FDD Talk: Wingstop Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review)
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 2022 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 2022 FDD
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Section III – Number of franchised and company-owned Wingstop outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 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 2022 FDD, including information on the:
- 2021 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 December 27, 2020, through December 25, 2021
Section VI – Key ratios, comparables, computations, and analyses for the Wingstop franchise opportunity (exclusive content for Platinum subscribers)
Section I – Wingstop Franchise Costs
- Wingstop franchise costs, based on Item 7 of the company’s 2022 FDD:
- Development Fee: $10,000
- Franchise Fee: $20,000
- Rent: Amount Not Specified
- Security Deposits: $0 to $10,000
- Architectural/Engineering Fees: $5,800 to $35,500
- Professional Fees: $2,500 to $7,500
- Leasehold Improvements: $155,000 to $570,000
- Business and Operating Permits: $4,500 to $8,500
- Decor Package: $6,300 to $32,480
- Furniture, Fixtures, Audio/Visual System, Equipment, and Smallwares: $55,850 to $138,100
- Point-of-Sale, Back Office, Kitchen Display Software and Hardware, and Related Items: $12,000 to $13,000
- Signs: $3,360 to $32,000
- 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): $315,310 to $948,080
Section II – Wingstop’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Wingstop’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:
- Franchise Fee: $20,000
- Royalties: 6% of Gross Sales
- Ad Fund: 5% of Gross Sales
Section III – Number of Franchised and Company-Owned Wingstop Outlets
Franchised
2019
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- Outlets at the Start of the Year: 276
- Outlets at the End of the Year: 318
- Net Change: +42
2020
- Outlets at the Start of the Year: 318
- Outlets at the End of the Year: 362
- Net Change: +44
2021
- Outlets at the Start of the Year: 362
- Outlets at the End of the Year: 408
- Net Change: +46
Company-Owned
2019
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 13
- Net Change: +7
2020
- Outlets at the Start of the Year: 13
- Outlets at the End of the Year: 14
- Net Change: +1
2021
- Outlets at the Start of the Year: 14
- Outlets at the End of the Year: 16
- Net Change: +2
Section IV – News Updates on the Wingstop Franchise
- Wingstop Inc. Reports Fiscal Third Quarter Financial Results
- Wingstop Inc. Reports Fiscal Second Quarter Financial Results
- Wingstop Names Little Caesar’s Alum SVP of US Development
- Wingstop Signs Agreement for Development Rights for South Korea
- Wingstop’s Chicken Sandwich Returns to Menu
- Wingstop Ranks No. 16 on Entrepreneur’s 2022 Franchise 500 List
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Wingstop Franchise (Item 19, 2022 FDD)
- This financial performance representation contains actual, historical average, median, and high/low annual net sales information during a 52-week fiscal period – from December 27, 2020, through December 25, 2021 (the “2021 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 52-week fiscal year referenced.
- Information for the 52-week fiscal period from December 27, 2020, through December 25, 2021, is presented below as the “2021 Measured Period”.
- The net sales information for franchised Restaurants presented below 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 the affiliate’s internal records.
- The average for the 2021 Measured Period includes all Restaurants that were open during the entire 2021 Measured Period, even if their ownership changed during that time period.
- Excluded are the results of 169 franchised Restaurants and 7 affiliate-owned Restaurants that opened during the 2021 Measured Period and therefore were not open for operation during the entire 2021 Measured Period, 184 franchised Restaurants and 1 affiliate-owned Restaurant that were temporarily closed for multiple days in a row during the 2021 Measured Period, and 2 franchised Restaurants that permanently closed during the 2021 Measured Period.
Franchised and Affiliate-Owned Wingstop Restaurants
- Number of Franchised Restaurants: 1,144
- Number of Affiliate-Owned Restaurants: 28
- Total Number of Restaurants: 1,172
- 2021 Average Annual Net Sales: $1,592,657
- Number and Percent of Franchised Restaurants Whose Actual Net Sales Exceeded the Average: 471 (42%)
- Number and Percent of Affiliate-Owned Restaurants Whose Actual Net Sales Exceeded the Average: 23 (82%)
- 2021 Median Annual Net Sales: $1,485,793
- 2021 Highest Annual Net Sales: $4,693,395
- 2021 Lowest Annual Net Sales: $436,801
Franchised Wingstop Restaurants
- Number of Franchised Restaurants: 1,144
- 2021 Average Annual Net Sales: $1,576,859
- Number and Percent of Franchised Restaurants Whose Actual Net Sales Exceeded the Average: 491 (43%)
- 2021 Median Annual Net Sales: $1,460,459
- 2021 Highest Annual Net Sales: $4,693,395
- 2021 Lowest Annual Net Sales: $436,802
Affiliate-Owned Wingstop Restaurants
- Number of Affiliate-Owned Restaurants: 28
- 2021 Average Annual Net Sales: $2,238,134
- Number and Percent of Affiliate-Owned Restaurants Whose Actual Net Sales Exceeded the Average: 15 (54%)
- 2021 Median Annual Net Sales: $2,261,765
- 2021 Highest Annual Net Sales: $3,721,147
- 2021 Lowest Annual Net Sales: $752,058
- 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 2021 Measured Period for all Restaurants in the system that were open for operation during the entire 2021 Measured Period by the number of Restaurants that were open for operation during the entire 2021 Measured Period.
- Median annual net sales represent the middle annual net sales figure during the 2021 Measured Period for all Restaurants in the system that were open for operation during the entire 2021 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 2021 Measured Period and whose average net sales during the 2021 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 2021 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) ⬇️
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