East Coast Wings
East Coast Wings offers casual dining restaurants focusing on chicken wings, sandwiches, burgers, and ribs. Known for its variety of flavored wings, this franchise operates in the quick-service restaurant sector.
East Coast Wings franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open the first restaurant ranges from $468,868 to $1,232,845, which includes an $80,000 development fee and the initial investment to open and commence operations of the first Restaurant. This amount does not include additional marketing spend, which is required to be at least $7,500 to $10,000 depending on the size of the unit and trade area [p.24, p.32, p.41].
What is the initial franchise fee?
The initial franchise fee is $40,000, which is paid upon execution of the Franchise Agreement and is deemed fully earned and non-refundable upon payment. [p.12, p.77]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is typically the greater of five percent (5%) of the Gross Sales generated by the Franchised Business during the preceding month or $4,850 [p.77]. Additionally, franchisees must participate in all advertising and sales promotion programs established by the franchisor, with no specific mention of a separate advertising fee [p.97].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is 10 years [p.166]. You have the option to extend this initial term for three additional five-year periods [p.184]. Additionally, you may submit a request to renew the agreement for up to two additional terms of five years each, provided you comply with certain conditions and provide notice six to nine months before the end of the current term [p.76].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your ownership of the franchise, but it must be approved by the franchisor for good cause. Good cause includes conditions specified in the Franchise Agreement [p.209]. The franchisor also has a right of first refusal to purchase the franchise if it is offered for sale [p.6, p.201].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement only for good cause, which includes the franchisee's failure to comply with any lawful provision of the franchise agreement and failing to cure such failure after receiving written notice and a reasonable opportunity to cure, not exceeding 30 days [p.201]. Additionally, termination is generally not allowed without reasonable cause as per Virginia Retail Franchising Act [p.204].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on the requirement for a 3-month cash reserve to cover operations but does not provide specific details about net worth or liquid capital requirements for qualification as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. Both your Development Area [p.44] and Designated Territory [p.43] are protected only from other Restaurants using the Proprietary Marks and System at traditional locations; however, the franchisor retains the right to open additional locations at Non-traditional Sites within these areas. Additionally, you may face competition from other franchisees, outlets owned by the franchisor, or other competitive brands controlled by them [p.44][p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program at their corporate headquarters or another designated facility, which includes training for Franchisee and other management personnel. This can be expanded to additional owners or managers if there is a fee. The franchisor may also provide IT support as a backup to third-party suppliers during the transition to a new POS system [p.26]. For ongoing operations, franchisees must participate in and support training procedures, purchasing, marketing, advertising, and other operational programs recommended by the franchisor [p.77].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, Chart A excludes a total of 12 franchised Restaurants that did not operate for the entire 2023 calendar year or have other specific exclusions. However, this does not directly state the current number of open franchised outlets. Additionally, there is no information given about how many franchise agreements have been terminated or closed. Therefore, this isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and if it is included in the disclosure document [p.59]. However, other than the financial performance representation contained in Item 19, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to make such representations either orally or in writing [p.62].
What am I restricted to selling, and where must I buy supplies?
You are restricted to only selling the Approved Products and Services as specified by the franchisor [p.86]. 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 other options [p.4].