Bottom line
- Total investment $415K – $1.1M including a $30K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one hoots wings unit return on the cash you put in?
Unlevered ROIC · per unit
13%
Below typical band (30–60%)
Overview
About
Franchisees operate quick-service or casual-dining wing restaurants under the Hoots Wings brand, managing food preparation, inventory, staffing, and customer service. Daily operations involve coordinating kitchen production, managing front-of-house service, tracking sales, and ensuring compliance with brand standards while remitting 5% of gross sales as royalties.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-growth wings concept with aggressive expansion (33%), undisclosed unit economics, and documented litigation involving franchisor affiliates over contract disputes and unpaid royalties presents meaningful profitability and legal risks.
Score breakdown · what drove the 64 / 100 rating
- 01MINORNo Item 19 financial disclosure (average unit volume and net income not provided) - impossible to assess actual profitability or ROI on $414.5K-$1.132M investment
- 02MINORAggressive unit growth (33.3% YoY) with only 14 total units suggests either rapid expansion phase with unproven model or cherry-picked growth period
- 03HIGHMultiple litigation cases involving franchisor affiliates covering breach of contract, trademark disputes, non-compete enforcement, and unpaid royalty arbitrations indicate systemic disputes with franchisees
- 04HIGHGoing Concern status is ambiguous - requires clarification on whether this applies to franchisor stability or specific unit performance issues
- 05MED5% royalty on gross sales with no disclosed net income prevents assessment of actual franchisee profitability or break-even timeline
- 06HIGHBankruptcy-related adversary proceeding in litigation history suggests financial distress within franchise system
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
hoots wings · FDD (2023) PDF