In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Wingstop franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Wingstop franchise, based on Item 7 of the company’s 2018 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Wingstop franchise, based on Items 5 and 6 of the company’s 2018 FDD
- Section IV – Number of franchised and company-owned Wingstop outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of Wingstop’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017 average, median, highest, and lowest annual net sales information for (1) all Wingstop Restaurants (both franchised and company-owned), (2) separately for all franchised Wingstop Restaurants, and (3) separately for all company-owned Wingstop Restaurants, in operation in the United States during the entire 2017 Fiscal Year
Section I – Background Information
13 Things You Need to Know About the Wingstop Franchise
New Senior Vice President and Chief Marketing Officer
1. In early June 2018, Wingstop announced that Maurice Cooper had been appointed to the position of senior vice president and chief marketing officer. In his new role, Cooper is responsible for overseeing the chain’s global marketing strategy and execution, and reports to Charlie Morrison, chairman and CEO of Wingstop.
2. Cooper joined Wingstop with more than 15 years of experience as a consumer marketing veteran. Most recently, he served as global vice president of the $12B Holiday Inn Brand Family. Cooper’s previous background in building brands extends to The Coca-Cola Company where he was a venture leader, driving the development and scale of emerging brands such as Honest Tea, Illy Coffee, and Zico. He led the Coke Zero brand through one of its most substantial periods of growth, and also served as brand manager for several of the company’s multi-billion dollar, flagship brands including Coca-Cola and Sprite.
3. Cooper said, “I am thrilled to be joining the Wingstop team at a pivotal time in the company’s growth and to focus on a brand that is well respected for quality, service and flavor around the world. I look forward to collaborating with our leadership, partners and dedicated customer base to help Wingstop become a top ten global restaurant brand.”
Plans to Open Locations in Upstate New York
4. At the end of September 2018, a Wingstop franchise partner said that Wingstop has plans to open at least three Syracuse, New York area locations next year. There are currently eight Wingstop locations in Upstate New York and according to franchise partner Joey Berry, Wingstop has the territory from Albany to Syracuse. The plan is to open the first three locations in Liverpool, Syracuse, and DeWitt.
5. According to Berry, “We are in the process of scouting exact locations now. We are looking at a possible spot in Liverpool, and we also want somewhere near Syracuse University.”
Opens First Location in Panama
6. In late June 2018, Wingstop announced the opening of its first franchise restaurant in Panama City, Panama, now the ninth international operating country for Wingstop. The opening is part of an international expansion agreement with Operadora de Restaurantes Orna, a newly-formed restaurant group comprised of Grupo Lujor, a Master Wingstop Franchisee from Mexico, and International Brands Panama as the local operating partners.
7. Operadora de Restaurantes Orna and Wingstop have plans to open an additional two locations in 2018, with a long-term goal of ten total locations over the next five years across Panama.
8. Larry Kruguer, chief operating officer at Wingstop, said, “Expanding Wingstop into our ninth country outside the U.S. continues our growth trajectory towards the brand becoming a top 10 global restaurant brand. Panama is a major country in Central America with an affinity for American brands, and we’re excited to enter our third country in Latin America with a team that knows our brand so well.”
Launches Bundle Deal for Big Nights In
9. At the beginning of October 2018, Wingstop launched its Big Night In Bundle deal at participating locations and at the Wingstop Food Truck, which recently toured cities across the country to add flavor to college football gatherings. The Big Night In Bundle, which is available for a limited time, features 25 boneless wings in three flavors with three dips for $15.99.
10. The Wingstop Food Truck stopped by at the following locations: Kansas State University in Manhattan, Kansas (October 13); Morehouse College in Atlanta, Georgia (October 27); and Texas Tech in Lubbock, Texas (November 3). Each tailgate tour was open to the public and featured free wings, tailgate games like Wing Pong, and prizes.
11. Wingstop was founded in 1994 by Antonio Swad in Garland, Texas. The restaurant chain is aviation themed, which was inspired by its core menu item, chicken wings. The first Wingstop location was a success and in 1997, the first franchised location opened. By the early 2000s, Wingstop had sold over one billion wings.
12. Today, Wingstop has restaurants around the world in countries such as the United States, Mexico, Singapore, the Philippines, Indonesia, and the United Arab Emirates.
Entrepreneur’s Franchise 500
13. Wingstop ranked No. 31 on Entrepreneur’s 2018 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Wingstop franchise costs, based on Item 7 of the company’s 2018 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Wingstop’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 652
- Outlets at the End of the Year: 767
- Net Change: +115
- Outlets at the Start of the Year: 767
- Outlets at the End of the Year: 901
- Net Change: +134
- Outlets at the Start of the Year: 901
- Outlets at the End of the Year: 1,004
- Net Change: +103
- Outlets at the Start of the Year: 19
- Outlets at the End of the Year: 19
- Net Change: 0
- Outlets at the Start of the Year: 19
- Outlets at the End of the Year: 21
- Net Change: +2
- Outlets at the Start of the Year: 21
- Outlets at the End of the Year: 23
- Net Change: +2
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
- This financial performance representation contains actual, historical average, median, and high/low annual net sales information during a 52-week fiscal period (from January 1, 2017, through December 30, 2017) for (1) all Wingstop Restaurants (both franchised and company-owned), (2) separately for all franchised Wingstop Restaurants, and (3) separately for all company-owned Wingstop Restaurants, that were open for business in the United States during Wingstop’s entire 52-week fiscal year (from January 1, 2017 through December 30, 2017).
- Included in this Item 19 are the results of all Wingstop Restaurants in the system in the United States that were open for operation during the entire Measured Period from January 1, 2017, through December 30, 2017 (the “2017 Fiscal Year”), including both franchised and company-owned Restaurants.
- The average for the Measured Period includes all Restaurants that were open during the entire 2017 Fiscal Year, even if their ownership changed during that time period.
- Excluded from this Item 19 are the results of 115 franchised Restaurants that opened during the Measured Period and therefore were not open for operation during the entire Measured Period, 31 franchised Restaurants that were temporarily closed for multiple days in a row during the Measured Period (most due to hurricanes), and 10 franchised Restaurants that closed during the Measured Period.
Franchised and Company-Owned Wingstop Restaurants