Connect with us

How To's

The Actual Cost of Owning a Wingstop Franchise

Published

on

Who doesn’t love chicken wings? The majority of our population always craves a juicy chicken wing doused in our favorite sauce. If you’re planning to venture into the chicken business, this Wingstop franchise article is something that you’re looking for. Let’s dive into the details of owning this hand-sauced chicken franchise and more! 

Wingstop Franchise: Overview

Wingstop started business in 1994 in Dallas, Texas. It then ventured into franchising in 1997 and successfully managed to grow into 1,445 units over the years. Wingstop Franchising LLC, the franchisor, grants the franchisee to operate a restaurant in an approved territory. As a franchisee, you have access to the following: 

  • Variety of highly-seasoned flavors of chicken wings
  • Fresh-cut french fries
  • Other foods
  • Beverages
  • Beer or wine

Training Program

At least two people, the franchisee and a general manager should complete the training program until the franchisor’s satisfaction. If the franchisee is preoccupied, sending out a designated principal and general manager for training will suffice. Both persons who completed the training should work full-time in the restaurant. 

Typically, the overall training lasts 25 consecutive days with one day off each week. The total training hours will be split between two sites— classroom and on-the-job training. Upon opening the franchisee’s first Wingstop restaurant, the franchisor will send two trainers for the opening restaurant to assist for at least 14 days. The franchisor has sole discretion to require the following to all franchisees and their managers: 

  • Supplemental
  • Refresher
  • Recertification examination

Franchise Territory

According to the Franchise Agreement, the franchisor will guarantee competitive protection to the franchisee in a trade area around the restaurant’s premises. This agreement means that the franchisor will not open or grant any other franchisee to open another restaurant around the granted trade area. Aside from high-density population areas, a restaurant’s trade area starts from its main door and extends into a radius outwards. The radius of the franchisee’s trade area will depend on the following factors: 

  • Market area
  • Population density
  • Specific market
  • Drive times

A potential franchisee must note that there is no specified minimum and maximum radius, so it entirely depends on the location you choose. As a general rule, the radius will never go as far as three miles from the restaurant. However, if a franchisee wants to operate in a non-traditional venue, the trade area is expected to be limited to the specified site location’s physical footprint. 

What’s Expected from a Franchisee? 

As a franchisee, you’ll be expected of the following: 

  • If the franchisee is an individual, the franchisor encourages full-time management of the restaurant. 
  • If a franchisee chooses not to be involved, the owner must appoint a general manager to supervise the day-to-day restaurant operation. It’s also required to have an assistant manager to help with the restaurant. 
  • If a franchisee is a business entity, the majority must select a designated principal. The appointed principal must be one of the owners and will oversee the restaurant’s operation. 
  • According to the Franchise Agreement, franchisees must use the proprietary sauces and seasonings of fried chicken wings. Other ingredients or herbs not specified will not be allowed. 
  • Franchisees are required to sell all food and beverages included in the standard menu. 
  • Unauthorized food, beverage, merchandise, and other products are not allowed without obtaining written consent from the franchisor. 

Term of Franchise

The initial Wingstop franchise term is ten years, starting from the restaurant’s opening date. If franchisees showcase full compliance within the initial ten years, the current Franchise Agreement will allow another 10-year renewal.

Financial Assistance

Unfortunately, the franchisor does not offer any direct or indirect financing support. 

Did You Know?

Before diving into the full Wingstop franchise cost breakdown, here are interesting facts about the establishment: 

  • Wingstop has a Wing Calculator that will help customers with their orders based on the number of people. After determining your crew’s number, you’ll have to pick the level of your hunger, whether you’re feeling snacky, hungry, or starving. 
  • The restaurant has an online ordering service called “Wingbot.” 
  • Wingstop founders also established Pizza Patron. 
  • Over the years, Wingstop has served more than one billion chicken wings! 

Your Investment

Now, let’s dive into the full cost breakdown of the Wingstop franchise. Here are the costs that you should know: 

Name of FeeLowHigh
Development Fee$10,000$10,000
Franchise Fee$20,000$20,000
RentVaries
Security Deposits$0$10,000
Architectural/Engineering Fees$7,500$24,000
Professional Fees$1,500$4,000
Leasehold Improvements$150,000$385,000
Business and Operating Permits$3,000$5,500
Décor Package$7,000$10,100
Furniture, Fixtures, Audio/Visual System, Equipment and Smallwares$113,400$137,000
Point-of-Sale Register, Kitchen Display, Hardware and Software$15,000$27,100
Signs$8,900$26,500
Opening Inventory$10,000$15,000
Opening Publicity and Promotions$5,000$15,000
Additional Funds – 3 months$25,000$35,000
ESTIMATED TOTAL (excludes real estate purchase and lease costs)$376,300$724,200

