Verified — real FDD extraction
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WING-STOP
Food & Dining · independent · est. —
Wingstop is a quick-service restaurant chain specializing in cooked-to-order chicken wings in a range of signature flavors, with fries and sides. A franchisee operates a small-footprint storefront oriented heavily toward takeout and delivery.
WING-STOP net unit count grew +34.3% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: the system is growing.
Exit rate · latest year
0.2%
vs 8.6% across 137 food & dining systems
Cost to open
$310K–$1.0M
Item 7 total investment range
SBA loan defaults
No loan record
no SBA 7(a)/504 loans found for this brand
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 4 of 2,154 franchised outlets left the system — a 0.2% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 1,721 | 1,926 | 2,204 |
| Opened | 203 | 281 | 384 |
| Transfers | 132 | 90 | 52 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 3 | 4 | 5 |
| Ceased — other reasons | 1 | 0 | 4 |
| Outlets at end | 1,926 | 2,204 | 2,586 |
| Net change | +205 | +278 | +382 |
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $25K franchise fee (Item 5) and a total investment of $310K–$1.0M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$310K–$1.0M
all-in investment range
Franchise fee (Item 5)
$25K
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$60K
6% of sales, before profit
Over a 10-yr term
$600K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for WING-STOP with an independent CPALabor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 30 wage cases against operators of this system, recovering $151K in back wages for 244 workers, including 4 child-labor cases. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
30
Back wages owed
$151K
Employees affected
244
Since 2020
3
4 of these cases involved child-labor violations, covering 61 minors across the system's franchised locations.
Read this carefully. The employers in these cases are individual WING-STOP franchisees — separately owned businesses operating under the brand name — not WING-STOP itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2023.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for WING-STOP. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing WING-STOP's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →WING-STOP franchise questions, answered from the filings
What percentage of WING-STOP franchises closed last year?
In WING-STOP's latest FDD Item 20 (fiscal 2025), 4 of 2,154 franchised outlets left the system — an annualized exit rate of 0.2% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a WING-STOP franchise cost?
Per WING-STOP's 2026 FDD, buying in requires an initial franchise fee of $25K (Item 5) and a total initial investment of $310K–$1.0M (Item 7).
What royalty does WING-STOP charge?
WING-STOP charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2026 FDD.
Does WING-STOP disclose earnings (Item 19)?
Yes — WING-STOP makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $1.9M. Read it closely: franchisors choose which units and which metrics to include.