Buffalo Wild Wings Franchise in 2024: Costs, Fee & FDD
Explore the ins and outs of investing in a Buffalo Wild Wings franchise, including key costs, earning potential, and the steps to ownership. Discover why this popular sports bar could be a winning investment for you.
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Buffalo Wild Wings, affectionately known as “B-Dubs,” was founded in 1982 by Jim Disbrow and Scott Lowery in Columbus, Ohio. The duo, craving authentic Buffalo-style wings, set out to create a restaurant that not only satisfied their taste buds but also became a haven for sports enthusiasts. Over the years, Buffalo Wild Wings has grown from a single location into one of the most recognized names in the casual dining sector, particularly known for its vibrant atmosphere that combines great food with the excitement of live sports.
The franchise’s core offering is, of course, its wings—available in a variety of sauces and dry rubs that cater to every palate. Beyond wings, the menu features a wide range of options, including burgers, sandwiches, salads, and more, ensuring there’s something for everyone. Buffalo Wild Wings has built its reputation on being the go-to spot for sports fans, with large-screen TVs broadcasting major games and events, making it a popular destination for group outings and casual hangouts.
As of today, Buffalo Wild Wings operates over 1000 locations across the United States and has expanded its presence internationally in countries like Canada, Mexico, and the Philippines. The franchise serves millions of customers daily, capitalizing on the global love for sports and casual dining. With such a vast network, B-Dubs has cemented its position as a leader in the full-service restaurant industry, known for creating a lively and engaging environment for its patrons.
Buffalo Wild Wings offers a comprehensive franchise support system designed to help franchisees succeed. This includes extensive training programs that cover everything from restaurant operations to marketing strategies. Franchisees also benefit from ongoing support in areas such as site selection, design, and construction, as well as access to a robust supply chain and marketing resources. With its proven business model and strong brand recognition, Buffalo Wild Wings provides a solid foundation for franchisees looking to enter the full-service restaurant industry.
Buffalo Wild Wings Franchise Insights
- On average, Buffalo Wild Wings locations have around 50 large-screen TVs, making it one of the top destinations for sports enthusiasts across the country.
- The franchise’s loyalty program, Blazin’ Rewards, boasts over 10 million members, highlighting its effective customer retention and engagement strategies.
- Buffalo Wild Wings operates in over 10 countries, reflecting its successful international expansion and appeal to global markets.
- The Buffalo Wild Wings “GO” concept is a smaller, takeout-focused model that caters to the growing demand for quick and convenient dining, offering a streamlined menu with lower overhead costs and a faster path to profitability.
Buffalo Wild Wings Franchise Key indicators
Unit Growth YOY (%)
1%
vs industry 0%
Total U.S. Franchised Units
533
3-Year Failure Rate
5%
vs industry 10%
Sales-to-Investment ratio
0.9:1
How much does it cost to open a Buffalo Wild Wings franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Buffalo Wild Wings franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Buffalo Wild Wings franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Buffalo Wild Wings below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Fees related to site approval | $1,200 | $53,800 |
| Initial franchise fee | $12,500 | $25,000 |
| Reimbursement of expenses and training | $0 | $80,000 |
| Architecture fees | $90,000 | $160,000 |
| Construction and leasehold improvements | $1,200,000 | $2,100,000 |
| Furniture, fixtures, equipment, etc. | $570,000 | $925,000 |
| Audio/Visual equipment | $275,000 | $425,000 |
| Computer POS system | $28,245 | $50,520 |
| Office equipment and supplies | $6,000 | $13,000 |
| Sports memorabilia | $12,500 | $26,500 |
| Signage and graphics | $43,000 | $100,000 |
| Training expenses | $8,000 | $12,000 |
| Initial inventory | $15,000 | $19,000 |
| Insurance | $14,400 | $48,000 |
| Additional funds (3 months) | $100,000 | $150,000 |
| Rent | $7,500 | $40,000 |
| Lease and utility security deposits | $10,000 | $20,000 |
| Grand opening advertising | $12,500 | $12,500 |
| Liquor license | $5,000 | $500,000 |
| Professional fees | $20,000 | $70,000 |
| Total Estimated Initial Investment | $2,875,845 | $4,830,320 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Buffalo Wild Wings franchise, the required capital, liquid assets, and net worth typically fall within a broad range, depending on the specific location and market conditions. For Buffalo Wild Wings, or similar franchises in the full-service restaurant industry, you can expect:
- Initial Investment The total investment required is generally estimated between $2.88 million and $4.8 million. This range accounts for factors like real estate, construction, equipment, and initial inventory. Assuming you can obtain financing, you should plan to invest 20% of the total investment in the form of equity (cash).