Other Fees You Should Know

Type of FeeAmount
Royalty6% of gross sales.
Ad Fund4% of gross sales.
Ad Customization FeeReasonable charge.
Local Advertising and Promotional MaterialsFranchisees must spend 1.5% of their restaurants’ quarterly gross sales on local advertising during 2020 and 2% thereafter.
InsuranceAs provided in the operations manual.
National Gift Card Program ChargesApproximately 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.
IndemnificationUnlimited but depends on nature of claim.
Audit FeesCost of audit, including auditor’s travel, meals, and lodging expenses It depends on extent of the franchisee’s noncompliance and cooperation with the franchisor.
Non-Reporting Fee$250
Interest/Late ChargesInterest on past-due obligations to the franchisor and its affiliates at the highest commercial contract interest rate the law permits.
Transfer Fees$10,000
Renewal Fee25% of the sum of the then current development fee and franchise fee ($7,500 currently); If franchisees renew their franchise for a 2nd 10-year renewal term after the first 10-year renewal term ends, they must pay 50% of the sum of the then current development fee and franchise fee (currently $15,000).
Website Maintenance Fee$25 initial set up cost/up to $50 per month.
Intranet Maintenance and Development FeeUp to $50 per month.
Operations Manual(s) Training Materials Replacement Charge$35 for recipe guide, $5 for spec sheets plus shipping costs.
Annual Convention Attendance Charge$500 per attendee.
Product and Service PurchasesVaries depending on products and services franchisees buy from the franchisor or its affiliates.
Attorneys’ Fees and CostsVaries under circumstances and depends on nature of the franchisee’s non-compliance.
Liquidated DamagesSee FDD.
Supplemental Training/AssistanceUp to $1,000 per trainer, plus out-of-pocket costs.
Tax ReimbursementOut-of-pocket cost reimbursement.
Relocation$5,000
Transfer Marketing Expenditure$2,500 – $7,500

For more franchise ventures, explore Franchise How

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

How To's

The Rise of Paris Banh Mi Franchise

Published

on

paris banh mi restaurant exterior

Are you gearing up for a new business in 2024? Forget the next big tech start-up -the latest trend in town might be a perfectly toasted baguette. Take Paris Banh Mi Cafe and Bakery, for instance. This Vietnamese sandwich shop is rapidly growing, with locations popping up from coast to coast, from California to Florida. 

But what’s the secret behind their success? Explore why the Paris Banh Mi franchise has snowballed in the last two years and be inspired to start your own business .  

About Paris Banh Mi

paris banh mi homepage

The French baguette was introduced in Vietnam in the mid-19th century when the country was still a part of French Indochina. In the 1950s, Saigon saw the birth of a unique Vietnamese sandwich, “bánh mì,” which quickly became a favorite food of a large part of the population.

The story of Paris Banh Mi started in Orlando, Florida, at 1021 E Colonial Drive in 2019. Hien Tran and Doan Nguyen, a married couple passionate about food, opened the first Paris Banh Mi location. Their concept was simple: bring the delicious flavors of Vietnamese banh mi sandwiches, traditionally baguettes filled with savory meats and pickled vegetables, to a broader audience. 

The customers quickly fell in love with the fresh ingredients, bold flavors, and convenient fast-casual setting. Now,  Paris Banh Mi Cafe and Bakery promises to bring their customers the best “Baguette Banh Mi” taste.

In just two years, the laid-back cafe and bakery in Florida multiplied into a chain of stores in the  county. Today, Paris Banh Mi is serving customers in 46 locations all across the USA. The company plans to expand to 100+ locations by 2026. 

Each Paris Banh Mi Cafe and Bakery has a clean and spacious dining area, fast service, friendly staff, and a selection of delicious food and pastries. Take a peek at some of their mouth-watering baguette sandwiches filled with authentic Vietnamese ingredients.

paris banh mi sandwiches

Source: Paris Banh Mi website

For those craving something sweet, the bakery indulges you with a variety of French pastries. Check out their sandwiches, pastries, and beverages on the Paris Banh Mi Cafe and Bakery menu page.

paris banh mi French pastries

Source: Paris Banh Mi website

Why Own a Paris Banh Mi Franchise

Paris Banh Mi is a franchised quick-service restaurant offering exciting opportunities for aspiring business owners. Many nail salon owners and aspiring entrepreneurs are switching to buying a Paris Banh Mi franchise. The main reasons why they love Paris are:

  • It opens a great opportunity and is more profitable. 
  • Seamless franchising process and fewer things to worry about
  • Required low capital to open
  • Higher end-of-year profits

The benefits extend beyond operational efficiency. Paris Banh Mi boasts a surprisingly low-cost entry point compared to other franchises. 

