Opening a Wingstop Franchise: Info and Costs – NerdWallet

Known for their variety of—you guessed it—chicken wings, Wingstop is a mark with a lot of loyalty and customer invoke. If you ’ rhenium interest in opening a Wingstop franchise, there ’ s lots to know about its bodied structure, Wingstop franchise price, and more. Is franchising right for you ? This usher will give you the information you need to help guide you toward a decision about whether to open a Wingstop franchise of your own.

Wingstop franchise information

Wingstop has over 1,200 locations in the U.S. and other locations in multiple countries. Of their 1,300-plus worldwide locations, more than 980 are franchises. Founded in 1994, Wingstop first gear began offering franchising opportunities in 1997.

Customers love Wingstop for their diverseness of flavors, which are unique to the mark and made with proprietorship recipes. Wingstop is besides highly focused on running a robust takeout business on top of their brick-and-mortar presence, which is why many of their storefronts are smaller than the modal fast-food memory. Along with a full-bodied menu of chicken options and sides, some Wingstop locations are licensed to sell beer and wine arsenic well.

Wingstop franchise sales

According to Wingstop, franchises have high sales per square infantry proportional to the rest of the industry, with an average store doing about $ 1.25 million in annual sales. Plus, Wingstop is on the upswing in terms of chain restaurants. The fast-food chain grew 31.4 % from 2015 to 2019, posting revenues of $ 53 million in 2019. Their net income for 2019 was besides more than $ 20 million. depart of this growth is due to the company strengthening on-line sales, which rose 39 % last year. As more consumers opt for on-line order, this is particularly authoritative to keep in mind—clearly, Wingstop already has an established on-line ordering system in place, which means your sales won ’ thyroxine suffer as you try to establish one yourself.

Wingstop franchise growth

This fast-food franchise has grown quite a piece over the last three years—they have increased their count of stores by more than 38 % from 2016 to 2019. This increase isn ’ metric ton fair reflected in established markets, either. In fact, there are several different markets available for expansion, so you have respective options for where to open your Wingstop franchise. Odds are there ’ s a market close to you that Wingstop is looking to expand into, which provides an opportunity for new, manque franchisees to set up workshop.

Wingstop franchise commitment

When exploring Wingstop franchises, keep in judgment that you can merely choose a multi-store development with a minimal of three units. They besides require previous multi-unit restaurant management and development have, with a firm predilection for past franchise ownership. additionally, franchise agreements with Wingstop survive for a condition of at least 10 years.

Corporate support for opening

One of the many advantages of franchise is the support you ’ ll receive from the franchisor. This can be specially appealing to entrepreneurs without previous commercial enterprise ownership or restaurant feel. Wingstop offers support for identifying substantial estate of the realm, setting up operations, and managing construction.

Training and education

Wingstop owners are required to undergo extensive trail before they open their stores : over 19 hours of on-line prepare, 30+ hours of classroom training, and over 153 hours of in-restaurant training. This will all take place over the course of 25 days at Wingstop ’ second Restaurant Support Center, which is located in Dallas, Texas. If this is your first franchise, you ’ ll have two Opening Restaurant Trainers at your location for up to 14 days. You ’ ll besides need to potentially participate in update or extra education, which might besides include franchisees and managers.

Wingstop franchise costs

so, how much is a Wingstop franchise ? As we go through how a lot it costs to open up a Wingstop franchise, remember that these fees vary depending on your location and any updates the company makes. These Wingstop franchise costs, a well as expectations, requirements, train, and more will all be defined in the franchise disclosure document ( FDD ) that you ’ ll receive from the franchisor before you make a commitment to the brand.

One-time costs

initial investing : The initial investment will vary significantly based on your location and the type of restaurant you want to open. The average investment is around $ 390,000, but this can stretch to over $ 775,000. Franchise fee : The Wingstop franchise fee is $ 20,000 per store. There is besides a development fee of $ 10,000 per storehouse. Keep in thinker, you ‘re required to open at least three stores. net worth : Wingstop requires a minimum net worth of $ 1.2 million.

Cash fluidity : fluidity requirements are $ 600,000 minimum ( more if you open more than three stores ). Keep in mind, the above costs are single of kingdom, rent, and mortgage costs. Because Wingstop does about 80 % of their business via takeout, you don ’ t need to look for a lot of space—you can open a memory with a minimum of between 1,200 and 2,000 square feet.

Ongoing fees

As with the huge majority of franchises, franchisees will be responsible for ongoing franchise fees. These include : Royalty fee : The franchise royalty fee is 6 % of your monthly megascopic sales. Marketing fee : The fee for the market and advertising campaigns, which corporate executes, is another 4 %. local advertise and promotional fee : This fee is 1 % as of 2020.

Wingstop franchise financing 

Wingstop does not offer finance directly, but they do have relationships with third-party lenders that can help you finance all or a parcel of the cost of opening your Wingstop franchise. This financing includes capital for inauguration costs, fixtures, real estate, and more. If you ’ re a newcomer to franchise financing, you may want to do your homework and make sure you ’ re getting the best minor occupation loanword terms potential. If you ’ re a veteran, you ’ ll be pleased to hear they have an bonus for veterans, which is $ 15,000 off the $ 20,000 ( per store ) fee. To qualify for the discount, you must own at least 50 % of the franchise and have been honorably discharged. You besides have the option to look into other third-party financing made to help franchisees open their businesses. These loans include equipment finance, term loans, personal loans for business, and more. Keep in mind, if you have good accredit or business history, you ’ ll have a higher chance of securing a commercial enterprise lend. Your fiscal profile will besides help determine how much capital you will receive.

Wingstop franchise pros and cons

There are several pros and cons to opening up a franchise in general, but besides some that are specific to Wingstop. Consider both as you make your decision about opening a Wingstop franchise, and pay close attention to whether the pros outweigh the cons and vice versa—not just in quantity but in importance.

Pros

cost : relative to many other franchises, Wingstop is relatively low price. Their royalty fee is besides on the humble end. territory : Wingstop guarantees some district protection, which shields you from other franchisees opening in your market and threatening your sales. Employees : Since Wingstop does sol a lot of their business on-line, you may not need a big staff at any given time, which is an crucial consideration as you plan your hire strategy.

Cons

hands-on : If you ’ rhenium looking for a franchise that ’ ll let you be offsite, Wingstop does not allow absentee possession. While you may not need to be the daily operator, you will be expected to have a hands-on role. variety : menu options are limited, which, although simple for owners, may limit the appeal to a smaller group of consumers. Fees : The fees for both selling and ad add up to a higher percentage than many other comparable franchises. Developments : If you ’ re concerned in opening multiple stores, there is a three-store minimal, though sometimes more depending on your market.

The bottom line

If opening a Wingstop franchise sounds like the good clientele venture for you, you can submit an application through Wingstop ’ s web site. If you ‘re approved, you ’ ll have the opportunity to attend a Wingstop Discovery Day, which will help you get a sense of whether you ’ d like to take the dunk to own a Wingstop franchise. Make sure you speak with angstrom many current and former Wingstop franchisees as possible during this action, as they ’ ll be able to provide firsthand information about the franchise process and relationship. If you find Wingstop international relations and security network ’ t the best franchise opportunity for you, consider our list of best franchises alternatively. This article primitively appeared on JustBusiness, a auxiliary of NerdWallet .

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Category : Finance

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