- Liquid Assets Franchisees are usually expected to have at least $750,000 to $1 million in liquid assets. This ensures they have the necessary cash flow to cover startup costs and initial operational expenses.
- Net Worth A minimum net worth requirement often ranges from $2.5 million to $3 million, which is a standard expectation in this industry to demonstrate financial stability.
These figures are estimates based on industry standards and can vary depending on the location, restaurant size, and specific franchise terms. It’s always best to consult directly with Buffalo Wild Wings or similar franchises to get the most accurate and current information.
How much does a Buffalo Wild Wings franchise owner make?
Calculating the salary of a Buffalo Wild Wings franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Buffalo Wild Wings franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Buffalo Wild Wings Revenue & Gross Sales
Based on the most recent analysis, Buffalo Wild Wings franchises have a median gross sales of $3,324,905, reflecting the brand’s strong consumer demand and its potential for substantial revenue generation in the casual dining industry. This figure highlights the franchise’s ability to consistently attract and retain customers, making it a promising investment for potential franchisees
Which key factors impact the average revenue performance of Buffalo Wild Wings franchisees?
Several factors likely contributed to the strong performance of Buffalo Wild Wings franchisee median gross sales. One significant factor is the increased consumer interest in dining out as COVID-19 restrictions eased, leading to higher foot traffic in restaurants. Additionally, the brand’s continued investment in digital and delivery platforms has made it easier for customers to access their favorite menu items, even from home, driving up overall sales. The popularity of sports, coupled with Buffalo Wild Wings’ positioning as a prime spot for game-day experiences, likely boosted sales during key sporting events. Lastly, ongoing menu innovations and promotional strategies have kept customers engaged and returning, contributing to the overall increase in gross sales compared to the prior year.
Buffalo Wild Wings Franchise Operational Costs
If you were to open a Buffalo Wild Wings franchise, some of the key ongoing operational costs to consider include:
- Labor Costs Staffing a full-service restaurant involves significant labor costs, including wages for kitchen staff, servers, and management. These expenses are particularly high during peak hours and game days when more staff is needed.
- Food and Beverage Costs The cost of ingredients, including wings, sauces, and beverages, is a major ongoing expense. Fluctuations in food prices, especially for poultry, can impact your margins.
- Utilities and Maintenance Operating a large restaurant space requires substantial utilities, including electricity, water, and gas. Regular maintenance of kitchen equipment, HVAC systems, and dining areas is also necessary to ensure smooth operations.
- Marketing and Local Advertising Beyond national ad fund contributions, local marketing efforts to attract and retain customers are essential. This includes promotions, community events, and digital marketing to drive traffic to your location.
- Technology and POS Systems Keeping your technology up-to-date, including point-of-sale systems, online ordering platforms, and loyalty programs, is crucial for efficient operations and customer satisfaction.
Understanding these costs will help you effectively plan your budget and forecast your franchise’s profitability.
Buffalo Wild Wings Franchise Fees
When opening a Buffalo Wild Wings franchise, it’s important to consider the ongoing fees associated with operating the business. Below are some of the key fees that you will encounter:
- Royalty Fee 5% of Gross Sales. This fee is paid by electronic funds transfer every Friday for the preceding Reporting Period (Monday to Sunday). There may be applicable incentive programs that could affect this rate.
- Advertising Fee 3.75% to 4% of Gross Sales, and 1.875% of Gross Sales for Non-Traditional Locations. Similar to the royalty fee, this is also paid every Friday by electronic funds transfer. The franchisor contributes at the same rate for each similarly situated company-owned location in the same marketing area.
