Bottom line
- Total investment $259K – $912K including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.8M/year (median $1.7M).
- Rated STRONG with a risk score of 26/100. SBA loan default rate of 0.0% across 505 loans (below the industry average).
- System growing at 2530% CAGR over 3 years with 1926 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Wingstop unit return on the cash you put in?
Unlevered ROIC · per unit
34%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Wingstop units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.5M purchase
Total debt
$6.8M
SBA $4.3M + senior + seller note
Overview
About
Franchisees operate quick-service chicken wing restaurants focused on delivery, carryout, and dine-in service. Day-to-day operations involve food preparation, order fulfillment, inventory management, and staff supervision while adhering to Wingstop's operational standards and development milestones.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Wingstop presents moderate risk with strong unit growth and brand momentum offset by missing profitability disclosure, aggressive franchisor enforcement practices, and lack of transparency on net income sustainability.
Score breakdown · what drove the 26 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to validate profitability claims against $1.8M average revenue
- 02MINORHigh unit growth (11.9% YoY) may indicate aggressive expansion masking unit-level performance issues
- 03HIGHLitigation history demonstrates Wingstop's willingness to enforce strict development obligations and strip territorial rights
- 04MINORWide investment range ($259K–$912K) suggests significant variability in unit economics and setup costs
- 05MINOR6% royalty on gross sales (not net) creates cash flow pressure during slow periods
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Wingstop · FDD (2024) PDF