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Wingate Franchise ProfileRestaurant Franchises > Full-Service Restaurants |
What Are the Initial Investment Requirements for a Wingate Franchise?
To open a Wingate franchise, you should prepare for a significant initial investment, which ranges from $335,864 to $12,546,538. This includes a franchise fee of $36,000, along with additional costs for equipment, inventory, and real estate. It's essential to have cash readily available, with a requirement ranging from $335,864 to $4,292,826, and a net worth of $500,000 to $1,000,000 to qualify for ownership. Understanding these financial commitments is crucial for aspiring franchisees.
What Are the Ongoing Fees for a Wingate Franchise?
Wingate franchisees are responsible for ongoing fees that include a royalty fee of 4.5% on gross revenue and a marketing fee of 4%. These fees contribute to the brand's national marketing efforts and support services, helping franchisees attract and retain customers. It's important to factor these ongoing costs into your financial planning to ensure long-term profitability and sustainability.
What Is the Average Revenue Potential for a Wingate Franchise?
The average annual revenue for a Wingate franchise unit is approximately $1,565,000, with a median annual revenue of $56,740. However, revenue can vary significantly, with the lowest annual revenue reported at $19,000 and the highest at $1,492,000. This range highlights the importance of location, management, and market demand in determining the financial success of a franchise unit.
How Long Does It Take to Break Even with a Wingate Franchise?
Franchisees can expect to reach the breakeven point in about 18 months, with an investment payback period of approximately 36 months. Understanding these timelines is critical for financial planning, as they provide insight into when you can expect to start seeing a return on your initial investment. This information can help you gauge the potential risk and reward associated with owning a Wingate franchise.
Wingate Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Wingate Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Units | 154 | 169 | 160 |
| Net Change YoY | 15 | -9 | |
| Franchised Units | 154 | 169 | 160 |
| Net Change YoY | 15 | -9 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Investment Overview
The Wingate franchise offers a range of initial investment costs, with a low of $335,864 and a high of $12,546,538. The initial franchise fee is set at $36,000, and franchisees can expect a royalty fee of 4.5% on gross sales, along with a 4% marketing fee. To qualify, potential franchisees need a minimum cash requirement between $335,864 and $4,292,826 and a net worth of $500,000 to $1,000,000.
Financial Performance
On average, each Wingate unit generates an annual revenue of approximately $1,099,000, with a median revenue of $56,740. The revenue range varies significantly, from a low of $19,000 to a high of $1,492,000. The breakeven time for new franchisees is estimated at 18 months, while full investment payback typically occurs within 36 months.
Franchise Growth
Wingate has shown consistent growth in franchised units over the years, with 154 units in 2019, increasing to 169 in 2020, and slightly decreasing to 160 in 2021. Notably, there are no corporate-owned units, indicating a strong focus on franchising as the primary growth model for the brand.
Operating Expenses
The average operating expenses for a Wingate franchise are around $799,000 annually, accounting for 51% of the total revenue. Key components of these expenses include marketing, reservation, and loyalty programs at $450,000, general and administrative costs at $113,000, and miscellaneous expenses totaling $320,000.
Profitability Metrics
Wingate franchises boast a gross profit margin of 79.6%, with an EBITDA of approximately $590,000, representing 37.7% of revenue. Cost of goods sold (COGS) averages around $320,000, making up 20.4% of total revenue. These metrics indicate a healthy profitability potential for franchisees.
Franchise Support
Wingate provides comprehensive support to its franchisees, including training programs, marketing assistance, and operational guidance. This support is designed to help franchisees navigate the challenges of running a successful business, ensuring they have the tools and resources necessary to thrive in the competitive hospitality industry.
Frequently Asked Questions
The initial investment for a Wingate franchise ranges from approximately $335,864 to $12,546,538, depending on various factors such as location and size.