- Additional Fees There might be other fees, such as technology fees, training fees, or local marketing fees, that could apply depending on your specific location and operational needs. These fees should be reviewed in detail to ensure comprehensive financial planning.
Buffalo Wild Wings Franchise Earnings
Owning a Buffalo Wild Wings franchise could be a strong investment, especially for owner-operators. Based on the median gross sales of $3,324,905, franchisees can see substantial earnings. For those who take an active role in managing their restaurant, the owner-operator status yields an estimated operating income of approximately $332,000 annually. This figure reflects the potential profitability of the business when managed efficiently and highlights the financial rewards of hands-on involvement.
The earnings potential is influenced by various factors, including effective cost management, staff training, and local market conditions. Owner-operators who are engaged in the day-to-day operations often have better control over expenses and can capitalize on opportunities to drive sales, thereby maximizing their earnings. With the strong brand recognition and support from Buffalo Wild Wings, franchisees are well-positioned to achieve a solid return on their investment.
How to Open a Buffalo Wild Wings Franchise
Becoming a Buffalo Wild Wings franchisee involves a detailed and structured process, ensuring that candidates are well-prepared to operate a successful restaurant. Here’s an overview of the key steps:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application If the initial conversation is positive, you will be asked to complete a formal franchise application. This includes providing detailed financial statements, proof of liquid assets, and a business plan. The application helps the franchisor assess your ability to meet the financial and operational requirements.
- Discovery Day After reviewing the FDD, you’ll be invited to attend a Discovery Day at the Buffalo Wild Wings headquarters. This event allows you to meet key members of the franchise team, learn more about the business model, and tour a company-owned restaurant. It’s a crucial step to ensure that both parties are aligned in their expectations.
- Franchise Agreement If both parties are satisfied after Discovery Day, you’ll be offered a franchise agreement. Signing this agreement formalizes your commitment to becoming a Buffalo Wild Wings franchisee. At this stage, you’ll also pay the initial franchise fee.
- Site Selection and Development Once the agreement is signed, the franchisor will assist you in selecting a suitable location for your restaurant. This involves analyzing market conditions, negotiating leases, and working with architects and contractors to develop the site according to brand standards.
- Training Before opening your restaurant, you’ll undergo an extensive training program. This includes both classroom instruction and hands-on training at a Buffalo Wild Wings location. The training covers all aspects of restaurant management, from food preparation to customer service and marketing.
- Pre-Opening Preparations As your restaurant nears completion, you’ll work on final preparations, including hiring and training staff, ordering inventory, and setting up technology systems. The franchisor provides ongoing support to ensure everything is in place for a successful launch.
- Grand Opening Once everything is ready, you’ll open your Buffalo Wild Wings restaurant to the public. The franchisor will often assist with marketing and promotional efforts to generate buzz and attract customers during the initial phase of operations.
- Ongoing Support After the grand opening, you’ll receive continuous support from the franchisor, including regular check-ins, additional training, and assistance with marketing and operational challenges. This support is designed to help you achieve long-term success as a franchisee.
Pros & Cons
Pros
Strong Brand Recognition: Buffalo Wild Wings is a well-known and established brand in the casual dining and sports bar industry, which can attract a steady stream of customers from day one.
Popular Niche Market: The combination of a sports-focused atmosphere and a diverse menu appeals to a wide customer base, particularly during major sporting events, which can lead to increased sales.
Multiple Revenue Streams: The franchise benefits from multiple revenue streams, including dine-in, takeout, and delivery services. This diversification can help stabilize revenue, even during economic downturns or shifts in consumer behavior.
Cons
High Initial Investment: The franchise requires a substantial upfront investment, ranging from $2.88 to $4.8 million, which may be a significant financial commitment depending on your resources.
Competitive Market: The casual dining and sports bar sector is highly competitive, with numerous other brands vying for the same customer base, which can affect profitability in certain markets.
Ongoing Operational Costs: Managing a full-service restaurant involves considerable ongoing costs, including labor, food supplies, and utilities, which can impact your profit margins if not carefully managed.