How To Read Atomic Wings’ Franchise Disclosure Document (FDD)

Atomic Wings, the NYC-based chicken wing franchise, is known and loved for its all-natural, hormone-free wings and 14 proprietary flavors. For aspiring franchisees, it’s important to understand what goes on behind the franchise’s success. Those considering joining the Atomic Wings family will especially want to know the initial investment required and the potential earnings they can expect.

The Franchise Disclosure Document (FDD) is a vital resource in understanding any franchise. Comprising 23 items, the FDD serves as a guide to assess how well a franchise aligns with your business objectives. Let’s walk through Atomic Wings 2024 FDD to learn more about the brand.

Item 1: The Franchisor, Its Predecessors, and Affiliates - This section offers a snapshot of Atomic Wings’ business, its history and its place in the industry.

• Atomic Wings, founded in 2006, is a fast-casual restaurant concept specializing in Buffalo-style chicken wings and related menu items. Competing in the well-established wing restaurant market, Atomic Wings focuses on densely populated suburban or urban areas, offering dine-in, delivery and take-out services, and emphasizing chicken that is Halal-certified and hormone/antibiotic-free.

Item 2: Business Experience - This item sheds light on the expertise of Atomic Wings leadership team, which can be a crucial factor for the success of franchisees given their necessary ongoing relationship with the franchisor.

• CEO – Zaki Omar has been CEO since January 2017 and is also the president of Capital Brands Group. Previously, he was a global account representative at Zensar in New York and he has also been a Dunkin Donuts franchisee since 2007.
• President – Rafey Ray Omar has been president since January 2017 and CEO of Capital Brands Group. He has also been a Dunkin Donuts franchisee since 2007.
• Vice President of Development – Michael Domico has held the position since July 2022 and serves as an area representative for Missouri and parts of Kansas. He has been a Firehouse Subs franchisee since 2013, and was an area representative for Firehouse Subs in Missouri from 2013 to 2021.
• Vice President of Operations – Michael Harmon has been vice president of operations since 2022 and an area representative for Indiana since 2021. He has been a Firehouse Subs franchisee since 2010, currently operating eight locations in Indiana.

Item 3: Litigation - This section discloses any litigation history.

• Atomic Wings boasts a clean litigation history, indicating stability.

Item 4: Bankruptcy - This section reveals any past bankruptcies involving the franchisor or its management. Such a history may suggest financial instability.

• Atomic Wings doesn’t have a history of bankruptcy, signaling financial reliability.

Item 5: Initial Fees - Prospective franchisees can gauge the initial investment required to join Atomic Wings, including the franchise fee, which is paid directly to the franchisor.

• The initial franchise fee for Atomic Wings is $25,000.

Item 6: Other Fees - This section elaborates on ongoing fees, providing clarity on financial obligations.

• Franchisees must pay an ongoing royalty fee of 5%, a worldwide creative marketing fee of 2% and a local advertising fee of 1% of gross revenue.

Item 7: Initial Investment - This section lays out a detailed estimate of startup costs, offering transparency on where investment funds will be allocated.

• The total investment necessary to begin the operation of an Atomic Wings Franchise ranges from $230,900 to $588,500.

Item 8: Restrictions on Sources of Products and Services - In this section, the brand specifies approved suppliers, which influence franchisee costs.

Item 9: Franchise Owner's Obligations - This item outlines the responsibilities expected from franchisees.

Item 10: Financing - This item describes available financing options, which should be a consideration in startup planning.

• Atomic Wings does not offer finance assistance. 

Item 11: Franchisor's Assistance, Advertising, Computer Systems and Training - This item describes the training and support offered by the franchisor, as well as advertising expectations.

• Training and Support: Franchisees receive comprehensive initial training, including on-site pre-opening assistance and headquarters training.
• Site Selection: Assistance is provided in evaluating and approving restaurant locations, including remote and potentially on-site evaluations.
• Operational Guidance: Ongoing support includes regular site visits, evaluations and access to updated operational techniques, training programs and seminars.
• Approved Suppliers: Franchisees are given a list of approved suppliers for all necessary equipment, inventory and supplies, ensuring consistency and quality.
• Advertising: Franchisees must submit an annual advertising plan for review and adhere to the guidelines of the Worldwide Creative Marketing Fund.
• Local Advertising Requirements: Franchisees must spend at least 1% of their restaurant's gross sales each month on local advertising, with all advertising requiring prior approval. An annual advertising plan must be submitted and approved, with monthly updates on expenditures.
• Advertising Cooperative Contributions: In regions with multiple Atomic Wings restaurants, franchisees must join an advertising cooperative, contributing up to 2% of their gross sales. These cooperatives manage regional advertising and promotional activities, subject to corporate approval.
• Website and Social Media Control: The franchisor retains exclusive rights to all internet and electronic commerce activities related to the system. Franchisees cannot establish their own websites or social media accounts without prior written approval and must comply with corporate guidelines for any authorized online presence.

Item 12: Territory - This item provides a comprehensive overview of the territory rights extended to franchise owners. Prospective franchisees must ensure that these regulations align with the location they are targeting.

• Atomic Wings territories are not exclusive, meaning franchisees may face competition from other outlets.

Item 13: Trademarks - This item provides information on the franchisor's trademarks, including guidance on when and how to use them.

Item 14: Patents, Copyrights, and Proprietary Information - This is where the brand will disclose any patents, copyrights or proprietary information owned by the franchisor.

Item 15: Obligation to Participate in the Actual Operation of the Franchise Business - 

This section outlines the obligations of franchise owners concerning their involvement in business operations. Candidates should verify that these requirements align with their desired objectives and work-life balance.

• Atomic Wings requires franchisees to hire and maintain a general manager and two managers to oversee daily operations. 

Item 16: Restrictions on What the Franchise Owner May Sell - This item describes any limitations on product or service offerings.

Item 17: Renewal, Termination, Transfer, and Dispute Resolution - The terms for franchise agreement renewal and termination are clarified.

• Atomic Wings offers a 10-year term, with the option for franchise owners in good standing to renew for one additional 10-year term.

Item 18: Public Figures - This item indicates any public figures who are employed to promote the brand.

• Atomic Wings doesn’t employ public figures in its promotion.

Item 19: Financial Performance Representations - Prospective earnings can be estimated based on the financial performance of existing locations, which are disclosed in item 19.

• Atomic Wings does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets.

Item 20: Outlets and Franchise Owner Information - This item discloses the number of operating outlets, providing insights into recent developments.

• Atomic Wings reported a total of 17 locations in operation at the end of 2023, increasing the unit count by two locations from the previous year.

Item 21: Financial Statements - Franchisor financial statements are included for assessment.

Item 22: Contracts - All required contracts are provided for review with legal counsel and need to be signed by the franchise owner.

Item 23: Receipt - This section acknowledges receipt of the FDD, granting candidates time for thorough review before committing.

The FDD offers a wealth of information on the operations of a franchise brand. It’s essential for prospective franchisees to study it diligently and seek legal guidance if necessary. With a comprehensive understanding, aspiring franchisees can confidently make informed decisions about joining the Atomic Wings franchise family.

To find out more information on costs to buy this franchise, please visit https://1851franchise.com/atomicwings.