Wendy's
Date of Incorporation: 1969
Franchising Since: 1972
Address: Dublin, Ohio
Business Description: Wendy's grants franchises for the operation of a distinctive style of quick-service restaurant. Wendy's, along with some of its affiliates, also owns and operates Wendy's Restaurants and on occasion leases and sells Wendy's Restaurants as well as other real estate interests owned by Wendy's and its affiliates.
Franchise Offer: The franchisee will operate a quick-service restaurant which offers a limited menu of prepared to order food, including hamburgers, chicken sandwiches and complementary items.
Financial Assistance: On occasion, Wendy's cooperates with various lenders in the lenders' efforts to provide financing to qualified franchisees for various purposes. Wendy's may in certain specific situations offer its own leasing programs to new or existing franchisees who are in full compliance with their obligations to Wendy's. The financing programs which Wendy's may offer include: the leasing of company owned restaurants, and other direct and indirect financing.
Training and Assistance: Before the opening of the Restaurant, the franchisee (or, if the franchisee is a corporation, partnership, or other business entity, the Operator for the Restaurant as previously approved by Wendy's) and the initial management employees and Restaurant crew must attend and complete, to Wendy's satisfaction, an initial training program. At Wendy's option, any management persons later employed by the franchisee must also attend and complete Wendy's training program, to Wendy's satisfaction. The franchisee and management employees involved in the operation of the Restaurant must also attend additional courses, seminars, and other training programs as Wendy's may reasonably require. Wendy's will be responsible for the cost of materials and instructors for the initial training program for the franchisee or the Operator only, if the Restaurant is the franchisee’s first Restaurant operating in the System. A typical initial training program will be approximately 20-24 weeks in duration and will include both classroom and on-the-job training.
Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other Wendy's franchisees, from company-owned Wendy's Restaurants, or from other channels of distribution or competitive brands owned by affiliates of Wendy's.
Term of Agreement and Renewal: The length of the franchise term is 20 years. The renewal term is for 10 years, if the franchisee is in good standing and complies with renewal conditions.
Obligations and Restrictions: Wendy's strongly recommends that the franchisee participate personally in the actual operation of the Wendy's Restaurant. If the franchisee (or the managing and controlling partner or shareholder, if the franchisee is a partnership, corporation or other business entity) elect not to participate in the Wendy's Restaurant's day-to-day operations, an individual "Operator" must be designated to supervise the Wendy's Restaurant's operation at all times. Wendy's may regulate, among other things the real estate (whether purchased or leased), the type, model and brands of required fixtures, furnishings, equipment, signs, materials and supplies to be used in operating the franchisee’s Wendy's Restaurant, required or authorized products and product categories and the approved suppliers of each item. In addition, the franchisee must adhere to the standards and specifications established by Wendy's which may impose minimum requirements for delivery, performance, quality, safety and cost.
Total Number of Units: 6,541 units
Investment Tables:
Initial Investment:
| Type of Fee | Low | High |
|---|---|---|
| Application Fee | $5,000 | $5,000 |
| Training Expenses | $26,000 | $100,000 |
| Initial Technical Assistance Fee | $25,000 | $25,000 |
| Real Estate, Permits, Construction of Standard Prototype Restaurant and Site Improvements: Cash Purchase Financing (3 mos.) Leasing (3 mos.) |
$915,000 $217,500 $19,500 |
$1,630,000 $377,500 $35,000 |
| Equipment and Signage: Cash Purchase Financing (3 mos.) Leasing (3 mos.) |
$305,000 $15,000 N/A |
$375,000 $518,500 N/A |
| Opening Inventory and Supplies | $5,000 | $10,000 |
| Additional Funds - 3 Months | $125,000 | $200,000 |
| Grand Opening Advertising | $5,000 | $8,500 |
| Security Deposit, Utilities, Licenses and Other Prepaid Expenses | $20,000 | $65,000 |
| Insurance Cost | $10,000 | $35,000 |
| ESTIMATED TOTAL: If you pay cash for Land, Building, Improvements, Equipment and Signage If you finance the Land, Building, Improvements, Equipment and Signage If you lease the Land, Building, Improvements, Equipment and Signage |
$1,441,000 $453,500 $255,500 |
$2,453,500 $844,500 $502,000 |
Ongoing Fees:
| Type of Fee | Amount |
|---|---|
| Royalty | Greater of 4% of Gross Sales or $1,000 per month |
| National Advertising | 2% of Gross Sales. |
| Local and Regional Advertising | 2% of Gross Sales. |
| Additional Training | Will vary under circumstances. |
| Transfer | $5,000 |
| Renewal | An amount which is not greater than 25% of the then-current Technical Assistance Fee. |
| Audit | Costs and expenses of audit, including travel, lodging, wages, accounting and legal costs, and interest on any understated amount. |
| Late Fee/Interest | $100 plus interest on the overdue amount from the date it was due until paid, at the (i) rate determined by Wendy's, or (ii) maximum legal rate, whichever is less |
| Costs and Attorney's Fees | Will vary |
| Indemnification | Will vary |
| Review of Proposed Offering Materials of Franchisee | $10,000 or a greater amount necessary to reimburse Wendy's for its legal, accounting, and other costs. |
Date of FDD: 2010
The above information has been compiled from the FDD of Wendy’s along with online sources.
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