Wing Snob
Initial Investment Range
$340,200 to $640,500
Franchise Fee
$30,000 to $55,000
You will operate a “fast-casual” limited sit down or carry-out Restaurant that will principally offer specially created chicken wings and sauces, multiple varieties of French fries, traditional side items, beverages, desserts and related items under the trade name “Wing Snob®” and such other trademarks that we authorize.
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Wing Snob April 18, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
Wing Snob Franchising, LLC (Wing Snob LLC) explicitly warns its financial condition calls its ability to provide support into question. Audited financials confirm this, showing a significant Member's Deficit (negative net worth) in 2023 and 2024. A large portion of 2024's income came from a one-time asset sale, not core operations. This financial weakness, also noted by the Illinois Attorney General, may impact the franchisor's ability to support your business long-term.
Potential Mitigations
- A thorough review of all financial statements and footnotes with your accountant is critical to assess the franchisor's viability.
- It is important to ask your attorney about the implications of the state-mandated risk warnings and fee deferrals.
- Discuss the franchisor's financial health and its sources of operating income with a business advisor.
High Franchisee Turnover
High Risk
Explanation
Item 20 data for 2024 reveals potentially high franchisee turnover. Five of the 32 franchised outlets operating at the start of the year either terminated, ceased operations, or were reacquired by Wing Snob LLC. This represents a churn rate of over 15%, which could indicate systemic issues, franchisee dissatisfaction, or profitability challenges. It is essential to understand the reasons behind these departures before investing in the system.
Potential Mitigations
- Contacting a significant number of former franchisees from the list in Exhibit F is crucial to understand their reasons for leaving.
- Your accountant should analyze the turnover rates over the past three years to identify any negative trends.
- Engage a business advisor to discuss the potential impact of high turnover on brand reputation and support.
Rapid System Growth
High Risk
Explanation
The system has grown rapidly, from 14 to 39 franchised units in three years, while also launching company-owned stores. This rapid expansion, combined with the franchisor's disclosed financial weakness, presents a risk that its support infrastructure for training, site selection, and ongoing assistance may not be able to keep pace with the growth. This could lead to a dilution of support quality for all franchisees as resources are stretched thin.
Potential Mitigations
- Asking current franchisees, especially those who opened recently, about the quality and timeliness of franchisor support is advisable.
- A business advisor can help you question the franchisor about their specific plans to scale their support staff and systems.
- Your accountant should review the franchisor's spending on franchisee support in relation to its revenue from franchise sales.
New/Unproven Franchise System
Medium Risk
Explanation
The franchisor began offering franchises in October 2018, making it a relatively young system. While the founders have experience operating their own locations since 2017, managing a franchise system presents different challenges. The combination of a relatively short franchise history, rapid growth, and disclosed financial weakness increases the risk associated with the unproven long-term sustainability of the franchise model and its support systems.
Potential Mitigations
- A business advisor can help you conduct extensive due diligence on the long-term viability of the brand and its market position.
- It's crucial to speak with the earliest franchisees on the Exhibit F list to understand how the system has evolved.
- Your attorney should scrutinize the agreement for protections given the relative newness of the franchise system.
Possible Fad Business
Low Risk
Explanation
The business operates in the highly competitive fast-casual restaurant sector, focused on chicken wings. While popular, such specific food concepts can sometimes be subject to shifting consumer tastes and trends. A prospective franchisee should consider the long-term market demand for this specific type of menu and the business's ability to adapt to changing market conditions. The FDD does not detail significant plans for future menu evolution beyond the current offerings.
Potential Mitigations
- Engage a business advisor to research the long-term consumer trends in the fast-casual wing market.
- Question the franchisor on their strategy for menu innovation and adapting to competitive pressures.
- Your financial advisor can help assess the business model's resilience to potential downturns in this specific food segment.
Inexperienced Management
Medium Risk
Explanation
The business experience described in Item 2 for the key executives, Brian Shunia and Jack Mashini, appears to be primarily focused on operating their own Wing Snob locations and this specific franchise since 2017. The document does not detail extensive prior experience in managing a national franchise system for other brands. While they have direct experience with the concept, managing a larger, multi-state franchise network requires a different skillset that may still be developing.
Potential Mitigations
- A business advisor can help you assess whether the management team's experience aligns with the company's growth trajectory.
- Speaking with franchisees in different regions can provide insight into the effectiveness of management's support at a distance.
- Inquire about any franchise-specific training or professional development the management team has undertaken.
Private Equity Ownership
Low Risk
Explanation
This risk, concerning potential changes in priorities due to private equity ownership, was not identified. Wing Snob LLC is presented as being owned by its individual founders. However, the Franchise Agreement gives the franchisor the right to sell or assign the entire system to any party, which could include a private equity firm in the future. Such a sale could change the company's operational philosophy and priorities without your consent.
Potential Mitigations
- Your attorney should review the assignment clause to understand your rights if the franchise system is sold.
- A business advisor can help you understand the potential impacts of a system sale on franchisee operations.
- Discussing the founders' long-term vision for the company may provide insight into the likelihood of a future sale.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD package. The franchisor, Wing Snob LLC, is presented as the primary entity, and no parent company is disclosed in Item 1. In franchising, if a franchisor is a small subsidiary of a large parent, the parent's financial health can be critical, and its financials may be required for a full risk assessment. The absence of a parent company simplifies the corporate structure in this case.
Potential Mitigations
- An attorney can help verify the corporate structure and confirm the absence of any undisclosed parent or controlling entities.
- Your accountant's review of the provided financials should confirm the franchisor is a standalone entity.
- Always ensure with a business advisor that the entity you are contracting with is the one with the primary operational responsibility.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not disclose any predecessors from whom Wing Snob LLC acquired its assets or who previously offered franchises for this system. The business appears to have been developed and franchised by the current entity from its inception. Therefore, there are no hidden historical challenges from prior entities to consider.
Potential Mitigations
- Your attorney should confirm from the disclosures in Item 1 that no predecessor entities exist.
- When analyzing any franchise, a business advisor would typically research the full history of the brand, including any predecessors.
- An accountant can help analyze the financial history of the existing entity to look for any signs of past restructuring.
Pattern of Litigation
High Risk
Explanation
Item 3 discloses that the State of Michigan imposed fines on Wing Snob LLC in 2023 for failing to register as a franchise and for making franchise sales during that period. While the matter was resolved with a $5,500 payment, this history of regulatory non-compliance is a significant red flag. It may suggest a past lack of attention to legal requirements, which could pose risks to franchisees.
Potential Mitigations
- Your attorney must discuss the implications of this past regulatory action by the State of Michigan.
- Inquire with a business advisor whether this history of non-compliance has impacted the brand's reputation.
- It is important to ask the franchisor what measures have been implemented to ensure future compliance with all state franchise laws.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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