The initial franchise fee is manageable at $60,000. The total investment for opening a Paris Banh Mi can range from $200,000 to $500,000. This amount reflects the option to acquire a pre-existing, equipped location (second generation) for a lower investment cost or a complete build-out from scratch option. 

Regardless of the chosen route, the investment is significantly lower than that of building a business from the ground up, making Paris Banh Mi an attractive option for many entrepreneurs.

Licensing Information

Owning a Paris Banh Mi franchise is not just about delicious food! The company is looking for dedicated individuals who can run their restaurant full-time. They will provide a multi-day training program for new franchisees. In addition, Paris Banh Mi offers ongoing support for franchisees, guiding them to make informed decisions and thrive in this exciting industry.

You’re a good fit for a Paris Banh Mi Cafe Bakery franchise if you are: 

  • Passionate about food, especially fresh baguettes and pastries
  • A self-starter with a proven track record in business
  • Financially responsible with a focus on results
  • Ready to fully commit to building the Paris Banh Mi brand

If you have what it takes, don’t hesitate to contact them through the franchise hotlines on their franchise opportunities page

Conclusion

Buying a restaurant franchise is one of the most attractive routes in the world of franchising. Paris Banh Mi makes owning your own business a lot easier. Forget the high costs and headaches of starting from scratch. Their low investment and comprehensive training program mean you can be your own boss with a delicious product.  If you are ready to take a bite out of success, contact Paris Banh Mi today!

Continue Reading

How To's

Chick-fil-A Franchising Opportunities in 2024

Published

on

chick fil a store

Buying a franchise from Chick-fil-A is an excellent money-making and healthy option. The fast-food chain has been serving hungry consumers the most delicious chicken sandwiches unmatched by other fast-food restaurants. Buying a Chick-fil-A franchise means investing in a good business and your future. It also lets you continue the culture behind the popular food chain. Here are Chick-fil-A franchising opportunities that will give you entrepreneurial freedom in 2024. 

Company Overview

chick-fil-a logo and founder

Founded in 1946 by Truett Cathy, Chick-fil-A is deemed one of the longest-running chicken sandwich chains in the United States. The founder opened his first chain in Hapeville, Georgia, and has become a favorite soul food for many. Truett had worked in restaurants seven times a week and knew the importance of rest. That’s why he vowed to close Chick-fil-A every Sunday. He values rest and worship, so he sets aside one day of the week for his employees—a practice that Chick-fil-A still upholds today. 

Chick-fil-A also selects franchisees that uphold their values and passion. The company takes great care in selecting who they do business with, which includes getting to know candidates through a lengthy and intensive selection process. The founder’s vision is to influence the people and communities they serve. Chick-fil-A also seeks franchise candidates in Puerto Rico, Canada, and the United States. 

Chick-Fil-A candidates are required to show personal financial integrity and stewardship. They also need to have proven experience in leadership and a strong business acumen. Chick-fil-A ensures that candidates showcase entrepreneurial spirit, a strong character, and a growth mindset. This is to uphold the vision and values that Truett started in 1946. 

Franchise Training Details

  • The initial on-site training programs last three to four weeks. However, the duration and actual location of the training will vary. 
  • The training program primarily covers operational aspects, such as food preparation, service, customer relations, accounting, communications, purchasing, planning, maintenance, policies, management styles, and marketing. 
  • The franchisor may require franchisees to attend various conferences and seminars occasionally. This is on top of the initial training program.
  • The franchisor may also offer various programs that operators can use in advertising products or hiring staff, which aren’t stipulated in the Franchise Agreement. 

Franchise Territory

chick-fil-a logo
  • The franchisor will grant franchisees one Chick-fil-A restaurant at the franchisor’s designated location. 
  • Franchisees will not get exclusive or protected territory, so they may face competition from other operators. 

Franchise Obligations and Conditions

  • Franchisees must devote their time and effort 100% to operating their Chick-fil-A restaurant. 
  • The franchisor only allows franchisees to sell products approved by Chick-fil-A. This also applies to franchisees with a Chick-fil-A-associated food truck. 

Franchise Term and Renewal

The franchise term expires on early December 31, the year the agreement is signed or whatever the lease expiration is. Franchisees may apply for one-year extensions unless written notice is given 30 days before the franchise term expires. 

