Elevated Sports Restaurant Brand Challenges Industry’s Approach to Franchise Fees, Offers Best-In-Class Concept for 2018
In a world where franchise brands’ fees have increased significantly without any additional support justification, Buffalo Wings & Rings, a 75-unit elevated sports restaurant brand, has put out a challenge to better justify those costs.
“Franchise brands make the bulk of their revenue from successful franchise operations through a royalty stream. We feel that by strengthening the entry point to our brand, we can show strong operators that we are committed to their success, not focused on additional fees,” said Philip Schram, Chief Development Officer. “Many franchise brands have almost as many franchisees as units. How much support can you give a group like that? At Buffalo Wings & Rings we think that a limited number of franchisees owning multiple units is a win-win for everyone where the corporate resources are focused on fewer franchisees.”
Buffalo Wings & Rings’ “One Franchise Fee for Life” simplifies the franchise fee for new and expanding franchisees. Franchisees will pay a one-time $40,000 fee, allowing them to open as many approved locations as they please within an agreed upon development schedule. This development incentive is available throughout 2018.
“We have discussed this structuring with several key multi-unit operators both in and outside of our organization. We wanted to create an incentive that resonates with the message that we are in this together,” said Dan Doulen, Director of Franchise Development.
While the incentive is designed for consistent growth within the system, Schram notes that they must continue to be protective as to who is allowed to join the brand. Those interested in the Buffalo Wings & Rings franchise opportunity should have liquid capital of $300,000 or higher and a net worth of at least $1 million. The investment to open a Buffalo Wings & Rings franchise ranges between $1.2 million and $3 million.