Franchisee Satisfaction Report

East Coast Wings was born in the year 1995 when a small, individual wing restaurant concept in Winston-Salem, NC was opened. In 2001, two restaurant entrepreneurs with over 40 years of combined restaurant experience bought this individually owned store, then reworked and expanded upon the original East Coast Wings concept and menu to introduce a new and improved Buffalo-style restaurant that is known today as East Coast Wings & Grill. These two entrepreneurs set out to change the stereotype of the traditional Buffalo-style wing restaurants in America that typically do not place importance on food and family atmosphere as much as beer sales and the bar scene. East Coast Wings was born to prove to America that not only can you enjoy Buffalo-style wings with a heat index that spans nine levels, but also choose from multiple flavors, fresh salads, wraps, burgers and sandwiches, all prepared fresh to order. They also envisioned a casual dining experience that delivered an atmosphere where anyone, especially families, could enjoy famous East Coast Wings Buffalo-style wings and variety menu. Therefore, they created a warm and inviting décor, scaled down the bar atmosphere, and evolved East Coast Wings into a causal, full-service dining experience. By 2002, by popular demand, they began building the foundation of the East Coast Wings franchise system.

By 2004, the basics of building the franchise system had been accomplished and they were ready to begin growing this brand. Unique to other franchise philosophies, this brand believes in growing fast enough to serve the increasing requests to open a restaurant, but slow enough to ensure that we have the proper fit between franchisee and franchise, as well as the ability to continually provide superior franchisee support. In 2007, the brand evolved even further with the change to East Coast Wings & Grill, to ensure that we stand out as not only ‘America’s Best Wings’, but to also include the wide variety of fresh items offered on the menu in addition to wings, including chicken, beef and shrimp, which all allow customers to experience our unique flavor and heat combinations.

By mid-2011, the brand grew to 19 operating stores in North Carolina, and has maintained 31 consecutive quarters of same stores sales growth. We have developed two different prototype stores to allow us to adapt to all types of market sectors, with creative market saturation, and to allow us to further service multi-unit owners and Area Developers alike.

East Coast Wings & Grill gives a franchisee candidate the opportunity to be a part of growth and strategic expansion, while having the support and guidance of a franchise system in place already to give continued corporate support and the benefit of brand recognition through use of our trademarks, logos, proprietary information and recipes.

We have franchising opportunities available currently throughout the United States for single and multiunit development. We have a variety of unit prototype sizes for consideration, depending upon the desired development strategy, market area and financial ability of the potential franchisee. Previous restaurant experience is required at minimum for an inside partner, and every potential franchisee needs a credit score of 650 or above with no bankruptcies, mortgage defaults, and a clean criminal record/background check.

Single unit development pertains to license rights granted to an individual franchisee to operate a single location within a specified territory. If a current franchisee is interested in acquiring an additional location, then a new franchise agreement can be signed to obtain another location, providing all criteria required by corporate has been met and approved. Or, the franchisee may wish to explore our Area Development model. All Franchisee Agreements have a primary term of 10 years.

An Area Development model offers the franchisee the option to purchase license rights for three to five locations at one time, under an Area Development Agreement for a specified territory. A development schedule and timeline for each location is outlined within the Area Development Agreement, and a Franchise Agreement is signed prior to beginning development of each location.

Commonly asked questions and answers about this franchise opportunity.

How do I get started?
To pursue an interest for an East Coast Wings & Grill franchise, you should request an information package that includes an overview of the brand along with an application package to be completed. Once your fully completed application package has been submitted to corporate, including the last two years tax returns for all applicants, then you will receive a copy of the most recent Franchise Disclosure Document (FDD) for review. This document contains all information about our brand as required by the Federal Trade Commission (FTC) and /or the particular state in which your East Coast Wings & Grill franchise will be located. This document contains a summary of expectations and explanations associated with opening an East Coast Wings & Grill franchise, including certain franchisee reported revenue and expense information contained in item 19 of the FDD, and a copy of the Franchise Agreement and Area Development Agreement for review.

What are the qualifications and criteria for a new franchisee?
The following qualifications, among others, are essential for becoming a franchisee candidate:

• The understanding behind the strength of branding within a franchise system
• The desire to learn the system and manage/operate your franchise based on the East Coast Wings & Grill mission and core values
• The desire and ability to manage finances, keeping line items in line to sustain maximum profitability
• The ability to meet minimum financial qualifications of approximately $250,000 (excluding retirement accounts) in liquid assets per store, and $850,000 net assets
• A strong desire to succeed by understanding the industry and being willing to continue to learn and evolve with the franchise as we all grow

Additional details regarding fees and development expenses are outlined in our Franchise Disclosure Document. Additional qualifications may be imposed at ECW’s absolute discretion.

How does it work if I have an investment partner?
You may apply for consideration as a franchisee candidate either as an individual or with a partnership (spouses are always included on the Franchise Agreement). All partners will be required to complete and submit an application package complete with last two years tax returns. The strength of the partnership as a whole will be evaluated to meet all minimum qualification guidelines.

What should I expect for the initial investment expense for a franchise?
East Coast Wings & Grill offers the opportunity to become a strategic partner to operate a warm and inviting casual restaurant that focuses on “fresh”, and specializes in a unique dining experience that offers 675 different combinations of flavors and heat. The initial investment to get an East Coast Wings & Grill restaurant open ranges from approximately $250,000 to $650,000, depending upon several variables such as store size and location. This information is outlined in more detail in item 7 of our Franchise Disclosure Document.

How do you determine what territory to award?
Territories are established based on several factors, including where the franchisee is located, the area(s) of interest to the franchisee, and what cities/states are still available for development. Franchisees work extensively with our Real Estate and Unit Development teams to narrow focus to a specific territory, based on certain demographic criteria and without infringing on other current location radii, as protected in the Franchise Agreement.

Does East Coast Wings & Grill offer financing?
East Coast Wings & Grill is an SBA Registered brand, and can recommend SBA lending programs, and potential third party sources to qualified franchisees. However, we do not offer or guarantee that franchisees will be able to obtain financing. These details are to be explored on a case-by-case basis with each franchisee.