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

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

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

Section III – Number of franchised and company-owned Wingstop 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 Wingstop franchise opportunity

Section V – Presentation and analysis of Wingstop’s 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, and lowest annual net sales information for (1) all Wingstop Restaurants (both franchised and affiliate-owned), (2) separately for all franchised Wingstop Restaurants, and (3) separately for all affiliate-owned Wingstop Restaurants, that were open for business in the United States during the 52-week fiscal year period from January 1, 2023, through December 30, 2023

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

Section I – Wingstop Franchise Costs

• Development Fee:  $10,000
• Franchise Fee:  $20,000
• Rent:  Amount Not Specified
• Security Deposits:  $0 to $10,000
• Architectural/Engineering Fees:  $7,300 to $30,000
• Professional Fees:  $2,500 to $7,500
• Leasehold Improvements:  $100,000 to $510,000
• Business and Operating Permits:  $4,500 to $8,500
• Decor Package:  $10,000 to $35,000
• Furniture, Fixtures, Audio/Visual System, Equipment, and Smallwares:  $50,400 to $153,800
• Point-of-Sale, Back Office, Software and Hardware and Related Items:  $11,100 to $23,900
• Signs:  $3,600 to $32,400
• Opening Inventory:  $10,000 to $16,000
• Opening Publicity and Promotions:  $5,000 to $15,000
• Additional Funds – 3 Months:  $25,000 to $40,000
• Total Estimated Wingstop Franchise Costs (excluding real estate purchase and lease costs):  $259,400 to $912,100

Section II – Wingstop’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Franchise Fee:  $20,000
• Royalties:  6% of Gross Sales
• Ad Fund:  5.3% of Gross Sales

Section III – Number of Franchised and Company-Owned Wingstop Outlets

Franchised

2021

• Outlets at the Start of the Year:  1,327
• Outlets at the End of the Year:  1,498
• Net Change:  +171

2022

• Outlets at the Start of the Year:  1,498
• Outlets at the End of the Year:  1,678
• Net Change:  +180

2023

• Outlets at the Start of the Year:  1,678
• Outlets at the End of the Year:  1,877
• Net Change:  +199

Company-Owned

2021

• Outlets at the Start of the Year:  32
• Outlets at the End of the Year:  36
• Net Change:  +4

2022

• Outlets at the Start of the Year:  36
• Outlets at the End of the Year:  43
• Net Change:  +7

2023

• Outlets at the Start of the Year:  43
• Outlets at the End of the Year:  49
• Net Change:  +6

Section IV – News Updates on the Wingstop Franchise

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

• This financial performance representation contains actual, historical average, median, and high/low annual net sales information during a 52-week fiscal period – from January 1, 2023, through December 30, 2023 (the “2023 Measured Period”) – for: (1) all Wingstop Restaurants (both franchised and affiliate-owned), (2) separately for all franchised Wingstop Restaurants, and (3) separately for all affiliate-owned Wingstop Restaurants, that were open for business in the United States during the 2023 Measured Period.

• The net sales information presented below for franchised Restaurants during the 2023 Measured Period was obtained from weekly royalty reports submitted by franchisees to Wingstop and information polled by Wingstop from point-of-sale systems in the Restaurants. Wingstop has not independently audited that information. Net sales information for affiliate-owned Wingstop Restaurants was obtained from Wingstop’s internal records.

• The average for the 2023 Measured Period includes all Restaurants that were open during the entire 2023 Measured Period, even if their ownership changed during that time period.

• Excluded are the results of 202 franchised Restaurants and 4 affiliate-owned Restaurants that opened during the 2023 Measured Period and therefore were not open for operation during the entire 2023 Measured Period, 37 franchised Restaurants and 1 affiliate-owned Restaurant that were temporarily closed for remodeling and repairs for multiple days in a row (32 days on average) during the 2023 Measured Period, and 1 franchised Restaurant and 0 affiliate-owned Restaurant that permanently closed during the 2023 Measured Period.

Franchised and Affiliate-Owned Wingstop Restaurants

• Number of Franchised Restaurants:  1,637
• Number of Affiliate-Owned Restaurants:  44
• Total Number of Restaurants:  1,681
• 2023 Average Annual Net Sales:  $1,827,407
• Number and Percent of Franchised Restaurants Whose Actual Net Sales Exceeded the Average:  680 (42%)
• Number and Percent of Affiliate-Owned Restaurants Whose Actual Net Sales Exceeded the Average:  31 (70%)
• 2023 Median Annual Net Sales:  $1,689,055
• 2023 Highest Annual Net Sales:  $5,021,415
• 2023 Lowest Annual Net Sales:  $442,869

Franchised Wingstop Restaurants

• Number of Franchised Restaurants:  1,637
• 2023 Average Annual Net Sales:  $1,816,486
• Number and Percent of Franchised Restaurants Whose Actual Net Sales Exceeded the Average:  691 (42%)
• 2023 Median Annual Net Sales:  $1,669,009
• 2023 Highest Annual Net Sales:  $5,021,415
• 2023 Lowest Annual Net Sales:  $442,869

Affiliate-Owned Wingstop Restaurants

• Number of Affiliate-Owned Restaurants:  44
• 2021 Average Annual Net Sales:  $2,233,700
• Number and Percent of Affiliate-Owned Restaurants Whose Actual Net Sales Exceeded the Average:  19 (43%)
• 2023 Median Annual Net Sales:  $2,055,500
• 2023 Highest Annual Net Sales:  $4,857,886
• 2023 Lowest Annual Net Sales:  $622,317

• Net sales are defined as gross receipts net of (that is, after deducting amounts for) sales tax, coupons/promotions, and voids.

• Average annual net sales are calculated by dividing total sales during the 2023 Measured Period for all Restaurants in the system that were open for operation during the entire 2023 Measured Period by the number of Restaurants that were open for operation during the entire 2023 Measured Period.

• Median annual net sales represent the middle annual net sales figure during the 2023 Measured Period for all Restaurants in the system that were open for operation during the entire 2023 Measured Period, with an equal number of Restaurants with net sales above and below that figure.

• The franchised Restaurants that were open for operation during the entire 2023 Measured Period and whose average net sales during the 2023 Measured Period are reported above, are substantially similar to the Restaurant franchises Wingstop currently offers.

• The actual average annual net sales numbers reported above for the 2023 Measured Period do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the net sales 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 Wingstop Restaurant. Franchisees or former franchisees, listed in the Franchise Disclosure Document, may be one source of this information.

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

• Chicken wings and other chicken products are the principal food items sold by Wingstop Restaurants. The availability of these products from independent suppliers throughout the United States and their wholesale cost are determined by market factors (including the supply needs of competitive businesses) over which Wingstop has little control. These supply chain issues will impact your operating costs and results during the franchise term.

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