Wingstop Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$20,000
Investment required
$259,000 - $912,000
Royalty fee
5% to 6%

Wingstop: A Leader in the Fast-Food Industry

Wingstop is a prominent franchise in the fast-food sector, celebrated for its unique offering of cooked-to-order, hand-sauced and tossed chicken wings, boneless wings, tenders, chicken sandwiches, and fresh-cut, seasoned fries.

Since its inception in 1994 in Garland, Texas, Wingstop has quickly gained a reputation for delivering a distinctive flavor experience. By 1997, the franchise began expanding through franchise opportunities, allowing entrepreneurs to join its successful journey.

Headquartered in Addison, Texas, Wingstop remains deeply rooted in its home state. The brand stands out in the competitive fast-food market by focusing on quality and flavor.

Unlike many fast-food chains with extensive menus, Wingstop specializes in a few items, executed exceptionally well. This specialization has allowed Wingstop to establish a unique niche in the industry.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Development Fee $10,000
Franchise Fee $20,000
Rent Refer to note 5 below
Security Deposits $0 - $10,000
Architectural/Engineering Fees $7,300 - $30,000
Professional Fees $2,500 - $7,500
Leasehold Improvements $100,000 - $510,000
Business and Operating Permits $4,500 - $8,500
Décor Package $10,000 - $35,000
Furniture, Fixtures, Audio/Visual System, Equipment and Small-wares $50,400 - $153,800
Point-of-Sale, Back Office, Software and Hardware and Related Items $11,100 - $23,900
Signs $3,600 - $32,400
Opening Inventory $10,000 - $16,000
Opening Publicity and Promotions $5,000 - $15,000
Additional Funds – 3 months $25,000 - $40,000
Totals (excluding real estate purchase and lease costs) $259,400 - $912,100

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Number of units

2024
Franchised units

1,498

1,678

1,877

Company-owned units

36

43

49

Total units

1,534

1,721

1,926

Franchise Disclosure Document

Training 

Wingstop provides an extensive training program for franchisees and their staff to ensure they are well-prepared to deliver the Wingstop experience.

Initial Training For the first restaurant, initial training is provided at no cost for all required attendees. For additional restaurants, management training is also tuition-free. The training program lasts for three weeks and includes both initial and refresher training components. Attendees are responsible for their travel, lodging, and incidental expenses.

Supplemental and Refresher Training Franchisees and their managers may be required to participate in supplemental or refresher training or recertification exams. If a manager fails a recertification exam, they must reattend and complete the next available three-week training program.

Training Schedule and Costs A detailed yearly training schedule is available for review. While tuition fees for certain attendees are waived, all other expenses related to attending the training are the responsibility of the franchisee.

Training Program Completion The franchise location's opening may be delayed until two qualified and fully trained candidates are available if initial training is not satisfactorily completed. Franchisees may schedule training earlier if required by financial institutions, provided they can show proof of training completion and passing.

Territory Protection

Wingstop does not offer exclusive territory protection in the traditional sense. While franchisees are granted some competitive protection within a defined "Trade Area" around their franchise location, this does not equate to an exclusive territory where no other Wingstop franchises can operate.

Trade Area Protection Franchisees receive a defined Trade Area around their location, providing a certain level of competitive protection. However, this protection does not prevent the franchisor from opening or granting franchises for Wingstop-brand competitors outside the boundaries of the franchisee's Trade Area.

Non-Exclusive Rights Franchisees do not receive protection against competition from other distribution channels or competitive brands controlled by the franchisor, even if these are situated within their Trade Area. This means that other Wingstop-brand competitors may operate nearby, outside the specific Trade Area, without violating the franchise agreement.

Non-Traditional Venues The franchisor retains the right to conduct foodservice operations under the Wingstop marks at Non-Traditional Venues, such as airports, sports facilities, hospitals, and college campuses, regardless of their location relative to the franchisee's Trade Area. Franchisees are not protected from competition at these venues, which can be established anywhere.

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