Wendy's Franchise Cost, Revenue & Review 2026
- Investment
- $1.6M – $3.1M
- Disclosed sales
- $2.0M
- gross sales, not profit
- SBA charge-off
- 0.8%
- on 200 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Wendy's is a quick-service burger chain known for fresh, never-frozen beef, sandwiches, and Frostys. Franchisees operate individual restaurants covering food prep, staffing, and drive-thru service within a set territory.
FranchiseVerdict summary · 2026
A Wendy's franchise requires a total initial investment of $1.6M – $3.1M, including a $25K – $50K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average unit revenue was $2.0M[2]. SBA 7(a) loans show a 0.8% charge-off rate across 200 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.6M – $3.1M
- 98th pct Service Resta…
- Avg gross sales
- $2.0M
- 33rd pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 5,969
- 96th pct Service Resta…
- SBA charge-off
- 0.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.6M – $3.1M including a $50K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.0M/year (median $1.9M). Note: this is gross profit, not take-home income.
- RISKVerdict A (Strongest tier), verdict score 79/100 (higher is better). SBA loan charge-off rate of 0.8% across 200 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -6 franchised outlets in the latest year (100 opened, 106 closed); 20 signed but not yet open (Item 20).
- TERMSNo protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Quality Is Our Recipe, LLC
- Parent company
- Wendy's Restaurants, LLC
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- The Wendy's Company
- FDD Item 1, page 6 of the 2026 FDD
- Predecessor
- Wendy's International, LLC
- Prior franchisor entity
- CEO title
- Interim Chief Executive Officer, Chief Financial Officer, and Manager
- Ken Cook
- Incorporated in
- Delaware
- HQ
- One Dave Thomas Boulevard, Dublin, Ohio 43017
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $562.0M
- vs $587.7M prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Ken Cook
- Headquarters
- OH
- Founded
- 1969
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 382% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown5 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Technical Assistance Fee | $50K | $50K | |
| Building | $1.0M | $2.2M | |
| Equipment | $380K | $650K | |
| Pre-Opening Expenses, Training Expenses, and Additional Operating Funds | $117K | $205K | |
| Real Property | — | — | |
| Total initial investment | $1.6M | $3.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.6M – $3.1M
- Bottom third — review vs category
- Liquid capital req'd
- $88K – $163K
- Bottom third — review vs category
- Franchise fee
- $25K – $50K
- Bottom third — review vs category
- Royalty
- 4.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 1.50-4.00% of Gross Sales for national advertising, 0.50%…
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Technology fee | $7K |
| Transfer fee | $5K |
| Renewal fee | $25 |
| Inventory (initial) | $25K – $141K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 104% above the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Wendy's until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$2.5M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Wendy's unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $2.0M
- Per unit, per year
- Median gross sales
- $1.9M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 5,347 outlets
- vs category median 19 · large
- Range (low → high)
- $392K→$7.7MCited, not corroborated — printed on page 58 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 781 Quick-Service Restaurants brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.0M/year in gross sales. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 10.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 0/10 — minimal disclosure beyond the required average. Hard to judge the distribution of outcomes across units.
Operator retention
System roughly stable (-1.4% 3-year CAGR) with 5,969 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Wendy's Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,969
- Opened
- 100
- Last reporting year
- Closed
- 106
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 15
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.8%
- Company-owned
- 423
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (3-yr)
- -1.4%
- Net unit change over 3 years
- 3-yr CAGR
- -1.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 15
- Reacquired
- 35
- Franchisor bought back
- Signed, not yet open
- 20
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 93
- Franchisor's next-year forecast
- Transfer rate
- 75.8%
- Owners selling to other franchisees
- Termination rate
- 21.5%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 50 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
5,920 current owners across 50 states; 38 former (terminated, transferred or not renewed) listed separately.
- FL 496
- TX 453
- OH 396
- CA 299
- GA 292
- NC 258
- PA 257
- NY 233
- MI 216
- VA 211
- IL 197
- TN 176
- +38 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 200
- Loan volume
- $151.4M
- Median loan
- $536K
- 50th percentile
- Charge-off rate
- 0.8%
- on 200 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 98.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 54
- Defaults
- 1
- Typical loan rate
- 6.5%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 3,825
- 4.5 per loan
- Lender concentration
- 12%
- top lender's share
Borrower mix: 70% went to startups / new businesses, 30% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Wendy's charge-off rate by loan vintage
Top lenders financing Wendy's franchisees
Showing 3 of 54 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Wendy's from SBA 7(a) FOIA data.
