Wingstop is a chain of restaurants located in the United States with a unique air-themed environment. The restaurant’s speciality is chicken wings with various flavors that are served with dips drinks, and salads. In this post, we are going to see what is a Wingstop franchise cost and how you can start one? Its investment and profit margin details.

Entrepreneurs from all over the world that own over 1,000 Wingstop restaurants have previously identified potential Wingstop franchise opportunities. If you’re keen to join the company and want to know how to get an Wingstop franchise on this page.

Wingstop franchise requirements, such as information on investments and the highest and low franchise fees, can be located here. The Wingstop franchise comes with a profit-to-cost ratio that is acceptable.

Wingstop has around 1,200 restaurants across their United States and international locations. Over 980 out of the more than 1,300 locations around the world are franchises. Wingstop was established in 1994. They began offering franchise options in 1997.

The customers love Wingstop’s unique flavors that are made with exclusive ingredients that are only available only at Wingstop. Wingstop is committed to growing their takeaway service along with their brick-and mortar establishments, which is why some of their restaurants are smaller than your typical fast-food restaurants.

Wingstop franchise Cost

Certain Wingstop locations also have licenses to sell wine and beer as well as an extensive menu of chicken options and side dishes.

Wingstop states that franchises enjoy large profits per square foot in contrast to other parts of the industry and that an average franchise earning $1.25 million per year.

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About Wingstop franchise

Additionally, in terms the number of restaurants that are chain, Wingstop is on the rising. Between 2015 and 2019 the fast-food chain has grown in size by 31.4 percent, which resulted the total sales to $53 million.

The year before, they recorded over $20 million. A large part of this increase could be due to the company’s growth in online sales that grew by 39% over the course of last year.

This is particularly important to keep in mind as increasing customers prefer shopping online. Clearly, Wingstop already has an online order process in place which means your sales will not suffer as you work to set one up.

In the past three years, the fast-food chain has grown significantly by 38 percent increase in the number of stores from 2016 through 2019.

This expansion isn’t restricted to established markets. There are numerous other locations in which you can grow the reach of your Wingstop brand, meaning there’s a wide range of options.

Wingstop is probably looking to expand into an area close to you, which offers an opportunity for young, prospective franchisees to establish their businesses.

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A brief overview of the training program

at minimum, two individuals–franchisees or their authorized principal and a general manager –must be able to finish the training at the level that is satisfactory to the franchisee and both of them must be able to work full-time at the restaurant.

The training course lasts for 25 days, with at minimum one day off per week, and must be completed within the timeframe. In varying amounts the training hours are divided between classroom and on-the job training.

If it is the franchisee’s first restaurant, two restaurant trainers will be on site for at least 14 days on the premises. Franchisees and supervisors could be required to attend additional training or pass the recertification test.

All franchisees and their supervisors could be required to attend additional training sessions or take an examination to renew their license at the discretion of the franchisor.

Be aware that you can only select an multi-unit development that has at least three units when you are looking at Wingstop franchises.

They also require previous experience in managing and developing multi-unit restaurant chains as well as a strong preference for prior franchise ownership. Additionally, Wingstop franchise agreements are for a minimum period of 10 years.

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Support from wingstop franchise

The assistance you’ll receive by the franchisee is just one of the many advantages of franchising. This could be particularly appealing to those who haven’t owned a business , or worked in the restaurant industry.

Wingstop will help you locate real estate, start companies, and oversee construction projects.

Franchise Agreement provides protection against competition in the trading Region Around the Restaurant: The Franchise Agreement gives franchisees competitive protection within the trade area surrounding the restaurant.

The franchisor is not permitted to offer a franchise or open a new location an additional restaurant (as as stated within the Franchise Agreement) whose physical site is within the area of trade.

The restaurant’s trade zone can be defined by the space within a circle, whose center is located at the restaurant’s front door with a radius that extends from the center of the circle with the exception of high-density regions.

The radius of a franchisee’s establishment is determined by factors like population density as well as travel time and other factors that are comparable to the region of the market. There aren’t any minimum or maximum radius specifications.

However, the franchisor should not anticipate that the radius would ever be greater than 3 miles distance from the establishment, or smaller than 2 blocks in the event that the restaurant is situated in the downtown area.

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Wingstop franchise cost

What is Wingstop franchise cost to start franchise? Keep in mind that the Wingstop franchise cost will vary based on your location as well as any updates provided by the company when we examine the cost to open a Wingstop franchise.

