Wing-stop^®

Food & Beverage • Year: 2024

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What Is Wing-stop?

Wing-stop is a chicken-focused restaurant franchise offering chicken wings, boneless wings, tenders, chicken sandwiches, French fries, other foods, and beverages. Restaurants feature limited customer seating and rely on off-premises orders placed digitally via the company website or app or by phone. They may sell beer and wine where legally permitted and are typically located primarily in shopping centers, occupying approximately 1,200 to 2,000 square feet of leased retail space.

Wing-stop Franchise: Pros and Cons

Outstanding training and support (Training and Support Score 100, in the top quarter) helps new operators ramp faster and lower startup risk, but a large corporate fleet of 49 company-owned units (top 10% for Food & Beverage) poses a real risk of limited franchise growth and direct competition.

Pros

Training and Support Score: 100 (top quarter among all franchises) - unusually strong onboarding and ongoing support that lowers startup risk and helps you ramp operations faster.

Territory Protection Score: 51 (top quarter for Food & Beverage) - stronger-than-typical territorial protection, which reduces the chance of a nearby franchisor or franchise location cutting into your sales.

Franchisee Right of First Refusal: Yes (uncommon - only ~10.9% of Food & Beverage systems) - an uncommon contractual right that gives you first dibs on nearby or vacated units, helping you grow or protect your footprint and supporting exit value.

Cons

Num Franchisor‑Initiated Enforcement: 1 (top quarter for Food & Beverage) - the franchisor actively pursues enforcement actions, which can create operational friction and add compliance or legal costs for operators.

Reacquired Outlets: 3 (top 10% for Food & Beverage) - several outlets have been returned to company control, indicating some franchisees have exited the system earlier than typical.

Company‑Owned Units: 49 (top 10% for Food & Beverage) - a relatively large corporate fleet that may signal a growth approach favoring company stores over franchising, potentially limiting franchise expansion opportunities or creating direct competition.

Lawsuits & Legal Risk

NORMAL

Wing-stop: The Facts: Wing-stop initiated arbitration under its IMUFA against a French franchisee over development defaults, territorial exclusivity and sub-franchising rights; the tribunal made mixed findings-confirmed development breaches, upheld some exclusivity reductions but found an improper territory reduction-and proceedings continue on damages. The Advice: Review Item 12 territorial protections, post-termination and development obligations, dispute-resolution clauses, and remedies available for enforcement or appeal.

Territory Protection

51/100

Good

Wing-stop grants protected Trade Area and Development Area rights for restaurants and Special Outlets but excludes Non-Traditional Venues and does not create full exclusivity; the franchisor may operate or franchise other brands and sell via e‑commerce channels. Rights are contingent on meeting performance quotas and require franchisor approval for relocations.

Training & Support

100

Excellent

The brand provides an Extensive 175-hour training curriculum designed to prepare two trainees for launch. The program includes on-site launch support for operational readiness, which is available for an additional fee, and franchisees are responsible for travel and living expenses.

Franchisee Stability

100

Excellent

Wing-stop earns an Excellent Stability Score. Three-year turnover of 0.36% is well below the typical Food & Beverage franchise (around 5%), and it sits beneath the lowest-churn 10% of Food & Beverage franchises. Out of 16 total exits across the three reported years, franchisor buybacks dominated with 9, alongside 7 ceased operations, no terminations, and no non-renewals.

The dominance of franchisor buybacks suggests the franchisor is reclaiming units, which can mean it absorbs underperforming locations and may remove struggling outlets into corporate hands rather than recording them as franchisee exits. Prospective buyers should ask about the reasons for buybacks, request recent performance data for reacquired locations, speak with franchisees in affected markets, and review unit-level performance where reacquisitions occurred. For prospective franchisees, this is among the strongest retention profiles in franchising.

Unit Growth Analysis

This franchise grew from 1,521 units in 2022 to 1,712 in 2023 (+191 units, +12.56%) and to 1,926 in 2024 (+214 units, +12.50%), indicating a stable, consistent growth trajectory. For investors, the near-identical YoY rates (12.56% → 12.50%, a 0.06 percentage-point dip) combined with larger absolute additions (+214 vs. +191) signal healthy, scalable expansion and predictable unit-level growth rather than meaningful acceleration or decline.

How Much Does It Cost to Open a Wing-stop Franchise?

Opening a Wing-stop franchise requires a total initial investment of $259,400 to $912,100, according to the 2024 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$259,400

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$912,100

Minimum Investment Breakdown

Franchise Fee$10,000

Real Estate$107,300

Equipment & Assets$75,100

Reserves$25,000

Training$0

Other$42,000

Maximum Investment Breakdown

Franchise Fee$20,000

Real Estate$550,000

Equipment & Assets$226,100

Reserves$40,000

Training$0

Other$76,000

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do Wing-stop Franchise Owners Make?

Wing-stop franchise locations reported average gross sales of $1,816,486 and median gross sales of $1,669,009 in 2024, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$1,816,486

Median Gross Sales:

$1,669,009

High Gross Sales:

$5,021,415

Low Gross Sales:

$442,869

Sample Size:

1637

Percent Attaining Average:

42.0%

Audit Status:

Unaudited

Franchise vs Corporate Performance: Franchised restaurants averaged 1,816,486 in net sales for 2023, which is lower than WRI-owned restaurants' average of 2,233,700, indicating company-owned units outperformed franchised units on average during the measured period.

Performance Variability Analysis: Franchised unit annual net sales ranged widely from 442,869 to 5,021,415 with a mean (1,816,486) modestly above the median (1,669,009), suggesting a right-skewed distribution and substantial variability across locations; only 42% of franchised units exceeded the franchised average.

Data Scope and Limitations: The figures cover only restaurants open for the entire 2023 measured period and exclude newly opened, temporarily closed, and permanently closed units; the underlying sales data were not independently audited and no expense or net income breakdowns are provided.

Frequently Asked Questions

Is Wing-stop a good franchise to own?

Whether Wing-stop is a good franchise depends on your goals, experience, and local market. Key factors from the 2024 FDD: Wing-stop operates 1926 locations, received a legal risk score of 98/100, a training and support score of 100/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

Is a Wing-stop franchise worth the investment?

The value of a Wing-stop franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $259,400 to $912,100. Wing-stop disclosed average gross sales of $1,816,486 in 2024. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.

How long does it take to break even with a Wing-stop franchise?

Break-even timelines for Wing-stop franchises are not disclosed in the 2024 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is Wing-stop a franchise or a corporate-owned business?

As of the 2024 FDD, Wing-stop operates 1877 franchised locations and 49 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

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