In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Buffalo Wild Wings franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Buffalo Wild Wings franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Buffalo Wild Wings outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Buffalo Wild Wings franchise opportunity

Section V – Presentation and analysis of Buffalo Wild Wings’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, lowest, top 3rd average, middle 3rd average, and bottom 3rd average unit volume for the 645 company-owned, 523 franchised, and all 1,168 company-owned and franchised Buffalo Wild Wings sports bars that operated during the franchisor’s entire 2023 fiscal year from January 2, 2023 through December 31, 2023 (separately stated)

• 2022 and 2023 average unit volume, and percent change, for the company-owned, franchised, and all company-owned and franchised Buffalo Wild Wings sports bars that operated during the franchisor’s entire 2022 and 2023 fiscal years (separately stated)

Section VI – Key ratios, comparables, computations, and analyses for the Buffalo Wild Wings franchise opportunity (exclusive content for Platinum subscribers)

Section I – Buffalo Wild Wings Franchise Costs

• Fees Related to Site Approval:  $1,200 to $53,800
• Initial Franchise Fee:  $12,500 to $25,000
• Reimbursement of Expenses and Administrative Fee for Onsite Training:  $0 to $80,000
• Architecture Fees (based upon utilization of national firm):  $100,000 to $160,000
• Construction and Leasehold Improvements:  $1,430,000 to $2,100,000
• Furniture, Fixtures, Equipment, and Other Fixed Assets:  $775,000 to $925,000
• Audio/Visual Equipment:  $275,000 to $425,000
• Computer POS System/Kitchen Display Unit:  $28,245 to $50,520
• Office Equipment and Supplies:  $6,000 to $13,000
• Sports Memorabilia:  $12,500 to $26,500
• Signage and Graphics (excluding pylon or monument signage):  $43,000 to $100,000
• Training Expenses:  $8,000 to $12,000
• Initial Inventory:  $15,000 to $19,000
• Insurance:  $14,400 to $48,000
• Additional Funds for 3 Months:  $100,000 to $150,000
• Rent:  $7,500 to $40,000
• Lease and Utility Security Deposits:  $10,000 to $20,000
• Grand Opening Advertising:  $12,500
• Liquor License:  $5,000 to $500,000
• Professional Fees:  $20,000 to $70,000
• Total Estimated Buffalo Wild Wings Franchise Costs:  $2,875,845 to $4,830,320

Section II – Buffalo Wild Wings’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $12,500 to $25,000
• Royalty Fee:  5% of Gross Sales, subject to applicable incentive program
• Advertising Fee:  3.75% to 4% of Gross Sales and 1.875% of Gross Sales for Non-Traditional Locations
• Co-op or Local Marketing Group (LMG) Contribution:  at least ½% of Gross Sales

Section III – Number of Franchised and Company-Owned Buffalo Wild Wings Outlets

Franchised

2021

• Outlets at the Start of the Year:  530
• Outlets at the End of the Year:  534
• Net Change:  +4

2022

• Outlets at the Start of the Year:  534
• Outlets at the End of the Year:  530
• Net Change:  -4

2023

• Outlets at the Start of the Year:  530
• Outlets at the End of the Year:  533
• Net Change:  +3

Company-Owned

2021

• Outlets at the Start of the Year:  673
• Outlets at the End of the Year:  662
• Net Change:  -11

2022

• Outlets at the Start of the Year:  662
• Outlets at the End of the Year:  659
• Net Change:  -3

2023

• Outlets at the Start of the Year:  659
• Outlets at the End of the Year:  652
• Net Change:  -7

Section IV – News Updates on the Buffalo Wild Wings Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Buffalo Wild Wings Franchise (Item 19, 2024 FDD)

• This Item 19 includes financial results from Buffalo Wild Wings’ “2023 Fiscal Year,” which is the period from January 2, 2023 through December 31, 2023.

• There were 1,185 Buffalo Wild Wings Sports Bars operating as of the end of Buffalo Wild Wings’ 2023 Fiscal Year.

• Buffalo Wild Wings excluded from these financial performance representations (a) 12 sports bars that first opened for business during its 2023 Fiscal Year and did not operate for the full year, (b) 3 alternate format sports bars that its affiliates operate because they are not typical of the experience of other Buffalo Wild Wings Sports Bars, and (c) 2 sports bars that temporarily closed for significant periods during its 2023 Fiscal Year.

• Buffalo Wild Wings calls the remaining 1,168 Buffalo Wild Wings Sports Bars the “2023 Sports Bars.” Buffalo Wild Wings’ affiliates operated 645 of these sports bars and franchisees operated the other 523.

• Also excluded from the group of 2023 Sports Bars are 10 company-owned sports bars and 6 franchised sports bars that closed during the 2023 Fiscal Year. All of those sports bars had operated for more than 12 months before they closed.

