Wingstop has shown massive growth in recent years thanks to franchising. Opening a franchise can be a great investment. However, before opening a Wingstop restaurant, you’ll need a net worth of $1.2 million, half of which should be liquid. Your startup costs can range from about $300,000 to close to $1 million. You will also need to commit to opening at least three restaurants. Show
If you want to spread your entrepreneurial wings by selling chicken wings, you’ll be glad to know that Wingstop has been rapidly expanding in recent years. Franchises are the company’s main source of worldwide growth. There were 390 new Wingstop franchisees from 2019 to 2021. And Wingstop restaurants show no signs of stopping. If you want to jump on Wingstop’s growth, consider opening a Wingstop franchise. But be aware that there are several requirements you must meet, both financially and with your business experience. Keep reading to learn all about Wingstop and what it takes to open a chicken wing franchise. Compare Business LoansCompare rates, terms, and community reviews between multiple lenders. Compare Business Loans What is a Wingstop franchise?Wingstop is the biggest fast-casual chicken-wings-focused restaurant chain on the planet. It prides itself on great flavor and outstanding customer service. The company has been growing for more than 25 years and shows no signs of slowing down. Wingstop operates in 13 countries from Singapore to Mexico to the United Kingdom. History of WingstopAnthony Swad started Wingstop in 1994 in Garland, Texas. It was a humble buffalo-style wings restaurant with many flavors. It quickly grew into a chain and, by 1997, Wingstop began offering franchises. They sold their billionth wing in 2002 and have continued to grow ever since. There are now more than 1,500 Wingstops around the world. The business has moved through a series of owners. In 2003, Gemini Investors acquired Wingstop. In 2010, they sold it to Roark Capital Group. Wingstop finally went public in 2015. What makes Wingstop specialSince 1994, Wingstop has prioritized flavor. “We’re not in the wing business. We’re in the flavor business,” they say. The chicken wing chain achieves a range of tasty flavors via its proprietary recipes. Wingstop has chicken wings to satisfy many palates and preferences. They offer 11 signature highly-seasoned flavors that range from no heat — like “Hawaiian” — to all the heat — like “Atomic.” A heat scale helps to identify the heat level of all the flavor options in between. Customers can also choose between wet or dry and bone-in or boneless wings. Outside of the flavor department, Wingstop is involved in philanthropic efforts. The company gives back by raising money to support youth and their passions. Furthermore, the Wingstop Team Member Foundation offers financial support to Wingstop team members going through hardships. How to open a Wingstop franchiseNot just anyone can open a Wingstop franchise. The company has several financial and experiential requirements that prospective franchise owners (called “Wingstop Brand Partners”) must meet. Wingstop franchise owner qualificationsTo be considered for approval as a Wingstop Brand Partner, you must meet the following qualifications:
How much is a Wingstop franchise?Wingstop costs are categorically less than the costs of opening another fast-food franchise like KFC. You’ll still need a hefty amount of capital to get your franchise up and running. Wingstop franchise costEstimated costs for opening a Wingstop franchise in 2022 range from $315,310 to $948,080. This estimated initial investment includes all startup costs necessary to make the restaurant fully operational. Included in this estimate are a $20,000 initial franchise fee and a $10,000 development fee. To open a Wingstop franchise, you must have a minimum net worth of $1.2 million and at least $600,000 of liquid capital. Wingstop notes that this requirement may be higher depending on the location and other factors. Cost breakdownHere is the breakdown of how Wingstop estimates the costs of opening a franchise. *Costs exclude real estate purchase and lease costs. Published in the May 17, 2022 Wingstop franchise disclosure document. Pro TipKeep in mind that you must commit to opening a minimum of three locations. This means three times that initial investment over time. Wingstop doesn’t indicate a time requirement for opening consecutive locations. Ideally, you could funnel profits from the first location into the next. Recurring costs of a Wingstop franchiseThe Wingstop franchise owner is obligated to pay ongoing fees. During the restaurant’s first full year of operation, Wingstop franchise owners must pay a royalty fee equaling 2% of gross sales. In the franchise’s second full year of operation the royalty fee raises to 4% of gross sales. From the first day of the restaurant’s third operational year and beyond, the royalty fee is 6% of gross sales. Additionally, Wingstop charges an ad fee of 5% of gross sales to pay for local advertising and promotions. Finally, owners are responsible for ongoing technology fees of up to $100 per month. Process for opening a Wingstop franchiseIf you satisfy the above qualifications, then you can start the process of opening a Wingstop franchise. The process looks something like this:
Financing a Wingstop franchiseOpening a Wingstop comes with many costs. Wingstop doesn’t directly offer financing for its Wingstop franchisees. It does partner with third-party lenders who can help finance the Wingstop franchise costs. You will likely need to learn how to get approved for a business loan. It may be difficult to get a business loan with bad credit, but it’s possible. Check out these comprehensive business loan reviews from SuperMoney to find the best one for you. Pro TipWhen financing a new business, loans often come with a collateral requirement. This can be daunting, but there are a few ways to get a business loan without collateral. The good news is starting a franchise may allow you to get a loan without collateral. Wingstop financial metricsA franchise is a large investment that should be considered carefully. If you want to open a Wingstop franchise, you should understand how the business performs to make sure it’s a good investment. Wingstop average salesIn 2021, the average Wingstop restaurant made $1,485,793 in sales. This is about a 15% increase from 2020 sales. The company has been steadily growing and is positioned to continue doing so. Wingstop profit marginsWingstop franchises make an average 15% profit margin. Factors such as location, competition, and quality of service can affect this profit margin. How much does a Wingstop franchise owner make?If a Wingstop performs at the average, bringing in about $1.5 million in revenue with a 15% profit margin, the franchise owner could make around $220,000 per year. The business continues to be very profitable for a Wingstop franchisee. Alternative franchise opportunitiesOpening a franchise is a big decision. If you aren’t set on opening a Wingstop, you might consider some of these other similar franchise opportunities:
FAQHow much does a Wingstop owner make a year?Of course, it depends on the success of the franchise, but with a 15% average profit margin, a Wingstop franchise owner could make anywhere from $150,000 to $300,000 per year. What does it take to own a Wingstop franchise?It takes extensive restaurant experience, at least $600,000 of liquid capital, and a $30,000 franchise fee to start a Wingstop franchise. Estimated startup costs for opening a Wingstop franchise in 2022 range from $315,310 to $948,080. From there, it takes hard work, dedication, and investment to make the franchise successful. How much does a franchise owner make Wingstop?2021 Wingstop Median Franchise Sales: $1,485,793
Based on the median sales for Wingstop's franchise locations, at an average of a 15% profit margin, it will take around 5.5 years to recoup your investment.
Who owns the most Wingstop?Ross owns nearly 30 Wingstop franchises across the U.S., according to CBS46.com.
Does Rick Ross own Wingstop?A Mississippi Wingstop franchise group owned by rapper Rick Ross' family has paid $114,427 in back wages and penalties for labor law violations, the U.S. Labor Department says. Boss Wings Enterprises LLC, the Southhaven, Miss.
What are the royalty fees associated with Wingstop?$948,080. |