- Principal loss rate
- 0.1%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 6.47%
- Avg chargeoff amount
- $81K
- Lender concentration
- 12.1%
- Job velocity
- 4.5 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 3,825
Top SBA lendersTop lender holds 12% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 12 | $7.6M | 0.0% |
| 2 | Readycap Lending, LLC | 10 | $5.4M | 0.0% |
| 3 | Byline Bank | 7 | $9.1M | 0.0% |
| 4 | Zions Bank, A Division of | 6 | $585K | 0.0% |
| 5 | SouthState Bank, National Association | 6 | $5.3M | N/A |
| 6 | PNC Bank, National Association | 3 | $1.6M | 0.0% |
| 7 | TD Bank, National Association | 3 | $3.1M | 0.0% |
| 8 | Stellar Bank | 3 | $1.5M | 0.0% |
| 9 | KeyBank National Association | 2 | $849K | 0.0% |
| 10 | BAC Community Bank | 2 | $950K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 25 | 0 | 0.0% |
| NYNew York | 10 | 0 | 0.0% |
| TXTexas | 10 | 0 | 0.0% |
| GAGeorgia | 9 | 0 | 0.0% |
| PAPennsylvania | 6 | 0 | 0.0% |
| FLFlorida | 5 | 0 | 0.0% |
| MIMichigan | 5 | 1 | 20.0% |
| IDIdaho | 4 | 0 | 0.0% |
| ILIllinois | 3 | 0 | 0.0% |
| OHOhio | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.8% charge-off rate across 200 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.8% — 95% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
All disclosed litigation is concluded/closed. Multiple shareholder derivative suits and a data-breach class action series (2016 credit card incidents) settled with payments up to $950,000 (attorneys' fees), $50 million (First Choice Federal Credit Union class), and $3.4 million cap (Jonathan Torres class). A Washington state securities regulator consent order (2018) for franchise broker registration lapse resulted in a $2,400 payment. A wage-related class action (Juan Endara, payroll debit cards) settled for $36,000 total (Wendy's entities contributed $12,000). No pending litigation and no franchisor-initiated litigation in the last fiscal year.
Largest disclosed settlement: $50,000,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 79 / 100 verdict
- 01MINORStrong financials: $915M net worth, $517M net income
- 02MEDAudited financials, Item 19 disclosed
- 03MEDSlight net unit decline of -1.4%, immaterial
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail6 matters · Item 3
Litigation cases
The franchisor
Concluded (4)
Thomas Caracci, derivatively and on behalf of The Wendy’s Company v. Emil J. Brolick, Todd A. Penegor, Nelson Peltz, Peter W. May, Peter H. Rothschild, Joseph A. Levato, Janet Hill, Michelle J. Matthews- Spradlin, Dennis M. Kass, Matthew H. Peltz, Edward P. Garden, David E. Schwab II, Randolph Lewis
dismissedThird-party plaintiff · filed 2017 · U.S. District Court, Southern District of Ohio · 1:17-cv-00192
“Case No.: 1:17-cv-00192. Plaintiff, owner of shares of Wendy’s Co. common stock and on behalf of Wendy’s Co., filed a putative shareholder derivative complaint. The Complaint asserted claims of breach of fiduciary duty and violations of Section 14(a) and Rule 14a-9 of the Securities Exchange Act of 1934 arising out of the credit card incidents”Page 14 of the 2026 FDD, Item 3
Outcome:“On June 12, 2017, the Court granted a Joint Motion to Consolidate this matter with the Graham lawsuit, directing all future pleadings to be filed in the Graham action. Thus, the Court administratively dismissed this action. This matter is now closed.”
First Choice Federal Credit Union, on behalf of itself and all others similarly situated v. Wendy’s Co., Wendy’s LLC, and WIL
settledThird-party plaintiff · filed 2016-04-25 · U.S. District Court for the Western District of Pennsylvania · 2:16-CV-00506-MBF-MPK
“Case No. 2:16-CV-00506-MBF-MPK, U.S. District Court for the Western District of Pennsylvania (“Court”). The Defendants were named in a civil complaint that was filed on April 25, 2016 by plaintiff First Choice Federal Credit Union. The complaint asserted claims of common law negligence, negligence per se due to the alleged violation of Section 5 of the Federal Trade Commission Act”Page 13 of the 2026 FDD, Item 3
Outcome:“On February 13, 2019, the parties reached an agreement to settle the matter, which was subsequently approved by the Court on November 6, 2019.” (page 14)
James Graham, derivatively on behalf of nominal defendant, The Wendy’s Company v. Nelson Peltz, Peter W. May, Emil J. Brolick, Clive Chajet, Edward P. Garden, Janet Hill, Joseph A. Levato, J. Randolph Lewis, Peter H. Rothschild, David E. Schwab II, Ronald C. Smith, Raymond S. Troubh, Jack G. Wasserm
settledThird-party plaintiff · filed 2016-12-19 · U.S. District Court for the Southern District of Ohio · 1:16-cv-1153
“Case No. 1:16-cv-1153, U.S. District Court for the Southern District of Ohio. On December 19, 2016, Plaintiff, owner of shares of Wendy’s common stock and on behalf of Wendy’s, filed a putative shareholder derivative complaint. Wendy’s Co. was also named as a nominal Defendant. The Complaint asserts claims of breach of fiduciary duty, waste of corporate assets, unjust enrichment”Page 13 of the 2026 FDD, Item 3
Outcome:“An Order granting final approval of settlement was issued on September 15, 2021, with final Judgment entered on September 24, 2021.”