• This financial performance representation discloses the average annual Gross Sales, also called Average Unit Volume or “AUV,” during the 2023 Fiscal Year for the 2023 Sports Bars.

• Buffalo Wild Wings also discloses the AUVs during the 2023 Fiscal Year for those 2023 Sports Bars in the top third, middle third, and bottom third of AUVs for all 2023 Sports Bars.

Part 1 – 2023 Average, Median, Highest, and Lowest Unit Volume

Company-Owned Sports Bars

• Number of Sports Bars:  645
• Average Unit Volume:  $3,251,557
• Median Unit Volume:  $3,122,357
• Highest Unit Volume:  $6,860,854
• Lowest Unit Volume:  $901,038
• Number and Percentage Above Average:  288 / 44.7%
• Top 3rd Average Unit Volume:  $4,244,802
• Middle 3rd Average Unit Volume:  $3,149,546
• Bottom 3rd Average Unit Volume:  $2,360,324

Franchised Sports Bars

• Number of Sports Bars:  523
• Average Unit Volume:  $3,455,211
• Median Unit Volume:  $3,324,905
• Highest Unit Volume:  $8,907,820
• Lowest Unit Volume:  $1,258,636
• Number and Percentage Above Average:  231 / 44.2%
• Top 3rd Average Unit Volume:  $4,674,284
• Middle 3rd Average Unit Volume:  $3,326,377
• Bottom 3rd Average Unit Volume:  $2,357,965

All 2023 Sports Bars

• Number of Sports Bars:  1,168
• Average Unit Volume:  $3,342,748
• Median Unit Volume:  $3,224,467
• Highest Unit Volume:  $8,907,820
• Lowest Unit Volume:  $901,038
• Number and Percentage Above Average:  521 / 44.6%
• Top 3rd Average Unit Volume:  $4,447,260
• Middle 3rd Average Unit Volume:  $3,219,087
• Bottom 3rd Average Unit Volume:  $2,359,058

Part 2 – Comparison of 2022-2023 Fiscal Years

• The following table shows the year-over-year increases or decreases (as applicable) for the annual AUVs of the 2022 Sports Bars and the 2023 Sports Bars for the 2023 Fiscal Year.

Company-Owned Sports Bars

• 2022 Average Unit Volume:  $3,210,079
• 2023 Average Unit Volume:  $3,251,557
• % Change 2023 Fiscal Year vs. 2022 Fiscal Year:  1.3%

Franchised Sports Bars

• 2022 Average Unit Volume:  $3,391,668
• 2023 Average Unit Volume:  $3,455,211
• % Change 2023 Fiscal Year vs. 2022 Fiscal Year:  1.9%

All Sports Bars

• 2022 Average Unit Volume:  $3,290,733
• 2023 Average Unit Volume:  $3,342,748
• % Change 2023 Fiscal Year vs. 2022 Fiscal Year:  1.6%

• The 2023 Sports Bars range in size from 3,900 to 8,000 square feet, with an average of 6,000 square feet, although there are some atypical sports bars whose size fall outside this range. The 2023 Sports Bars had operated for an average of 12.5 years as of the end of the 2023 Fiscal Year.

• The 2022 Sports Bars range in size from 3,900 to 8,000 square feet, with an average of 6,000 square feet, although there are some atypical sports bars whose size fall outside this range. The 2022 Sports Bars had operated for an average of 11.6 years as of the end of the 2022 Fiscal Year.

• All of these sports bars offer essentially the same products and services, face the same kinds of competitive challenges, and receive the same level of support from Buffalo Wild Wings that it expects new franchisees will experience.

• These sorts of bars are located in various markets across the United States.

• The term “Gross Sales” has the same meaning here as it does in Item 6, and includes the total revenues and receipts from the sale of all products, services, and merchandise sold in or in relation to the Buffalo Wild Wings Sports Bar whether under any of the Trademarks or otherwise, including any cover charges or fees, fees or charges for any vending or similar activities or other equipment in the Buffalo Wild Wings Sports Bar or on its premises, fees or charges for any catering and other off-site activities and events, all license and use fees, and implied or imputed Gross Sales from any business interruption insurance. However, Gross Sales excludes sales taxes, promotions, voids, and discounts.

• Buffalo Wild Wings calculated the figures in the table above using information that its affiliates and franchisees provided.

• Prospective franchisees and sellers of franchises should be advised that no certified public accountant has audited these figures or expressed his or her opinion concerning their contents or form.

• This financial performance representation does not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the AUV figures to obtain your net income or profit.

• You should conduct an independent investigation of the costs and expenses you will incur in operating your Buffalo Wild Wings Sports Bar. Franchisees or former franchisees, listed in the disclosure document, may be one source of this information.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Section VI – Buffalo Wild Wings Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️