Wingstop
Date Incorporation: 1996
Franchising Since: 1997
Headquarters: Texas
Description: Wingstop restaurants offer buffalo-style chicken wings in a variety of highly-seasoned flavors, complementary side dishes and beverages, including beer and wine. Wingstop restaurants have limited customer seating and are located primarily in shopping centers.
Franchise Offer: The franchisee will be granted the right to operate one Wingstop restaurant at an approved location. The franchisee may also be allowed to open "take-out only" restaurants in special circumstances. The franchisee may also enter a Development Agreement and open multiple restaurants.
Financial Assistance: The franchisor does not offer direct or indirect financing.
Training and Assistance: The franchisee and the general manager must complete the initial 4-week training program. This consists of 161 hours of classroom training and 39 hours of On-the-Job training, located at a training facility.
Territory: The franchisee will be granted an exclusive territory and will receive competitive protection in a trade area around the restaurant.
Term of Agreement and Renewal: The length of the franchise term is 10 years, with an option for renew for an additional 10 years.
Obligations and Restrictions: The franchisee is strongly recommended but not required, to manage the restaurant personally. The franchisee or an appointed general manager must assume personal responsibility for supervising the restaurant's day-to-day operations.
Total Number of Units: 333 outlets at the end of 2007
Total Number of franchises Units: 318 franchised outlets at the end of 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial fees: Development fee Franchise fee |
$8,500 $10,000 |
$8,500 $16,500 |
| Security deposits | $2,000 | $8,000 |
| Architectural/engineering fees | $10,000 | $12,000 |
| Professional fees | $1,500 | $4,000 |
| Leasehold improvements | $99,000 | $199,000 |
| Business and operating permits | $1,000 | $3,500 |
| Decor package | $6,500 | $6,500 |
| Furniture, fixtures, audio/visual system, equipment and smallwares | $70,000 | $80,500 |
| Point of Sale register, hardware and software | $8,440 | $10,570 |
| Signs | $8,000 | $12,500 |
| Phone system | $1,000 | $2,500 |
| Opening inventory | $2,000 | $4,000 |
| Opening publicity and promotions | $2,500 | $5,000 |
| Additional funds - 3 months | $25,000 | $35,000 |
| Totals (excluding real estate purchase and lease costs) | $255,440 | $408,070 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalties | 5% of gross sales |
| Ad fund | 2% of gross sales |
| Ad customization | Reasonable charge |
| Local advertising and promotional materials | The franchise agreement stipulates no amount, but we recommend 4% of gross sales. We can set a minimum 2% of gross sales rate when a local co-operative forms |
| Insurance | As provided in the operations manual; we currently require general liability insurance of $1 million per occurrence, $2 million aggregate, and a $2 million umbrella: workers' compensation insurance; and liquor liability insurance |
| Indemnification | Unlimited |
| Audit fees | Cost of audit, including auditor's travel, meal and lodging expenses |
| Non-reporting | $250 |
| Interest/late charges | The franchise agreement provides for interest on past-due obligations to us and our affiliates at the highest commercial contract interest rate permitted by applicable law |
| Transfer fees | $10,000 |
| Intranet/website maintenance fee | $25 initial set up cost/up to $50 per month |
| Operations manual(s)/training materials replacement charge | $125 for manual and $5 for training DVD plus shipping cost |
| Annual convention attendance charge | Currently $425 per attendee |
| Attorneys' fees and costs | Will vary under circumstances |
| Supplemental training/assistance | Up to $1,000 per student, plus out-of-pocket costs |
The above information has been taken from the UFOC/FDD of Wingstop
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