Wingstop Franchise – Costs, Fees & Earning Stats
Net Worth Requirement:
Units in Operation:
$315,310 - $948,080
The company is a fast food franchise that was founded in 1994 in Garland, Texas, and began franchising in 1998. Headquartered in Dallas, TX., Wingstop is a fast food restaurant serving chicken wings, sides, and fries and has over 1,000 Wingstop locations worldwide. In this article, we will discuss the costs, fees, and earning potential of owning a Wingstop franchise.
Is Wingstop a franchise or chain?
Wingstop is best known for its delicious chicken wings with incredibly tasty sauces. The vast majority of the Wingstop restaurants are franchised, but the company also operates a small number of company-owned units. This unusual approach has proven to be successful, as Wingstop has expanded in recent years while maintaining a high level of quality control.
Franchisees must pay an initial franchise fee as well as ongoing royalties, and they are generally required to use Wingstop’s approved suppliers.
Wingstop has locations not just in the United States, but in Mexico, Canada, Indonesia, France, Singapore, Spain, the UK, and the UAE.
The company’s growth has been fueled in part by its expansion strategy. As a result of this expansion, Wingstop has become one of the more recognizable names in the chicken wing category.
How many Wingstop franchises are there?
There are currently over 1520 Wingstop franchises in operation around the world. The majority of these are located in the United States, but the company has a growing presence in other countries as well. In recent years, Wingstop has been rapidly expanding its international reach, with new franchises opening in France.
The company also plans to continue this expansion in the coming years. With its unique concept and tasty chicken wings, Wingstop is quickly becoming a global leader in the restaurant franchise industry.
How much does a Wingstop franchise cost?
A Wingstop franchise can cost anywhere from $347,600 – $759,100. Of course, the actual amount you’ll need to spend will vary depending on a number of factors, the first is the location of the restaurant. For example, leasing or purchasing a property in a busy urban area is likely to be more expensive than in a rural location.
The second factor is the size of the restaurant. A smaller restaurant will have lower start-up costs than a larger one. Finally, the level of experience of the franchisee is also a factor. These costs include opening inventory, leasehold improvements, local advertising, and promotional costs, among others. The total does exclude real estate purchase or lease costs.
Nevertheless, it’s important to have a significant amount of capital available when starting a Wingstop franchise. In addition to the initial investment, you’ll also need to pay ongoing fees, such as a 6% royalty on gross sales as well as a brand fund fee of 5% on gross sales.
There are qualifications that need to be met as a franchisee such as having a minimum net worth of $1,200,000 and liquid assets of $600,000. In addition, there is a three-store minimum purchase requirement and multi-unit management and/or experience.
If you’re serious about starting a Wingstop franchise, be prepared to make a substantial investment.
What is the Wingstop franchise fee?
The Wingstop franchise fee is $20,000. In addition to the initial fee, franchisees must also pay a development fee of $10,000.
Wingstop franchisees must have experience in multi-unit restaurant management experience and must be able to demonstrate financial stability. For those who meet the franchise ownership criteria, Wingstop offers a comprehensive training program that covers all aspects of running a successful franchise location.
How much do Wingstop franchise owners make?
Based on 1175 franchise locations and 28 company-owned locations, the average revenue per location in 2021 was $1,592,657. The highest annual revenue was $4,693,395 while the lowest was $436,801.
Profitability can vary depending on a number of factors, such as location, size of the restaurant, and how well the business is managed.
Additionally, franchise owners who are able to effectively manage their businesses and control costs are more likely to be more successful than those who are not. Rich Ross is a franchisee and he helps promote the brand.
While there is no guarantee that every Wingstop franchise owner will become a millionaire, it is possible to make a good living by owning and operating one of these businesses.
The Wolf’s Take 🍟
Wingstop is a fantastic franchise that’s carved out a reputation for making amazing wings with incredibly tasty sauces.
Beyond the food, the unit economics are also great for a fast-food franchise. Many major fast-food franchises cost well over $1 million and have average unit volumes far below wingstop.
At just about a $1.6 million average unit volume, a really strong brand with celebrities like Rick Ross promoting it, and a food niche that differentiates itself from the big burger brands – Wingstop has a bright future ahead.
If you’re interested in hearing from a Wingstop franchise owner who owns 20+ locations, check out my conversation with him!
Overall, the Wingstop franchise is a solid investment for those who are looking to get into the restaurant industry. The company has a strong brand presence and offers a delicious product that appeals to a wide range of customers. If you are interested in exploring Wingstop franchises, check out their website for more information, and as always make sure to do your own research before starting any business.