The document describing the franchise (FDD) you’ll receive from the franchisor prior making a an agreement with the brand will contain the Wingstop franchise costs, along with expectations, guidelines for training, etc.

one time cost

Initial investment Based on the area and the type of restaurant you’d like to start, your first investment can be very different. The typical investment is $390,000 however, it could reach up to $750,000.

  • Wingstop must have an estimated net value of $1.2 million in order to be considered.
  • The minimum requirement for liquidity is of $600,000 in cash required (more when you have multiple stores).
  • Wingstop has a franchise fee of $20,000 fee per location. Also, there is a $10,000 development cost per store. Be aware that you need to have at least three locations open.

Be aware that the above expenses don’t include leases, land or mortgage fees. Since takeaway sales account for about 80 percent of the revenue generated by Wingstop so you don’t require lots of space.

You’ll be able operate an establishment in as little as 1200 to two hundred square feet.

franchise fees

Wingstop franchise cost – Franchisees will be responsible for the recurring payments of franchises in the same way as the vast majority of franchises. Some examples:

Royalty cost -The royalty charge for franchises is the equivalent of 6% of the monthly gross sales.

Marketing fee- An additional fee of 4% is imposed for marketing and advertising activities that the business engages in.

In 2020 the local advertising and promotion cost will be 1%..


The location should be the most crucial aspect to the success of a business. Wingstop provides protection for territorial areas which means you can almost ensure that there are no competitors within the specific square mile area.

But, since there are a lot of establishments and plazas in the present and there are so many plazas and businesses, you might not be able to secure the assurance you need because you might encounter competition that could affect your earnings.

Although Wingstop provides protection for territorial areas however, other fast-food wing restaurants within the vicinity could threaten your company.

Also, keep in mind that specific places may have better access to services than Wingstop. Wingstop is primarily a take-and-go business, however you can even dine at their restaurant that is themed around aviation.

Some establishments, on contrary, offer drive-thrus which offer customers a the speediest and most convenient option without having to leave their vehicles.

This might prevent people from going to Wingstop as it doesn’t offer the convenience and convenience offered by drive-thrus.

The employees has a huge influence on the amount of money your company earns. Salespeople’s performance will be poor if they’re not adequately trained or motivated to achieve.

Even though Wingstop offers staff training every location will have different kinds of employees with different backgrounds.

Finding motivated individuals willing to make a commitment to the establishment industry as franchisees can be difficult however it’s the only way to attain high performance and profits margins.

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Wingstop franchise pros and cons

There are many advantages and disadvantages to starting the restaurant franchise, however, certain features are unique to this specific brand.

Wingstop offers some protection for territories that protects your business from the risk of franchisees coming into your market , and thereby reducing your earnings.

Additionally, since Wingstop is able to conduct a significant portion of its operations online, you could require fewer employees to ensure your business is running.

The menu at Wingstop is slender and limited, which could make it less appealing to a larger range of customers, while also making it easier for the owners.

When compared to other franchises in the market, the marketing and marketing costs are an increased percentage. Additionally, the requirement of three stores and the desire for previous multi-unit ownership could be an incentive to unexperienced restaurant owners or investors who are seeking a simpler commitment.

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Restrictions and Obligations

If franchisees are private individuals and not a business, the franchisor will strongly suggest (but is not required) that they manage the restaurant.

If franchisees are not keen to run the restaurant on their own and want to choose a general manager that is responsible for the day-to-day operations as well as an assistant manager to assist in the management of the restaurant.

Franchisees have to select the “designated principal,” who is the owner who oversees and manages the operations and administration of the restaurant in the event that they are an organization that is a corporation.

Franchisees must serve chicken wings fried using the unique sauces and spices. They cannot use other seasonings or sauces, as per the Franchise Agreement.

Franchisees must also provide the entire range of food and beverages from the standard menu offered by the franchisor within the amount stipulated by the Franchise Agreement.

The term of the agreement and renewal The original term of the franchise is 10 years beginning with either the date of opening for the restaurant or the date of the restaurant’s opening or the date of opening, whichever is first.

Current Franchise Agreement permits franchisees to extend their franchise by two additional 10 year terms, provided they are fully in conformity.

The funding for an Wingstop franchise | Wingstop franchise cost

Wingstop doesn’t offer the financing directly, however, they have agreements with third-party lenders which can help you finance any or all of the costs associated with operating the Wingstop franchise.

The financing covers a broad array of expenses, such as expenses for launching, furnishings as well as real estate and many more. If you’re new to franchising financing, you should do your homework to ensure that you’re getting the best small business terms for loans.

If you’re a vet, you’ll be pleased to know that they offer a 15% discount off the $20,000 (per shop) fee for veterans. You must have at least 50 percent of the franchise, and have been discharged on an honorable basis to qualify to receive the discount.

