Franchise Deep Dive: Wingstop Franchise Costs, Fees, Profit and Data

LAST UPDATED: 1/2024

FRANCHISE WEBSITE: https://www.wingstop.com/own-a-wingstop 

NUMBER OF LOCATIONS: 2,000+

REPORTED COST TO GET IN: $315,310–$948,080

Fast-casual chicken restaurant Wingstop began as a small buffalo-style chicken wing restaurant in Garland, Texas. Today, the fan-favorite chain has grown to over 1,500 restaurants around the world. 

After being founded in 1994, Wingstop first began offering franchising opportunities in 1997. And by 2002, Wingstop had already served the world one billion wings. 

Wingstop is famously known for its variety of sauce flavors, which are unique to the brand and made with proprietary recipes. The brand has also expanded its takeout business in recent years and has developed a larger amount of smaller storefronts and ghost kitchens than the average fast-food business.  

How Many Wingstop Locations Are There?

Wingstop first opened its doors in 1994 in Garland, Texas. Quickly growing to become a fan favorite, the brand began offering franchise opportunities just three years later in 1997. By 2002, Wingstop had already served the world one billion wings.Today, there are over 2,000 locations across the globe. 

In 2022, Wingstop raised its growth expectations for the next few years. The brand’s goal for nationwide locations was bumped to 4,000 from 3,000, while internationally, the brand is expecting 3,000 units. The restaurant believes it has room for 7,000 stores globally in the coming years. 

As of September 30, 2023, there were 2,099 Wingstop restaurants system-wide. This included 1,837 restaurants in the United States, of which 1,791 were franchised restaurants and 46 were company-owned, and 262 franchised restaurants were in international markets. During the fiscal third quarter 2023, there were 53 net system-wide Wingstop restaurant openings.

In 2023, Wingstop CEO Michael Skipworth discussed the restaurant chain’s growth on CNBC,  saying much of it comes from existing franchisees who are reinvesting in the business.

“If we look back over the restaurants we’ve opened over the last year, over 90% of those came from our existing franchisees reinvesting, which I think just speaks to the strength of the model,” Skipworth said.

What Is the Business Model?

When franchising with Wingstop, one thing to keep in mind is that owners can only choose a multi-store development with a minimum of three units. 

Additionally, the brand requires previous multi-unit restaurant management and development experience, with a strong preference for past franchise ownership. Specifically, multi-unit restaurant operations experience should include:

• Proven track record in operating a multi-unit restaurant portfolio
• Successful multi-unit restaurant ownership experience
• Liquid Assets are defined as cash or any asset that could be converted to cash within 10 business days

Franchise agreements with Wingstop also last for a term of at least 10 years.

How Much Can Wingstop Franchise Owners Make?

On Wingstop’s franchise development website, the brand notes that it has an average unit volume of $1.59 million, with some of the highest sales per square foot in the industry. This figure reflects the average annual net sales for all Wingstop restaurants (28 corporate and 1,144 franchised) in the system that were open during the measured period from December 27, 2020 through December 25, 2021. 

How Much Does It Cost To Open a Wingstop? 

The total cost to open a Wingstop is estimated to be around $315,310 to $948,080. Costs to open each Wingstop location include: 

• Franchise fee: $20,000 
• Development fee: $10,000 
• Security Deposits: up to $10,000
• Architect and Engineering Fees: $5,800–$35,500
• Professional Fees: $2,500–$7,500
• Leasehold Improvements: $155,000–$570,000
• Business Operating Permits: $4,500–$8,500
• Decor Package: $6,300-$32,480
• Furniture, Fixtures, Audio/Visual System, Equipment and Smallwares: $55,850–$138,100
• Point of Sale Register, Back of Office, Hardware and Software: $12,000–$13,000
• Signs: $3,360–$32,0000
• Opening Inventory: $10,000–$16,000
• Opening Publicity and Promotions: $5,000–$15,000
• Additional Funds - 3 Months: $25,000–$40,000

Ongoing fees include: 

• Royalty fee: 6% of monthly gross sales
• Marketing fee: 4%

Wingstop also requires a minimum net worth of $1.2 million, and cash liquidity requirements are $600,000 minimum (more if opening more than three stores).

What Is the Franchise Fee for Wingstop?

The franchise fee for Wingstop is $20,000 per store. 

Who Is the Leadership of Wingstop?

• Michael J. Skipworth - President and CEO
• Marisa J. Carona - Senior Vice President, Chief US Franchise Operations Officer
• Alex Kaleida - Senior Vice President, CFO
• Gerry McGrath - Senior Vice President, General Counsel and Secretary
• Donnie S. Upshaw - Senior Vice President, Corporate Restaurants and Chief People Officer
• Anne Fischer - Senior Vice President, Chief Growth Officer
• Raj Kapoor - Senior Vice President, President Of International
• Chris Fallon - Senior Vice President, Chief Information Officer

What Helpful Articles Can I Read To Learn More?

• Opening a Wingstop Franchise: Information and Costs 
• Wingstop's Ambitious Growth Strategy Takes Another Leap 
• FDD Talk: How Much Does a Wingstop Franchise Make 
• Wingstop Is the Latest Franchise To Suffer From Soaring Food Costs
• Wingstop CEO says majority of company’s growth comes from existing franchisees reinvesting

Want to learn more about franchise opportunities on 1851, be sure to visit our Power Rankings to read more on brands making moves.

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