We were formed in April 2000 to develop theDick’s Wings and Grill® restaurant franchise (“Dick’s Wings”), and are the owner, operator and franchisor of the Dick’s Wings brand of restaurants. Our Dick’s Wings franchise is currently comprised of 21 restaurants and three concession stands located in the States of Florida and Georgia. Dick’s Wings offers a variety of boldly-flavored menu items highlighted by our Buffalo, New York-style chicken wings spun in our signature sauces and seasonings. We offer our customers a casual, family-fun restaurant environment designed to appeal to both families and sports fans alike. At Dick’s Wings, we strive to provide our customers with a unique and enjoyable experiencefrom first bite to last call®
Revenue consists primarily of proceeds from the sale of food and beverage products by our company-owned restaurants and concession stands, and royalty payments, franchise fees and ad fund fees that we receive from our franchisees. Revenue increased $5,242,960 to $9,500,537 for the year ended December 31, 2018from$4,257,577 for the year ended December 31, 2017. The increase of $5,242,960 was due to increase of $4,949,157 for sales of food and beverage products by our company-owned restaurants and $293,803 for franchise and other revenue. The increase in sales of food and beverage products was attributable to the restaurants that we acquired through our acquisition of Fat Patty’s, which contributed $3,798,484of sales of food and beverages, and an increase of $1,150,672 for sales of food and beverages at our company-owned Dick’s Wings and Tilted Kilt restaurants and concession stands. The increase in franchise and other revenue was due primarily to increases of $189,362for ad fund fees and $131,244 for franchise fees that were recognized beginning January 1, 2018 due to the implementation of ASC 606, partially offset by a decrease in royalties.We expect revenue to increase during the next 12 months as we generate sales through our company-owned restaurants, continue to improve the operations of our existing Dick’s Wings and Fat Patty’s restaurants, open new Dick’s Wings and Fat Patty’s restaurants, and generate sales through our recently opened Tilted Kilt restaurant. We also expect our revenue to increase as a result of our pending acquisition of Tilted Kilt and as we acquire additional interests in other restaurant brands and potentially non-restaurant brands.