Wingstop Franchise Costs, Fees & FDD

Year Business Began: 1994

Franchising Since: 1997

Headquarters: Dallas, Texas

Estimated Number of Units: 2,355

Franchise Description: Wingstop Franchising LLC is the franchisor. The franchise is to operate a restaurant under the “WING-STOP” trade name and business system that serves cooked-to-order, hand-sauced and tossed chicken wings, boneless wings, tenders, chicken sandwiches, and fresh-cut, seasoned fries, and beverages.
Training Overview: The training program must be completed to the franchisor’s satisfaction by at least two people—franchisees or their designated principal and a general manager—and both persons must intend to work in the restaurant on a full-time basis. The training class lasts 22 consecutive days with at least one day off each week and must be completed within the 22 consecutive days. The training hours will be split between classroom and on-the-job training in varying amounts. If the restaurant is the franchisee’s first restaurant, two opening restaurant trainers will go to the restaurant for up to 14 days. Supplemental, refresher training or recertification examination may be required for all franchisees and their managers. The franchisor may, at its sole discretion, require supplemental, refresher training or recertification examination for all franchisees and their managers.

Territory Granted: The Franchise Agreement provides franchisees competitive protection in a trade area around the restaurant. The franchisor will not open or grant a franchise for another restaurant (as defined in the Franchise Agreement) the physical premises of which are located in the trade area. Except in high-density population centers, a restaurant's trade area consists of the area inside a circle whose center lies at the restaurant's front door and whose radius extends outward from the circle's center. The radius for a franchisee’s restaurant depends on the market area, including population density, drive times, and similar factors. There is no set minimum or maximum radius. However, the franchisor does not anticipate (as a general rule) that the radius will ever be greater than three miles from the restaurant or, if the restaurant is located in the downtown area of a major city, less than two blocks. The franchisee’s restaurant's specific radius will be somewhere in that range depending on the specific market and circumstances. However, if a franchisee operates in a non-traditional venue, the trade area might be limited to the physical footprint of the specific site/premises.

Obligations and Restrictions: If franchisees are individuals, the franchisor strongly recommends (but does not require) that they manage the restaurant personally. If franchisees choose not to manage the restaurant, they must appoint an individual, called a general manager, to assume personal responsibility for supervising the restaurant's day-to-day operations and another individual, called an assistant manager, to assist in managing the restaurant. If franchisees are a business entity, they must select a “designated principal,” who is one of the owners who will oversee and supervise the restaurant’s management and operation. The Franchise Agreement obligates franchisees to sell bone-in wings, boneless wings, tenders, chicken sandwiches, and other chicken products (promotional or new product offerings) made with the franchisor’s proprietary sauces and seasonings and not to use any other sauces or seasonings. The Franchise Agreement also requires franchisees to sell all food and beverage items included on the franchisor’s standard menu in the quantities listed, as periodically revised (although the franchisor will not specify the brands of any alcoholic beverages for the restaurant to sell). Franchisees may not offer any foods, beverages, or other merchandise that is not included on the authorized restaurant menu or merchandise list, as periodically revised, without first obtaining written consent.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from either the restaurant's scheduled opening date or the actual date on which the restaurant opens for business, whichever is earlier. If franchisees are in full compliance, the current Franchise Agreement allows them to renew the franchise for two additional 10-year terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Development Fee	$25,000	$25,000
Franchise Fee	$25,000	$25,000
Rent	Varies
Security Deposits	$0	$10,000
Architectural/Engineering Fees	$7,300	$30,000
Professional Fees	$2,500	$7,500
Leasehold Improvements	$100,000	$565,000
Business and Operating Permits	$4,500	$8,500
Décor Package	$11,300	$39,400
Furniture, Fixtures, Audio/Visual System, Equipment and Smallwares	$50,400	$167,000
Point-of-Sale Register, Kitchen Display, Hardware and Software and Related Items	$28,000	$40,000
Signs	$4,200	$25,100
Opening Inventory	$10,000	$16,000
Opening Publicity and Promotions	$5,000	$15,000
Additional Funds – 3 months	$25,000	$40,000
ESTIMATED TOTAL (excludes real estate purchase and lease costs)	$298,200	$1,013,500

 
Other Fees

Type of Fee	Amount
Royalties	6% of gross sales.
Ad Fund	Currently 5.5% of gross sales.
Ad Customization Fee	Reasonable charge.
Local Advertising and Promotional Materials	The franchisor presently does not require franchisees to spend anything on local advertising.
Insurance	As provided in the operations manual.
National Gift Card Program Charges	Approximately 10% of value of Wingstop gift cards issued/sold by third-party retailers (i.e., not by Wingstop restaurants) for eventual redemption at Wingstop restaurants; amount may change in future based on charges by third-party gift card program administrator.
Indemnification	Unlimited (but depends on nature of claim).
Audit Fees	Cost of audit, including auditor's travel, meals, and lodging expenses (depends on extent of the franchisee’s noncompliance and cooperation with the franchisor).
Non-Reporting Fee	$250
Interest/Late Charges	Interest on past-due obligations to the franchisor and its affiliates at the highest commercial contract interest rate the law permits.
Transfer Fees	$15,000
Renewal Fee	$25,000
Website Maintenance Fee	$25 initial set up cost/up to $50 per month.
Intranet Maintenance and Development Fee	Up to $50 per month.
Operations Manual(s) Training Materials Replacement Charge	$15.64 for recipe guide, $1.68 for spec sheets, and $4.47 for product quality guide, plus shipping costs.
Annual Convention Attendance Charge	Registration fees vary depending on location, activities and other matters.
Product and Service Purchases	Varies depending on products and services franchisees buy from the franchisor or its affiliates.
Attorneys’ Fees and Costs	Will vary under circumstances and depend on nature of the franchisee’s non-compliance.
Liquidated Damages	See FDD.
Supplemental Training/Assistance	Up to $1,000 per trainer, plus out-of-pocket costs.
Tax Reimbursement	Out-of-pocket cost reimbursement.
Relocation	$5,000
Transfer Marketing Expenditure	$5,000

The above information has been compiled from the FDD of Wingstop. Year of FDD: 2025.
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