Financial Assistance

  • The franchisor designates locations, leases, and subleases the store’s premises to franchisees. The lease and sublease terms will vary depending on the type of Chick-fil-A restaurant and location. 
  • The franchisor also engages in concession agreements that oversee the utilization of non-traditional satellite unit locations with the proprietors or administrators of said satellite unit spaces.
  • The franchisor offers extended payment periods for specific pre-opening costs stipulated in the Franchise Agreement. Additionally, the franchisor leases equipment to operators, charging a monthly rental fee based on the fair market rental value established by Chick-fil-A using its singular and exclusive business judgment. It’s important to note that neither the franchisor nor any affiliated entities provide any financing arrangements to operators, either directly or indirectly.

Did You Know?

Here are some fun facts about Chick-fil-A you need to know!

  • Did you know that Chick-fil-A only uses peanut oil for frying? That’s what makes the chicken its unique flavor! Chick-fil-A is also the single most significant purchaser of peanut oil in the United States. They also believe peanut oil is a healthier option.
  • The best Chick-fil-A promotional gig was the “First 100,” where the first 100 customers inside a new Chick-fil-A restaurant would get free chicken for a year. 
  • Did you know that the founder, Truett Cathy, invented the chicken sandwich? He worked for a restaurant in Atlanta, and the newly delivered chicken breasts were too big to serve as airline food. He turned this into a meal for the staff. 
  • You can get a free ice cream cone by walking up to the counter and trading your toy when ordering the kid’s meal. 

Franchise Cost

Your Investment

Name of FeeLowHigh
Initial Franchise Fee$10,000$10,000
Opening Inventory$13,500$140,000
First Month’s Rental of Equipment$750$5,000
First Month’s Lease/Sublease of Premises$2,550$85,500
First Month’s Insurance Expense$240$12,000
Additional Funds$491,345$2,550,935
ESTIMATED TOTAL$518,385$2,803,435

Other Fees

Type of FeeAmount
AdvertisingMay vary (a) between 0% to 3.25%, to be determined by Chick-fil-A, as a percentage of gross receipts or (b) by vote of operators in local or regional areas.
Advertising Support and Services Fee Advertising support and services fees incurred, if any, will vary based upon the support and services offered by the franchisor, and selected and received by the operator; the current in-house blended hourly rate for services is $100; Operator will pay any additional fees, costs and expenses as applicable. 
Additional Franchise Fee$5,000 for each additional Chick-fil-A restaurant business.
Business Services Fee$300 (monthly).
Rent (Traditional Restaurant)$2,550 to $85,500 (including where applicable, percentage rent).
Occupancy Charge (Satellite Unit) Determined under the concession agreement attached as an exhibit to the concession sublicense agreement; currently estimated to range between 4% and 30% of gross receipts.
Food Truck Usage Fee (Food Truck) Currently $2,100 to $3,100, plus additional fees, costs and expenses.
Food Truck Insurance Fee (Food Truck) Currently $250 to $450 (monthly).
Insurance$240 to $12,000 (monthly).
Equipment RentalCurrently $750 to $5,000 (monthly).
Hardware and Software Support; High-Speed Internet Access$9,500 to $20,000 (annually).
Fines – Minimum Standards and ProceduresWill vary under the circumstances.
IndemnificationWill vary under the circumstances.
Operating Service ChargesDetermined by formula.
Credit Cards Fees and Related Processing FeesWill vary.
Highway SignageWill vary under circumstances.
Interest on Late PaymentsThe maximum rate permitted by law, or if none, 1.25% per month.
Cash Handling System Services$85 to $450 (monthly)
Reimbursement of Cost of PerformanceCosts and expenses of performance.
Holdover Liquidated DamagesDouble the base rent and percentage rent.

Here are the Chick-fil-A franchise costs:

If you’re looking for another investment opportunity, visit Franchise How’s website for more information. 

Continue Reading

How To's

Zoom Sewer and Drain Cleaning Franchise Cost

Published

on

Taking care of your home’s plumbing system is an essential part of being a homeowner. However, not everyone has the skill and patience to do it, and so franchises such as Zoom Sewer and Drain Cleaning are some of the most lucrative. Here’s what you need to know if you’re thinking of getting it:

Franchise Description

Zoom Sewer and Drain Cleaning provides drain cleaning, maintenance, sewer inspections, repair and replacement services for residential and commercial customers. The business began in 1995 and had been franchising since 2013. They have their headquarters in Norristown, Pennsylvania, and Zoom Franchise Company, LLC is the franchisor.

