Anchor Bar
Anchor Bar Franchise & Development, LLC operates in the quick-service restaurant industry, renowned for originating the first chicken wings served with blue cheese dressing.
About Anchor Bar
The Anchor Bar is a bar and restaurant in Buffalo, New York, located north of Downtown Buffalo at the intersection of Main and North Streets. The restaurant was initially established in 1935. The bar is most famous for claiming to be the birthplace of spicy chicken wings known outside the Buffalo area as Buffalo wings. Beginning in 2012, additional locations of the Anchor Bar began opening in the Greater Buffalo area as well other cities. As of 2026, there are 18 locations in operation.
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Anchor Bar franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations ranges from $908,000 to $1,315,000 if converting an existing restaurant location or from $1,210,000 to $1,835,000 if converting a non-restaurant location. [p.7]
What is the initial franchise fee?
The initial franchise fee is $60,000 and it is paid in full upon execution of the agreement [p.101]. This fee is non-refundable [p.85, p.17].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is dependent on the operational activity of franchise locations [p.74]. Advertising fees are collected into an Advertising Fund managed by the franchisor, with costs related to advertising and promotion paid from this fund [p.105]. The initial franchise fee includes a 3% royalty for the use of licensed trademarks/trade names [p.89].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is generally 10 years [p.86]. This isn't specified in the excerpts regarding renewal options.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires payment of a transfer fee. If the transferee is new, you must pay 50% of the current initial franchise fee; if existing, 25%. Additionally, the franchisor may refuse to permit the transfer for good cause, which includes but is not limited to unspecified reasons [p.11].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.148]. Additionally, the franchisor may terminate the franchise prior to expiration for good cause, such as failure to comply with the franchise agreement after receiving written notice and a reasonable opportunity to cure [p.106(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.41]. Your territory is generally a five-mile radius around your location, but you may face competition from other franchisees, company-owned outlets, and competitive brands controlled by the franchisor in densely populated areas [p.40][p.97].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes instruction manuals, classroom training, and other classes. This training must be completed by the franchisee, their manager, and assistant manager before opening the business. The training can take place at the Anchor Bar corporate headquarters or another location designated by the franchisor, and some portions may be virtual [p.39, p.103]. Ongoing support includes necessary training programs when needed, though the content and duration are subject to change [p.39].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, in 2022 there were 8 franchised Anchor Bar restaurants open for the entire year, and by 2024, this number increased to 9. One franchised restaurant closed in 2023 [p.50].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide historical financial performance representations based on the past performance of existing outlets [p.51], but it does not make any representations about a franchisee's future financial performance or authorize its employees to do so [p.53]. Additionally, the franchisor is required to defer the initial franchise fee until certain pre-opening obligations are met due to concerns with its financial condition [p.145].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling certain items, but you must purchase most of the required products, equipment, supplies, and services from suppliers designated by the franchisor or its affiliates. According to [p.27] and [p.107], this includes Coca-Cola products, proprietary food products, accounting systems, and other specified materials. You are also required to use the franchisor's designated supplier for advertising and marketing materials that need approval from them.