Wingstop Restaurants

The pending litigation case involving the franchisor as plaintiff was initiated in 2024 or earlier—what is the nature of this case and what is its current status?

Your ad fund rate of 5.5% is above the typical range of 2.0-4.0% for QSR franchises. How is this ad fund deployed, and can you provide a breakdown of spending by channel and region for the past 2 years?

Your technology fee of $100 monthly is notably lower than the typical range of $110-$408. What specific technology platforms and services are included in this fee, and are there any planned increases or additional technology-related costs?

Average unit volumes of $2.1 million significantly exceed the typical range for QSR franchises. Can you break down which franchisees achieve these volumes and which fall below, and what are the key performance drivers (unit size, dayparts, pricing, location type)?

Your system achieved 12.8% 3-year CAGR and 14.4% 1-year unit growth, well above typical ranges. How many of these new units are company-owned versus franchised, and what is your target growth rate going forward?

The franchise agreement includes 17 non-curable defaults that could result in immediate termination. Can you provide specific examples of non-curable defaults and the circumstances under which the franchisor has enforced them?

Mandatory binding arbitration in Dallas, Texas is required for dispute resolution. What is the typical cost and timeline for arbitration, and has the franchisor pursued arbitration in prior franchise disputes?

Personal guarantees are required from each controlling principal. Are these guarantees limited to franchise-related obligations only, or do they extend to guarantees of corporate parent obligations?

You require exclusive purchases of 8 categories of proprietary materials from approved sources. What is the franchisor's markup or profit margin on these materials, and are there any competitive alternatives franchisees can use?

The agreement allows the franchisor to specify maximum, minimum, and other prices for products and services. How often have pricing controls been implemented, and have they ever restricted franchisees' pricing flexibility or profit margins?

No minimum performance requirements are specified in the agreement. Under what circumstances would the franchisor consider a franchisee underperforming, and what remedies or interventions would be triggered?

Past-due obligations accrue interest at the highest commercial contract interest rate permitted by law. What is the current interest rate applied to late fees, and how frequently have franchisees been assessed late fees?

The transfer fee is $15,000 and transfer rate is 4.0%. In the past 3 years, how many transfer requests have been denied or conditioned, and what are the criteria for transfer approval?

The renewal fee equals the initial franchise fee ($25,000). What percentage of franchisees choose to renew versus exit at the end of their initial 10-year term?

Your system shows a zero termination rate. Has the franchisor ever terminated a franchise agreement, and if so, what were the circumstances and outcomes?

Only 1 litigation case in 3 years suggests low dispute activity. Can you explain the types of disputes that have arisen and how they were resolved (or if pending, their expected resolution timeline)?

What training and support are provided at franchise inception and ongoing, given your 100/100 support & training score?

The non-compete is 2 years with no specified mileage radius. How is the geographic scope of the non-compete enforced in practice, and have there been any disputes over non-compete violations?

Item 19 financial performance data is available—does this include only franchises open for 2+ full years, and what percentage of your system franchisees meet or exceed the stated median and average volumes?

Are there any off-premises sales channels (delivery, ghost kitchens, catering) included in the reported gross sales figures, and how much have these channels contributed to unit-level growth?