Training

Training for the franchisee’s principal owner and personnel will be provided by the franchisor or its representatives and agents. Before starting your franchise, Zoom Sewer and Drain Cleaning will require you to complete their training program. It comes in two phases:

  • Phase 1: 2 to 3 days training at the Franchise Business
  • Phase2: 2 to 3 days in Norristown, PA

The franchisor may also require you to attend additional training during the length of your term agreement. The franchisor is planning to hold a 2 to 3-day national Zoom Fest yearly. This will be held in Norristown, PA, or any location it designates. They will require franchisees to attend, but their managers will be welcome.

Territory

The franchisor will designate a protected territory where the franchisees will operate their business. Before signing any Franchise Agreement, both the franchisor and the franchisee will agree on a geographic territory. 

The franchisor will base the protected territory on contiguous zip codes that will consist of approximately 500,000 individuals. This will be based on the most recent U.S. Census data at the time of signing the franchise agreement. This means that as long as the deal is taking effect, the franchisor or its affiliates will not locate, operate, or grant a franchise for another Zoom Sewer and Drain Cleaning business within the protected territory.

Obligations

The franchisor requires the franchisee or its principal owner to exert every effort to take responsibility for the management of the business. They will do this on a daily basis unless they agree on an alternate arrangement. With the franchisor’s discretion, the franchisee can hire a manager to handle the operations of the business.

Franchisors will also require you to sell products and services that have their approval. On the other hand, franchisees aren’t allowed to sell unauthorized products or services in compliance with the franchise agreement. Franchisees are also not allowed to solicit business outside of the protected territory. They are, however, permitted to serve customers outside of the protected territory as written in the FDD.

Term of Agreement

The initial franchise will take ten years after the signing of the agreement. You can renew the contract for another ten years, for four times, if you continue to meet the requirements.

Financial Assistance

Zoom Sewer and Drain Cleaning doesn’t offer direct or indirect financial assistance to its franchisees. In addition, they will not guarantee a franchisee’s note, lease, or obligation.

Did You Know?

Get to know more about Zoom Sewer and Drain Cleaning before you get that franchise. Here are some facts about the business:

  • They have very little competition in the niche. Most of their competitors are independent plumbers and contractors
  • According to the company’s co-founder and COO, Ellen Rohr, this is a recession-resistant business, and the Covid-19 pandemic has proven this
  • They have a reported $12 million in revenue with 53 employees and 15 franchisees 

Your Investment

The table below shows the estimated cost of a Zoom Sewer and Drain Cleaning franchise. Take note that these numbers may change without any prior notice.

Name of FeeLowHigh
Initial Franchise Fee$35,000$35,000
Lease$3,000$9,000
Leasehold Improvement$2,000$40,000
Furniture, Fixtures and Computer System$7,500$13,000
Vehicles$7,000$9,500
Vehicle Wrap and Design$4,500$5,500
Initial Equipment and Inventory of Supplies$40,000$50,000
Business Licenses and Permits; Deposits and Pre-Paid Expenses$0$5,000
Professional Fees$500$3,000
Insurance – Quarterly$4,000$6,000
Initial Training Expenses$500$3,000
Initial Marketing Expenses$45,000$60,000
Additional Funds – 6 months$50,000$100,000
ESTIMATED TOTAL$199,000$341,000

Other Costs

Type of FeeAmount
Royalty Fee5% of Net Sales.
Marketing FeeUp to 2% of Net Sales. Currently, the franchisor does not charge this fee.
Call Center FeeUp to $25 per scheduled appointment. Currently, the franchisor does not operate the Call Center or charge a Call Center Fee.
Technology Fee The then-current Technology Fee; currently $500 per month. 
Webpage Development and Optimization Fee The then-current fee charged by the franchisor’s designated website SEO provider; currently $695 per month. 
Additional Location Fee The then-current Additional Location Fee; currently $2,000. 
Transfer FeeUp to 50% of the then-current Initial Franchise Fee.
Renewal FeeUp to 25% of the then-current Initial Franchise Fee.
Additional Training and AssistanceFee and all expenses. Currently $1,000 per day plus travel expenses.
National Conference Reasonable fees and all expenses. 
Testing for Supplier ApprovalReasonable fee.
Interest on Late PaymentsLesser of 1.5% per month or maximum legal rate.
Audit FeeCost of audit.
TaxesActual cost.
IndemnificationWill vary under circumstances.
Costs and Attorneys’ FeesWill vary under circumstances.

For other franchising information, check out more articles here at Franchise How!

Continue Reading

Trending