Detroit Wing Company
Detroit Wing Company offers modern fast-casual carryout chicken wings and related menu items. Known for innovative dining experiences, it operates in the competitive quick-service restaurant sector.
Detroit Wing Company franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations of a DWC franchise ranges from $506,436 to $662,283. This includes an initial payment of $30,000 that must be paid to the franchisor or its affiliate(s) [p.1].
What is the initial franchise fee?
The initial franchise fee for the first franchised restaurant is $30,000 plus an additional amount between $0 and $10,000 for initial inventory purchases. For each subsequent restaurant, the initial franchise fee is the then-current initial franchise fee minus $20,000 [p.173].
What are the ongoing royalty and advertising fees?
The ongoing weekly royalty fee is six percent (6%) of the Restaurant's Gross Sales, collected via electronic funds transfer each Wednesday for the previous week. Additionally, there is an authorization to estimate Gross Sales if a weekly report is not submitted on time, with the franchisee responsible for any staff time used to true up the fees due. For advertising, the franchisee authorizes the company to collect a Marketing Fund Fee in the same manner as the royalty fee, which will be spent on maintaining and administering the brand, website development, and marketing activities as outlined in [p.38].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically 10 years [p.69], and you have an option to renew for a fee or transfer the franchise agreement to a new or existing franchisee, at which point a transfer fee is typically paid [p.69].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but the franchisor has the right to refuse such a transfer for good cause [p.290]. The franchisor may also exercise a right of first refusal to purchase the franchise in such cases [p.6].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity, not exceeding 30 days, to do so. [p.6] Additionally, the Illinois Franchise Disclosure Act provides a 30-day cure period for termination due to 'good cause.' [p.287]
What financial requirements — net worth and liquid capital — do I need to qualify?
You must satisfy the franchisor's then-current financial requirements, which include an analysis of your net worth, debt-to-equity ratios, and capitalization. These requirements are detailed on page [p.121] of the FDD. Additionally, if a Principal Owner’s net worth is used to meet these financial requirements, that owner must provide current certified financial statements.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. Your Development Territory and Designated Area are not protected from competition by other franchisees, company-owned or affiliate-owned restaurants, or other channels of distribution controlled by the franchisor [p.41, p.7]. This includes enclosed malls, institutions, airports, parks, casinos, and sports arenas where the franchisor may open additional locations regardless of your territory [p.42].
What training and ongoing support does the franchisor provide?
The franchisor provides an approximately 2-week (80-hour) management training program conducted several times per year at locations in Eastpointe, Michigan or Detroit. This includes both classroom instruction and on-the-job training covering various aspects of restaurant operations. Additionally, for new franchisees, the franchisor offers opening assistance for a minimum of 5 days, with staff training before and after the Restaurant opens to the public [p.36].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2021, there were 3 franchised outlets open and operating under a license agreement with Eastpointe. This information does not specify the number of closed or terminated outlets [p.58].
Does the franchisor share any financial performance or earnings information?
The franchisor only shares financial performance information as specified in Item 19 of the Franchise Disclosure Document. According to [p.205] and [p.288], no other financial performance information is authorized to be shared, and if such unauthorized information is provided, it should not be relied upon by the prospective franchisee.
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale only the Menu Items and other approved food and beverage products that the franchisor designates and approves from time to time [p.91]. You may not offer or sell any other product or service at the Location without prior written consent [p.91]. Regarding supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than similar items purchased on your own [p.4].