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QSR 2,154 Units

WING-STOP Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$298,200 – $1,013,500

Franchise Fee

$25,000

Royalty Rate

6.0%

Initial Investment Range

Low: $298,200 High: $1,013,500

The total initial investment to open a WING-STOP franchise ranges from $298,200 to $1,013,500, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $25,000.

Midpoint estimate: $655,850

Franchise Fee

$25,000

One-time initial fee

The WING-STOP franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the WING-STOP brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

4.0%

of gross revenue

Total Ongoing Fee Burden: 10.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalties 6.0 PCT Payable weekly by automatic debit on Tuesday for Gross Sales during the week ended the prior Saturday. Gross Sales include all revenue from Restaurant but exclude sales taxes, coupon credits, employee discounts, third-party delivery fees, and revenue from gift cards sold (although include full value of transactions paid with gift cards). Reduced to 5% for renewing franchisees who bought and installed required POS system by December 31, 2016.
Ad Fund 5.5 PCT Current rate is 5.5% of Gross Sales. Ad Fund contributions may be adjusted annually to be no less than 5% and no more than 5.5% to support digital and technology-related costs. Payable weekly same as royalties. Combined Ad Fund contribution and local advertising may not exceed 5.5% of Gross Sales absent franchisee vote. Can be increased above 5.5% (but not decreased) if franchisees owning 60% or more of U.S. franchised Restaurants vote to require increase. Franchisor and affiliates do not vote on increases above what they may unilaterally establish.
Ad Customization Fee N/A VARIABLE Reasonable charge upon delivery of customized advertising materials showing information about Restaurant. Fee is not currently charged. Only applies if franchisor or affiliates elect to provide customized copies of advertising materials.

What You Get

Category

QSR

System Size

2,154 units

Franchise Score

93

out of 100

Wingstop operates a fast-casual restaurant chain specializing in chicken wings with signature sauces and flavors. The franchise focuses on quality wing preparation, bold flavors, and delivery-driven operations to capture the growing wings category.

Financial Performance (Item 19)

Median Revenue

$1,081,665

per year, per location

Mean Revenue

$2,128,349

per year, per location

Profitability Estimate

Estimated Owner Profit

$108,167

per year

Profit Margin

10.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 6.1 years

Based on midpoint investment of $655,850 and estimated annual owner profit of $108,167.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.0%

Low risk — below industry average

Net Unit Growth

+656 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 1498 +187 1678
2023 1678 +203 1877
2024 1877 +281 2154

Is a WING-STOP Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the WING-STOP franchise opportunity:

Overall Score

93/100

Strong opportunity

Est. Payback Period

6.1 yrs

Longer payback

Risk Level

Low

0.0% annual closure rate

WING-STOP scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $1,081,665 and a combined fee burden of 10.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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