Famous for their unique, square-shaped hamburger patties, Wendy’s are a giant in the global fast food industry. On a mission to deliver a more homely dining experience than their major competitors, the company has been selling old-fashioned burgers, chicken sandwiches, salads, shakes and fries to delighted diners for more than 50 years.
Offering franchise opportunities since 1972, Wendy’s was launched in 1969 in Columbus, Ohio. The founder, Dave Thomas named the business after his daughter Melinda – nicknamed Wendy. Today, the company is based in Dublin, Ohio and they are one of the ‘big three’ burger chains, alongside McDonald’s and Burger King. The business operates in more than 30 countries, and they have over 7,000 restaurants spread across the globe.
Wendy’s restaurant at a glance:
You can if you have very deep pockets. Never mind the minimum net worth and available cash requirements, which run to $1million and $500k respectively, you may face start-up costs of more than four million dollars. Additionally, Wendy’s are quite picky on who they sell their franchises to. They prefer high net worth individuals (obviously) who have previous experience in the food and beverage hospitality industry. Is this you?
Wendy’s is a global brand, with annual sales of more than $2billion. As you might expect, buying into a major business like this does not come cheap. Depending on your real estate situation – do you buy, finance or lease your land – the upfront cost to start a new Wendy’s restaurant can range from $320,000 all the way up to $4,600,000. This ranks the start-up cost as medium to very high. The initial franchise fee is $50,000. There are no franchise fee discounts for military veterans.
After opening, you are required to pay an array of ongoing fees and charges. They include:
| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $50,000 | $50,000 |
| Building construction | $580,000 | $2,000,000 |
| Real estate (land) | varies | varies |
| Equipment and computers | $415,000 | $550,000 |
| Pre-opening expenses, including training and operational funds | $110,000 | $190,000 |
| Legal costs | $10,000 | $30,000 |
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Yes, very much so. In Canada, Wendy’s franchised restaurants average $1,900,000 in gross sales per year and a gross profit, before overhead costs, of approximately $1,400,000. The typical net profit – what you could expect to collect after all costs, is $300,000 per year per franchise. This ranks as very good.
Low. The failure rate for a Wendy’s franchise is 2% to 4% per year.
If you can get over the initial financial and previous experience hurdles, a Wendy’s restaurant can be an excellent franchise opportunity – good profits, low risk, the backing of a major brand name and a large and loyal customer base. What’s not to like about that?
Franchisees receive the right to operate their Wendy’s Restaurant at a specific location approved by the company and identified in the Franchise Agreement. Franchisees have no exclusive rights or territory associated with the operation of their restaurant.
Wendy’s support for franchisees includes:
It begins with an application. Start the process today.
Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new Wendy’s franchise like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.
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Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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