You might be considering finding the right business opportunity. There are many of them available out there. However, you might have to think about some aspects. You might think that you cannot start the business from scratch.
You cannot deal with the trial and error that can be found often when people just start the business. In this circumstance, you might consider choosing a franchise for your business.
Of course, it is super easy to find many kinds of franchise options right now. If you know the wingstop franchise average profit, you might feel that this is the right franchise option for you.
How to Open Wingstop Franchise
Well, Wingstop is not a new brand at all. We can find them everywhere. There is no doubt about this because it has more than 1,200 locations in the United States. You can also find this franchise overseas. It means that there are more than 1,300 locations worldwide.
From so many locations out there, not all of them are fully owned by the company. Almost a thousand of them are franchises. The wingstop company was founded in 1994, but the first franchise was offered in 1997.
There must be a reason why this brand can spread all around the world. You can guess from its name that this is a business about chicken wings. People love this brand because they can enjoy chicken wings with a variety of flavors.
The flavors make a great recipe and they are unique to the brand. This company is focused on takeout business. This is the reason why you can find many Wingstop storefronts with a smaller size than other fast-food outlets.
Besides various kinds of the chicken menu and other side dishes, some stores with licenses also sell wine and beer.
Just because you know that Wingstop can be found everywhere, you will not choose this franchise right away. You have to invest in this business so you have to make sure that this business is reliable. You need to be well informed about this business first.
The very first thing you need to know is sales. The annual sales of an average Wingstop store are about $1.2 million. When you are talking about the chain restaurant business, you can find that this brand has a positive growth that reaches 31.4% in 2019 compared to 2015.
The revenue in 2019 reached $53 million. What about the wingstop franchise average profit? It must be the biggest question you want to know. The company profit was more than $20 million in 2019. Online sales played an important role in this growth.
A franchise business sounds like a great choice for your business, but it does not mean that you can be careless about the details of the business. Between 2016-2019, the growth of Wingstop franchise reached more than 38%.
It is a pretty huge amount of additional franchise stores over three years. Why is this information important? You need to know the information about the franchise growth because it can be more than the reflection of the established business markets.
You might think that the market might be limited since there are so many stores out there. However, you still have the opportunity to open a Wingstop franchise since the business has an expansion opportunity in different markets.
How much money do you need to prepare when you want to open a Wingstop franchise business? It is another important question before you finally make the business agreement. When you start a franchise business, you have to deal with two types of costs, including one-time costs and on-going fees.
You have to prepare between $390,000 and more than $775,000 as an initial investment. This initial cost may vary depending on the restaurant type and location of the business. You also have to pay a franchise fee of $20,000 and a development fee of $10,000 per store.
Remember, you can join the business by opening at least three stores. You need to pay the net worth and cash liquidity. Next, you also have to be prepared for paying the ongoing fees including royalty fee, marketing fee, and local advertising and promotional fee.
There is no direct financing offered by the company, but Wingstop has relationships with some third-party lenders.
What are the reasons why you should consider this franchise business? The very first reason is the cost. You might be looking for a franchise opportunity at a lower cost. You can compare the cost of starting some franchises and you will find that Wingstop franchise cost is considered slow.
You do not have to pay a high royalty fee as well. It is great if you do not have too much capital for starting a franchise business. Territory protection is also guaranteed by the company. It means that you do not have to worry about other franchisees opened in your market.
The company will not allow it. It means that your sales will be shielded. The running cost might be another challenge to consider when running a franchise business. You worry that you have to pay a large amount of money on employee salary.
Since Wingstop focuses more on online business, it means that you will not need a large staff right away. It can help you to rest assured that you do not have to be frustrated by finding the right hiring strategy.
The story about wingstop franchise average profit might sound really promising, but you cannot forget that every franchise business also has drawbacks. By considering the pros and cons of Wingstop franchise business, you can decide that this business is for you or not.
You might need to reconsider choosing this franchise business if you are looking for a franchise business that allows you to be offsite. This company wants you as the owner to have a hands-on role, although it does not mean that you have to be the operator.
This franchise business comes with limited menu options. It will be simpler for the owners, but consumers might get bored easily. Compared to other franchises, you also have to pay for higher marketing and advertising fees. So, do you think that Wingstop is the franchise business for you?