Wingstop Franchising LLC

Your ad fund rate of 5.5% is above the typical range of 2.0-4.0% for quick service restaurants. How is this fund allocated and audited, and have franchisees requested reduced rates or alternative marketing arrangements?

Your technology fee of $50/month is substantially lower than the typical range of $110-$408. Is this fee guaranteed to remain at this level, or does the franchise agreement allow for increases? What systems and services are covered?

You have 1 pending litigation case initiated by Wingstop. Can you provide details about the nature of this dispute, the parties involved, and the expected timeline for resolution?

Your 3-year turnover rate of 0.5% is significantly lower than the typical range of 0.9-15.5%. To what do you attribute this exceptional retention rate, and are there selection criteria or support programs that differentiate Wingstop from competitors?

Net unit growth of 14.4% in the past year far exceeds typical growth rates. What percentage of this growth comes from new unit sales versus transfers of existing units, and how does this ratio compare to your historical averages?

Your median gross sales of $2,011,985 substantially exceed the typical range. Can you clarify the units reporting sample size, the time period covered (calendar vs. fiscal year), and whether this includes company-operated units or franchise units only?

The franchise agreement includes 13 types of non-curable defaults. Can you provide specific examples of violations that would trigger immediate termination without opportunity to cure?

Your non-compete clause applies to the franchisee's DMA plus any DMA where Wingstop exists or is under development. Given your current unit count and expansion plans, how many DMAs would this realistically restrict a departing franchisee from competing in?

Disputes must be resolved through binding arbitration in Dallas, Texas. What are the typical costs and timeframes franchisees should expect for dispute resolution, and can you provide examples of disputes arbitrated in the past 3 years?

Franchisees must purchase from 8 categories of approved designated sources exclusively. How much flexibility exists in sourcing decisions, and what happens if a franchisee identifies lower-cost suppliers that meet quality standards?

The franchise agreement requires remodeling to new specifications as a condition of renewal. What is the typical cost of a required remodel, how frequently are remodels mandated, and are there financing options available?

You've had 117 unit transfers in 2022, 132 in 2023, and 90 in 2024. What percentage of these transfers are to new franchisees versus existing multi-unit franchisees, and what is the failure rate for transferred units in their first year?

Zero terminations have occurred over 3 years. Are there franchisees currently operating in violation of agreement terms, and if so, what is your remediation timeline before considering termination?

Your renewal fee of $25,000 equals your initial franchise fee. Does this include remodeling costs, training costs, updated technology systems, or is this purely an administrative renewal fee?

The agreement allows franchisor to specify maximum and minimum prices. How frequently are price mandates issued, how much variation exists between top and bottom performing units, and can franchisees request exceptions for their local market conditions?

Transfer fees are $15,000. If a franchisee needs to exit the business and sell to a qualified buyer, what is the expected timeline and approval process, and have any qualified buyers been rejected in the past 3 years?

Of the 4 units closed in 2022 and 1 in 2023, how many were due to poor financial performance, market conditions, franchisee personal circumstances, or franchisor-directed closure recommendations?

Your System Health score of 95/100 is above typical range. What specific metrics contribute to this score, and do these align with franchisee satisfaction surveys and net promoter scores?

Given the low turnover rate and high sales performance, have any existing franchisees expressed difficulty expanding within their protected territory, and what is the typical territory size in terms of population and annual revenue potential?

The personal guarantee clause requires each controlling principal to guarantee all obligations. If one principal guarantees the agreement and subsequently divorces or becomes incapacitated, does the guarantee remain in effect?