There are different kinds of third-party financing that are designed to aid franchisees in beginning their business. Equipment finance, term loans personal loans for business as well as other types of loans are offered.

Remember that you’ll have a greater chances of getting a business loan if you’ve got strong credit or a good business background. Your financial situation will be a factor in determining the amount you’ll be able to borrow.

Why take wingstop franchise?

Wingstop’s menu of fried chicken comes with a wide range of flavors that is a major advantage. There aren’t any particular flavors you’ll find in every fried chicken establishment However, they’re fantastic flavors that be distinctive and attract attention.

Wingstop franchise cost could be very much for someone or can be very reasonable for someone. its depend on you. but here is the reasons of why to take wingstop franchise?

There are also seasonal flavors and menu items that change according to the season to keep up with most recent trends. This helps them keep a the variety of their menu while keeping their customers engaged and coming back.

With Wingstop you are able to manage your franchise through the appointment of a principal and general manager who will oversee and run the business while enjoying the advantages of having ownership from far away!

Wingstop also conducts a large part of their business online. Customers can place orders through their website, and then take them to the store.

Since you’ll be focusing on accepting online orders as well as preparing them and waiting for customers to to pick their food so you don’t need staff on site.

As more companies are moving on to platforms that are online, having a advanced ordering system allows customers to receive their food quicker. It is crucial to keep in mind since Wingstop is not an in-store drive-through.

Consider following challenges in business

Every franchise has its own issues or else, there wouldn’t exist a franchise all would love to.

One of the difficulties will be that both directors must complete a total of 25 hours of Wingstop training since they’ll be working full time at the company. While this could be an excellent learning experience for certain people, it could be an issue for those who have more years of experience.

The royalty rate for Wingstop is in the upper part of the spectrum, with 6percent. The typical franchise fees range between 4% and 6 percent, which means it’s certainly on the high part of the scale.

It’s also a substantial commitment, with an cost of $700,000 as well as the franchise fee of $20,000 required.

Additionally, there is an intense rivalry between Wingstop. Popeyes, KFC, and Churches are only a few of the other eateries that serve chicken. The chicken they fry isn’t very seasoned, which is why they focus on the flavor of chicken that has been fried.

They also serve it with side dishes like coleslaw and mashed potatoes. Since Wingstop only serves chicken and other meats, this could be a limitation for some customers, thus limiting the number of customers.

There are other restaurants that serve fried chicken like Buffalo Wild Wings, and Korean restaurant chains that fry chicken, like Bonchon, which offer seasoned fried chicken that make it difficult to distinguish yourself.

In the end, the increasing cost of chicken wings is creating anxiety. Chicken wings, which previously be $1.50 for a pound today are $3.00 and up. If food prices continue to increase and the cost increases, it is going to be passed on to consumers.

The higher prices could cause customers to search for lower-cost fast-food alternatives.

What is the typical earnings of a franchisee of Wingstop?

It’s been a while since you’ve spent 600,000 dollars on an Wingstop franchise and you’re contemplating how much money you’ll earn in the next few months?

Based on the corporate filings of the company and an examination of the Wingstop Franchise Disclosure Document (FDD) We estimate that the average income for the Wingstop site is around $1,100,000.

Average EBITDA is around $135,000 in this instance. This means that the typical franchisee earns $135,000 for each location.

It is important to examine the expected return and compare it with other options for investment to determine if this is an investment worth your time.

It’s an average return of 35 percent for investments on an investment of about $380,000 (business presentations, and it’s not the middle in FDD).

If a return of 35 percent is greater than what you will find elsewhere then an investment in a Wingstop franchise may be an investment worth considering for you.

Net Worth Requirement for Wingstop

You might be able to find the money to start the new Wingstop however, Wingstop will also take a look at the financial condition of your business.

The current threshold for net worth to be an Wingstop franchisee is $50000 of liquid assets, and $1,200,000 net worth. Three stores minimum is required to develop.

In order to establish a food business off on the right foot, it requires an enormous amount of effort. But over the course of a couple of years, your efforts could pay off in a big way.

The popularity of Wingstop has been growing over the past few years, and hasn’t stopped despite the recent famine. From 2016 to the year 2019 the number of stores has increased by 30 percent.

If the franchise earns $200,000 per year, it’s sure to be noticed by veteran business owners.

If you’re a former employee who is interested in working at Wingstop it is a place that recognizes and appreciates your work. In the beginning, franchise costs for each location is reduced by $15,000 for veterans.

For veterans this is an incredible opportunity. The official website for the company has additional information about the steps for becoming an Wingstop franchisee.