The Wendy's franchise requires a total investment of $1.52M – $2.99M with a 4.0% royalty fee and operates 5,552 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Wendy's.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $50,000 | $50,000 |
| Buildout | $1,033,292 | $2,200,000 |
| Equipment | $380,165 | $550,000 |
| Other | $1,413,457 | $2,900,000 |
| Other | $110,500 | $192,000 |
| Total | $1,523,957 | $2,992,000 |
| Total | $393,191 | $752,000 |
| Real Estate | $0 | $0 |
Ongoing fees as disclosed in the FDD.
| Fee Type | Rate | Type | Basis | Frequency |
|---|---|---|---|---|
| Royalty | 4.0% | PCT | Gross Sales | monthly |
| National Advertising | 3.5% | PCT | Gross Sales | monthly |
| Local and Regional Advertising | 0.5% | PCT | Gross Sales | monthly |
| Technology Fee | $7,620 | VARIABLE | Per restaurant per year, based on prior fiscal year Gross Sales | annually |
| FreshAi Service Fee | $20,004 | FIXED | Per restaurant per year | annually |
| Cyber Insurance Policy Premium Payment | $889 | FIXED | Per restaurant | annually |
| In-App Delivery Account Settlement Services | 3.0% | PCT | Per in-app delivery transaction amount | one_time |
| Customer Care | $95 | FIXED | Per restaurant per month | monthly |
| Transfer | $5,000 | VARIABLE | Per transfer | one_time |
| Partial Transfer/Ownership Change | $2,500 | VARIABLE | Per transfer | one_time |
| Consent to Collateral Assignment | $5,000 | VARIABLE | Per assignment | one_time |
| Renewal | $12,500 | FIXED | Per restaurant | one_time |
| Additional Training | N/A | VARIABLE | Expenses incurred | one_time |
| Audit | N/A | VARIABLE | Costs of audit | one_time |
| Late Fee/Interest | $100 | FIXED | Per late payment | one_time |
| Costs and Attorneys Fees | N/A | VARIABLE | Actual costs incurred | one_time |
| Continuous Operations Fees | N/A | VARIABLE | Average monthly royalty and advertising contribution | one_time |
| Development Agreement - Development Obligations Fee | $6,000 | VARIABLE | Per month per restaurant | monthly |
| Indemnification | N/A | VARIABLE | Actual costs incurred | one_time |
| Review of Proposed Offering Materials of Franchisee | $10,000 | VARIABLE | Per review | one_time |
| Franchise Flip Fees - Pre-Offer Advisory Fee | $25,000 | FIXED | Per advisory engagement | one_time |
| Franchise Flip Fees - Offer Preparation Fee | $12,500 | FIXED | Per additional affected restaurant | one_time |
| Franchise Flip Fees - Transaction Advisory Fee | $12,500 | FIXED | Per additional affected restaurant | one_time |
| FSA Re-Assessment Visit Fee | $243 | VARIABLE | Per re-assessment | one_time |
| Rent | N/A | VARIABLE | Per lease/sublease agreement | monthly |
Financial performance data as disclosed in FDD Item 19.
