Updated December 14, 2020.
Detailed Estimates of Wingstop Franchise Costs Based on Item 7 (Estimated Initial Investment) of Wingstop’s 2020 Franchise Disclosure Document
1. Development Fee: $10,000
- The only initial investment under the Development Agreement is the development fee. You currently pay a $10,000 development fee for your first Restaurant and development fees of $10,000 for each additional Restaurant you commit to develop under your Development Agreement.
2. Franchise Fee: $20,000
- You currently pay a $20,000 franchise fee for each Restaurant. Wingstop may increase that franchise fee in the future.
3. Rent: Amount Not Specified
- A Wingstop Restaurant occupies approximately 1,200 to 2,000 square feet of leased space, typically in an in-line (strip) shopping center in an urban or suburban commercial area.
- Your investment could be substantially higher if you decide to buy property for your Restaurant or to lease space in an enclosed mall or similar high-rent facility.
4. Security Deposits: $0 to $10,000
- Landlords typically charge a security deposit equal to one month’s rent and also may have site lease deposits that vary according to location.
- Utility and other companies typically charge security deposits that vary by locale and in relation to the customer’s credit history.
- Insurance companies may require deposits or prepayment of premiums.
- Some of these security deposits will be refundable depending on your agreement with the landlord or the utility and other companies.
5. Architectural/Engineering Fees: $7,500 to $24,000
- The architectural/engineering consultant’s fee portion represents the cost of plans and specifications when using approved Wingstop architectural and engineering consultants.
- The high-range charge will apply if the agency from which you obtain your building permit requires additional engineering for the Restaurant.
6. Professional Fees: $1,500 to $4,000
- Professional fees are for attorneys, accountants, or other professionals from whom you seek advice.
7. Leasehold Improvements: $150,000 to $385,000
- The high and low amounts reflect estimated leasehold improvement costs without any landlord tenant improvement allowances factored in but do include a 10% contingency (of the total estimated cost) for unexpected cost over-runs, delays, etc. (Not all franchisees receive tenant improvement allowances).
- Although Wingstop expects all projects to fall within the indicated range, as Wingstop Restaurants continue to expand to higher cost markets, these costs could change significantly.
- Wingstop may require you to upgrade, remodel, and refurbish the Restaurant during the franchise term. These changes might be based on the standards and specifications then in place for new Wingstop Restaurants.
8. Business and Operating Permits: $3,000 to $5,500
- In addition to a health department permit, you must obtain a permit to sell beer and wine.
- The low range assumes your Restaurant is located in a “wet” area and that you can obtain a “beer-only” permit. The high range assumes your Restaurant is located in a “dry” area and that you must establish a private club to qualify for an alcoholic beverage permit.
9. Decor Package: $7,000 to $10,100
- You must purchase your decor package from approved Wingstop system vendors before installation. This item includes standard interior and exterior decor, including shipping.
10. Furniture, Fixtures, Audio/Visual System, Equipment, and Smallwares: $113,400 to $137,000
- The high and low amounts represent the price to buy (not lease) new equipment. This range includes all kitchen equipment, furniture, stainless steel fixtures, millwork, small wares, and audio-visual equipment.
11. Point-of-Sale Register, Kitchen Display, Hardware, and Software: $15,000 to $27,100
- You must purchase and install the electronic Point-of-Sale system equipment and other required equipment according to Wingstop specifications.
12. Signs: $8,900 to $26,500
- You must purchase your signage package from approved Wingstop system vendors in accordance with Wingstop specifications. This item includes the standard Wingstop exterior signage, including shipping. All items must be prepaid at least 30 days before the start of construction.
13. Opening Inventory: $10,000 to $15,000
14. Opening Publicity and Promotions: $5,000 to $15,000
- If your Restaurant is located in a core market (currently, the Dallas-Fort Worth, Houston, or San Antonio, Texas DMAs; the Los Angeles, California DMA; or the Las Vegas, Nevada DMA), you must spend at least $5,000 to market your new Restaurant’s opening.
- If your Restaurant is located in an emerging market (currently, the Chicago, Illinois; Denver, Colorado; Miami-Ft. Lauderdale, Florida; Sacramento, San Francisco, or San Diego, California; Phoenix, Arizona; or Abilene, Austin, Corpus Christi, Harlingen, El Paso, Laredo, Lubbock, Monroe-El Dorado, Monterey-Salinas, Odessa-Midland, Tyler-Longview, or Victoria, Texas DMAs), you must spend at least $10,000 to market your new Restaurant’s opening.
- If your Restaurant is located in a market outside both the core and emerging markets, you must spend at least $15,000 to market your new Restaurant’s opening.
- You must spend the total amount within 2 months after your Restaurant opens for business (the “Grand Opening Period”).
15. Additional Funds – 3 Months: $25,000 to $35,000
- Wingstop assumes you will need the indicated amounts for rent, utilities, wages, inventory purchases, office supplies, printed materials, phone, facsimile, employee training, pre-opening and regular salaries for managers, wages of hourly employees, insurance premiums, debt service, real estate services, legal, Internet/intranet expense, accounting expenses, and other expenses during the initial phase of your Restaurant’s operation, which Wingstop estimates to be 3 months.
- Includes expenses for travel, lodging, meals, transportation, and incidental expenses for 2 trainees to attend the required training program.
16. Total (excluding real estate purchase and lease costs): $376,300 to $724,200