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Buffalo Wild Wings Franchise ProfileFood Franchises > Casual Dining |
What is the Initial Investment for a Buffalo Wild Wings Franchise?
Starting a Buffalo Wild Wings franchise requires a significant financial commitment. The initial investment ranges from $2,443,345 to $4,830,320, which includes a franchise fee of $25,000. Additionally, potential franchisees should have liquid cash available between $100,000 and $150,000 and a net worth of $500,000 to $1,000,000 to qualify for the franchise. Understanding these costs is crucial for aspiring entrepreneurs considering this popular sports bar and restaurant concept.
What are the Financial Performance Metrics of Buffalo Wild Wings?
Buffalo Wild Wings franchises can expect robust financial performance, with an average annual revenue of $3,455,211 per unit. The median annual revenue is slightly lower at $3,326,377, while the range varies from a low of $1,258,636 to a high of $8,907,820. With a breakeven time of just 12 months and an investment payback period of 29 months, the brand presents a compelling opportunity for those looking to enter the restaurant industry.
What Are the Ongoing Fees Associated with a Buffalo Wild Wings Franchise?
Franchisees of Buffalo Wild Wings must be prepared for ongoing financial obligations. This includes a royalty fee of 5% on gross sales and a marketing fee of 3.75%. These fees are essential for maintaining brand standards and supporting marketing efforts, which can drive customer traffic and revenue growth. Understanding these ongoing costs is vital for managing cash flow and ensuring long-term profitability.
How Many Buffalo Wild Wings Units Are There?
As of 2023, there are a total of 1,192 Buffalo Wild Wings units, consisting of 533 franchised locations and 659 company-owned units. The number of franchised units has seen slight fluctuations over the years, with 526 in 2022 and 530 in 2021. This growth trajectory indicates a stable interest in the franchise model, making it an attractive option for potential investors looking to join a well-established brand in the casual dining sector.
Buffalo Wild Wings 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:
Buffalo Wild Wings Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 1203 | 1188 | 1192 |
| Net Change YoY | -15 | 4 | |
| Franchised Units | 530 | 526 | 533 |
| Net Change YoY | -4 | 7 | |
| Corporate Units | 673 | 662 | 659 |
| Net Change YoY | -11 | -3 |
Investment Overview
Buffalo Wild Wings offers a significant investment opportunity for aspiring franchisees, with an initial investment ranging from $2,443,345 to $4,830,320. The franchise fee is set at $25,000, alongside ongoing royalty and marketing fees of 5% and 3.75% of gross sales, respectively. Interested investors should be prepared with a cash requirement of $100,000 to $150,000 and a net worth between $500,000 and $1,000,000 to qualify for ownership.
Financial Performance
Buffalo Wild Wings franchises demonstrate strong financial potential, with average annual revenue per unit reported at $3,455,211. The median annual revenue stands at $3,326,377, while the revenue range varies significantly, from a low of $1,258,636 to a high of $8,907,820. The breakeven period for new units is approximately 12 months, with an investment payback period of about 29 months, indicating a solid return on investment potential.
Operational Expenses
Franchisees should be aware of the operational expenses associated with running a Buffalo Wild Wings unit. Key costs include rent, which can range from $7,500 to $40,000 annually, and management salaries estimated between $100,000 and $150,000. Additional expenses such as professional fees, insurance, and marketing costs contribute to the overall operational budget, emphasizing the need for careful financial planning.
Franchise Growth
The Buffalo Wild Wings franchise has shown steady growth in its unit count, with 530 franchised units in 2021, slightly decreasing to 526 in 2022, and then increasing to 533 in 2023. The total number of units, including corporate locations, remains robust, indicating a resilient brand presence in the competitive restaurant industry.
Corporate Structure
Buffalo Wild Wings, Inc. operates as a subsidiary of Inspire Brands, a multi-brand restaurant company. The corporate headquarters are located in Minneapolis, Minnesota. As part of a larger organization, Buffalo Wild Wings benefits from shared resources and strategic support, enhancing its operational efficiency and market reach.
Marketing Strategy
Buffalo Wild Wings employs a strategic marketing approach that includes a mandatory marketing fee of 3.75% of gross sales. Franchisees are encouraged to engage in local advertising initiatives, which can vary in contribution based on local co-op agreements. This dual marketing strategy aims to enhance brand visibility while driving customer engagement at the local level, ensuring franchisees can effectively compete in their markets.
Frequently Asked Questions
The initial investment for a Buffalo Wild Wings franchise ranges from approximately $2,443,345 to $4,830,320, which includes the franchise fee and other startup costs.