Wingstop Franchise Startup Cost, Profit & Opportunities
Are you interested in joining a unique restaurant franchising opportunity?
Wingstop specializes in serving chicken wings in an assortment of highly-seasoned flavors. This is in addition to beer, wine, beverages, other food menu items including fresh-cut French fries. The best part is that it offers prospective franchisees like you an opportunity to become a part of the Wingstop family.
We will be supplying you with information on this franchise opportunity as well as how to begin. This is in addition to the cost breakdown among other things.
Wingstop was founded by Antonio Swad in 1994. However, it took just 4 years to open its franchising arm and since then, the company has witnessed significant growth. Today, Wingstop is seeking partners to expand its franchise outlets to more locations across the United States and beyond.
At the international stage, it is seeking to open more franchise units in Western Europe, South America, the Middle East, and Asia.
Becoming a Wingstop franchisee comes with obligations. There are financial requirements you must meet to qualify. These include the initial investment, net-worth, liquid cash, and ongoing fees among others.
Following the explanation of these concepts, we’ll also look closer at other finer details of its cost. So, without delay let’s begin.
The initial investment is the total amount to open a Wingstop franchise. It covers expenses such as the working capital, business licenses, real estate equipment, supplies, and the franchise fee. The initial investment demanded by Wingstop ranges between $374,089 to $782,442. The cost you pay depends on the franchise size you seek.
How does one know what franchise sizes are available? Easy! All information relating to that is made available only after your application is submitted. You are briefed on all available investment options to enable you to decide what is best for you.
i. A Breakdown Of The Initial Investment
To understand the initial investment costs better, it is necessary to further explain the smaller details. The initial investment includes expenses such as architect & engineering fees ranging from $6,000 to $23,350, professional fees estimated between $1,500 to $4,000, permit expeditor fees ranging between $1,200 to $2,500 and business operating permits from $3,000 to $5,500.
Franchisees get to pay for decor package ranging between $7,500 to $10,925. Opening publicity & promotions from $5,000 to $15,000, opening inventory ranging between $10,000 to $15,0000 and phone system at $1,725 to $2,000. Leasehold improvements range from $142,669 to $442,062 That’s not all though.
There are sign fees ranging from $8,500 to $36,315, POS register (both hardware & software) from $22,250 to $30,500 in addition to furniture, smallwares, equipment, fixtures and audio/visual systems ranging between $106,395 to $135,790. Franchise fee from 20,000, site survey fees from $2,500, and additional funds from $25,000 to $35,000.
Wingstop requires all prospective franchisees to be worth a minimum of $1,200,000.00. For better understanding, your net-worth should only consist of your assets such as cash, stocks, retirement accounts and real estate among others.
Such things as your mortgage, credit card debts and car payments are regarded as liabilities and won’t be included.
Liquid Cash Requirement
Prospective franchisees must have minimum liquid cash of $600,000 to be be considered or qualified for consideration.
This is necessary as it shows the franchisor that you are financially capable of kick-start or proceed with the investment process.
Initial Franchise Fee
The initial franchise fee starts at $20,000. It is the initial fee all new franchisees must pay to Wingstop. Now, this franchise fee may differ based on multiple factors such as location and experience among other things.
Details on this will be supplied upon application.
The initial franchise fee gives you certain privileges such as having the right to use the franchisor’s trademarks. Other benefits include the use of its business systems and its name as well as its brand.
Prospective franchisees in need of financing are covered by Wingstop. However, these come with pre-conditions that must be met. The franchisor has a relationship with third-party financing sources. These provide financing covering several areas such as payroll, accounts receivable, inventory, equipment, startup costs, and franchise fee.
To reward veterans for their service and sacrifices to the country, Wingstop gives a whopping $15,000 discount off of the first-store franchise fee. A proof will be required to benefit from this opportunity.
The Wingstop franchise wasn’t listed at #42 among Entrepreneur Magazine’s top 500 franchises for nothing. This franchise opportunity provides a wide range of support covering several areas of its operations. These include training. The three broad categories include ongoing support, marketing, and training.
Let’s briefly discuss each of these.
Wingstop offers franchisees ongoing support in a wide range of critical areas. This helps significantly in enhancing their productivity and chances for success.
Areas covered include a grand opening ceremony, online support, organizing meetings and conventions, periodic newsletter circulation, access to Wingstop’s purchasing cooperatives as well as its franchisee intranet platform.
Other benefits include site selection, field operations, in addition to security and safety procedures.
As a Wingstop franchisee, you benefit from its marketing support. These include loyalty programs, cooperative advertising, email marketing, use of ad templates, national and regional media advertising and social media marketing.
Others are web development and SEO.
Training is highly crucial to your success as a Wingstop franchisee. The franchisee takes the time the guide and put you through the processes involved in successfully running your outlet. Training begins on-site and lasts 143 hours (approximately 5 days).
Another training is organized by Wingstop at its corporate headquarters which will last for 28.5 hours
Want to proceed? All you’ll need to do is fill and submit its online form. Here, you are asked basic questions such as your name, address, city, state, location or country, as well as contact address. You are contacted by a representative from Wingstop for further discussions.
Have you found the information you seek? We have covered as much as is required for any prospective franchisee to proceed with their application. When presented with the Franchise Disclosure Document, ensure you get legal advice. This is a safer way to proceed before signing.