Jonathan Torres, Individually and on behalf of all others similarly situated v. Wendy’s International, LLC
settledThird-party plaintiff · filed 2016-02-08 · U.S. District Court, for the Middle District of Florida · 6:16-cv-210-Orl-18DAB
“6:16-cv-210-Orl-18DAB, U.S. District Court, for the Middle District of Florida. On February 8, 2016, WIL was named as a defendant in a civil complaint that was filed by plaintiff Jonathan Torres, on behalf of himself and similarly situated customers. The complaint asserted claims of breach of implied contract, negligence and violations of the Florida Unfair and Deceptive Trade Practices Act”Page 14 of the 2026 FDD, Item 3
Outcome:“On February 26, 2019, the Court approved the settlement of this case. The settlement agreement included a $3.4 million cap (claims made structure), including attorneys’ fees, costs and expenses, and”
Parent, affiliates and predecessor
Concluded (2)
In the Matter of Wendy’s International, LLC
concludedGovernment or regulatory action · Wendy’s International, LLC (WIL) · filed 2018 · State of Washington Department of Financial Institutions-Securities Division · Order No. S-17-2358-18-CO01
“In the Matter of Wendy’s International, LLC (Order No. S-17-2358-18-CO01), State of Washington Department of Financial Institutions-Securities Division (“Securities Division”), entered March 26, 2018. The Securities Division asserted that WIL violated the Washington Franchise Investment Protection Act”Page 15 of the 2026 FDD, Item 3
Outcome:“Pursuant to the Consent Order, WIL agreed not to violate Section RCW 19.100.140 of the Washington Act (the broker registration requirement) and it agreed to pay $2,400 to the Securities Division for its investigative costs.”
Juan Endara, on behalf of himself and all others similarly situated v. Automatic Data Processing, Inc.; First Data Corporation; Meta Financial Group, Inc.®; Metabank™; Wendy’s Co.; Wendy’s LLC; WIL; Wendy’s of N.E. Florida (the Wendy’s entities are hereinafter collectively the “Wendy’s Defendants”),
settledThird-party plaintiff · WIL, with Wendy’s Co., Wendy’s LLC and Wendy’s of N.E. Florida (the Wendy’s Defendants) · filed 2016-07-01 · U.S. District Court for the Middle District of Florida · 6:16-cv-1032-ORL-40DAB
“Case No. 6:16-cv-1032-ORL-40DAB, U.S. District Court for the Middle District of Florida. On July 1, 2016, plaintiff, a former non-exempt crew member who had worked at a Wendy’s restaurant in Orlando, Florida, on behalf of himself and all others similarly situated, filed a complaint alleging that the Defendants were negligent and unjustly enriched”Page 15 of the 2026 FDD, Item 3
Outcome:“On November 29, 2016, the parties agreed to a mediation settlement proposal. In settlement of the dispute, Wendy’s Co., Wendy’s LLC, and WIL contributed $12,000 toward the $36,000 settlement amount. The matter has been dismissed by the Court with prejudice.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Specific location |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 45 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 6 |
View Item 3 litigation summary
All disclosed litigation is concluded/closed. Multiple shareholder derivative suits and a data-breach class action series (2016 credit card incidents) settled with payments up to $950,000 (attorneys' fees), $50 million (First Choice Federal Credit Union class), and $3.4 million cap (Jonathan Torres class). A Washington state securities regulator consent order (2018) for franchise broker registration lapse resulted in a $2,400 payment. A wage-related class action (Juan Endara, payroll debit cards) settled for $36,000 total (Wendy's entities contributed $12,000). No pending litigation and no franchisor-initiated litigation in the last fiscal year.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 520 hrs
- Training location
- On-site and pre-opening
- Ongoing training
- Required
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Aloha POS software supplied by NCR
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha POS software supplied by NCR
Item 20 · call current owners
Franchisee Contacts
5,958 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Wendy's franchise?
The total investment to open a Wendy's franchise ranges from $1.6M – $3.1M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Wendy's franchise owners earn?
According to Item 19 of the Wendy's FDD, the average gross sales per unit is $2.0M. The median is $1.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Wendy's?
Wendy's is franchised by Quality Is Our Recipe, LLC. Its parent company is Wendy's Restaurants, LLC. The ultimate parent named in the FDD is The Wendy's Company. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Wendy's FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Wendy's FDD and qualifies whose outlets they describe.
What is Wendy's's franchise failure rate?
Based on SBA 7(a) loan data, Wendy's has a charge-off rate of 0.8% across 200 loans, meaning 0.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Wendy's franchise locations are there?
As of their most recent FDD filing, Wendy's has 5,969 total units in the United States, including 5,546 franchised units and 423 company-owned units. 100 new units were opened in the latest reporting year.
Is Wendy's a good franchise to buy?
FranchiseVerdict rates Wendy's as a A-grade franchise with a verdict score of 79 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Wendy's, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.