site selection by providing criteria and guidance, and it reviews and approves proposed locations within 30 days. Franchisees also receive the benefit of WING ZONE's knowledge in setting up and operating the system, including guidance on equipment, furnishings, decor, layout, and signage, as well as advisory services on restaurant operations, product preparation, and employee training. WING ZONE provides template plans and designs for the restaurant premises. Initial training includes up to four weeks of in-person training in Las Vegas for the Managing Owner and one additional person, and two weeks of on-site supervision and assistance at the restaurant around its opening. This training may also incorporate virtual learning. Franchisees also receive electronic access to the confidential operations manual. For ongoing support, WING ZONE offers continuous advisory assistance in operating, advertising, and promoting the restaurant. This includes offering refresher training programs (at the franchisee's expense) for themselves and their designated employees, advertising and promotional plans and materials for local marketing, and advice on management and operations techniques. WING ZONE also conducts inspections of the restaurants and evaluates products and services as needed to maintain quality control.
Initial Training Hours
245
Training Location
Training Restaurant – Las Vegas and WING ZONE Support Center, with virtual/e-learning components.
Ongoing Support
WING ZONE provides ongoing support to its franchisees through continuing advisory assistance in operating, advertising, and promoting their restaurants. This includes offering refresher training programs, for which franchisees are responsible for the expense, for themselves and their designated employees. WING ZONE also provides advertising and promotional plans and materials for local marketing, and advice on management and operations techniques. To ensure quality, WING ZONE conducts necessary inspections of the restaurants and evaluates their products and services. Franchisees are required to attend up to two in-person annual conferences, conventions, training events, and meetings each year, totaling up to six days (excluding travel time), and are responsible for their own expenses for these events. If WING ZONE determines that retraining or additional training is necessary due to non-compliance, it may require the Managing Owner and other managerial personnel to complete up to six weeks of on-site training at the restaurant, which may incur a $10,000 charge to the franchisee.
Franchise Requirements
Ideal Candidate Profile
WING ZONE seeks franchisees who will designate one of their individual owners to serve as a 'Managing Owner' with at least a 20% ownership interest. This Managing Owner must be approved by WING ZONE and is responsible for actively managing the restaurant, dedicating their full-time energy to its operation. The Managing Owner must possess sufficient authority to make business decisions and communicate directly with WING ZONE on restaurant-related matters. For those interested in multi-unit development, WING ZONE looks for qualified franchisees with sufficient capital and managerial resources to operate multiple units.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
3
Territory Size Requirements
For single-unit franchisees, WING ZONE does not grant an exclusive territory, meaning a WING ZONE restaurant may face competition from other franchised or company-owned WING ZONE outlets. For multi-unit developers operating under a Development Rights Agreement, WING ZONE designates a specific territory. This territory's boundaries are defined by elements such as radius, zip code boundaries, county boundaries, highways, physical landforms, and city or municipality boundaries. The size of this designated WING ZONE territory is primarily based on the number of WING ZONE restaurants the developer agrees to establish, the demographics of the area, the number of distinct development areas and competitive businesses within the territory, and the availability of suitable sites. However, even within a multi-unit development territory, WING ZONE and its affiliates retain the right to establish or franchise WING ZONE restaurants in non-traditional venues (such as airports, hospitals, or virtual kitchens) or restricted venues, particularly if the developer cannot or chooses not to pursue those specific opportunities.
Staffing Notes
Each WING ZONE franchisee must designate a 'Managing Owner' who holds at least a 20% ownership interest and is approved by WING ZONE. This individual is responsible for the full-time management and operation of the restaurant and for supervising its employees. The Managing Owner can also act as the restaurant manager or appoint another person to that role, ensuring all obligations are met. At least two people, including the Managing Owner, must complete WING ZONE's full initial training program. Additionally, two other employees must complete a two-week hourly team member training program. For Virtual Kitchen locations, WING ZONE requires 2 to 3 employees in the space. Franchisees are solely responsible for all labor relations and employment practices, including hiring, promoting, and terminating staff, and must inform all personnel that they are employees of the franchisee, not WING ZONE.