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Average Annual Gross Sales | $2,326,904 | USD | Company Restaurants | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $2,229,249 | USD | Company Restaurants | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Number of Restaurants at or Above Average | 151.0 | COUNT | Company Restaurants | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Annual Gross Sales | $2,108,454 | USD | Franchise Restaurants | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $1,984,382 | USD | Franchise Restaurants | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Number of Restaurants at or Above Average | 2260.0 | COUNT | Franchise Restaurants | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Annual Gross Sales | $4,052,626 | USD | Transportation | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $3,919,499 | USD | Transportation | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Annual Gross Sales | $2,140,611 | USD | Fuel | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $2,008,782 | USD | Fuel | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Annual Gross Sales | $1,518,680 | USD | Food Court | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $1,446,426 | USD | Food Court | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Annual Gross Sales | $1,828,811 | USD | Military | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $2,047,883 | USD | Military | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Annual Gross Sales | $2,435,714 | USD | Urban | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $2,240,057 | USD | Urban | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Annual Gross Sales | $2,053,212 | USD | Suburban | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $1,943,144 | USD | Suburban | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Annual Gross Sales | $2,128,296 | USD | Rural | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $2,045,357 | USD | Rural | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Annual Gross Sales | $2,122,646 | USD | All Units | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Median Annual Gross Sales | $2,045,357 | USD | All Units | FY2024 (Jan 1, 2024 - Dec 29, 2024) |
| Average Weekly Gross Sales | $39,853 | USD | Franchise Restaurants | Fiscal 2023-24 (restaurants with 26+ weeks) |
| Median Weekly Gross Sales | $39,456 | USD | Franchise Restaurants | Fiscal 2023-24 (restaurants with 26+ weeks) |
| Gross Sales | $2,339,436 | USD | Traditional Company Owned | FY2024 |
| Gross Sales (Median) | $2,239,518 | USD | Traditional Company Owned | FY2024 |
| Cost of Sales | $760,449 | USD | Traditional Company Owned | FY2024 |
| Cost of Sales (Median) | $730,122 | USD | Traditional Company Owned | FY2024 |
| Cost of Sales % of Revenue | 32.5% | PCT | Traditional Company Owned | FY2024 |
| Gross Profit | $1,578,987 | USD | Traditional Company Owned | FY2024 |
| Gross Profit (Median) | $1,509,184 | USD | Traditional Company Owned | FY2024 |
| Gross Profit % of Revenue | 67.5% | PCT | Traditional Company Owned | FY2024 |
| Other Operating Expenses | $1,152,992 | USD | Traditional Company Owned | FY2024 |
| Other Operating Expenses (Median) | $1,130,651 | USD | Traditional Company Owned | FY2024 |
| Other Operating Expenses % of Revenue | 49.3% | PCT | Traditional Company Owned | FY2024 |
| Restaurant EBITDA before Rent | $425,995 | USD | Traditional Company Owned | FY2024 |
| Restaurant EBITDA before Rent (Median) | $377,286 | USD | Traditional Company Owned | FY2024 |
| Restaurant EBITDA before Rent % of Revenue | 18.2% | PCT | Traditional Company Owned | FY2024 |
| Royalty (4% of Gross Sales) | $93,577 | USD | Franchised Restaurants | FY2024 |
Based on financial performance data disclosed in Item 19 of the FDD.
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross Revenue | $2,239,518 | 100% |
| COGS | $-727,843 | 32.5% |
| Labor | $-0 | 0% |
| Occupancy | $-0 | 0% |
| Marketing | $-0 | 0% |
| Other Costs | $-1,511,675 | 67.5% |
| Royalty Fee (franchisor) | $-89,581 | 4.0% |
| Ad Fund Fee (franchisor) | $-11,198 | 0.5% |
| Owner's Profit | $-100,778 | -4.5% |
Model your personal financial scenario by adjusting the assumptions below.
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2022 | 5535 | +132 | -- | 155 | 5591 | -- | +56 |
| 2023 | 5591 | +94 | -- | 149 | 5627 | -- | +36 |
| 2024 | 5627 | +102 | -- | 312 | 5552 | -- | -75 |
How Wendy's compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $3K – $630K | No Item 19 | -- | -- |
| McDonald's | 12772 | $1.47M – $2.64M | No Item 19 | 5.0% | -- |
| Dunkin' | 8499 | $527K – $1.83M | $1.43M | -- | 0.8x |
| Domino's Pizza | 7043 | -- | $24K | 5.5% | -- |
| Burger King | 6701 | -- | No Item 19 | -- | -- |
| Wendy's | 5552 | $393K – $2.99M | $2.23M | 4.0% | 0.8x |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $3.77M | $1.27M | 5.0% | 1.5x |
| Papa John's | 3291 | $261K – $853K | No Item 19 | 5.0% | -- |
| Popeyes Louisiana Kitchen | 3177 | $505K – $3.92M | No Item 19 | 5.0% | -- |
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