Especially compared to the booming burger franchises, Wendy`s franchises are expensive investments that require a lot of upfront capital. In comparison, Five Guys requires only a fraction of what an initial investment in a Wendy`s would be and requires only $306,000 to $641,000 in initial investments. Thomas was first introduced to working in a restaurant by his adoptive grandmother, who worked in a restaurant. He told People Magazine that if he owned a restaurant, he thought he could eat anything he wanted, for free. After having four children while running his first restaurant in Indiana, including his youngest Melinda (nicknamed “Wendy”), Thomas and his wife moved to Columbus Ohio in 1962, where he followed his former boss to turn around four Kentucky Fried Chicken franchises, according to Mashed. You have the choice to operate three different types of restaurants – full service, casual fast (an express restaurant) and university – each with a different initial investment. Full-service restaurants range from $648,425 to $993,870; University restaurants range from $439,943 to $921,712; and fast casual restaurants range from $308,500 to $607,487. This includes deductible fee amounts ranging from $45,000 to $59,000. Franchisees must have net assets of $850,000 and $250,000 in cash. The total investment required to start operating an A&W franchise restaurant, without rent or land, ranges from $269,000 million to $1.2 million, depending on whether you choose to operate in a new standalone location, online or captive, according to the FDD. Franchise fees range from $15,000 to $30,000. As a franchisee of a Wendy`s restaurant, you compete with other quick service restaurants, full-service restaurants, casual restaurants, delicatessens and in-store cafes, large grocery stores and specialty stores, as well as other items sold in convenience stores and similar types of businesses. Here are a few reasons why you`ll want to join this franchise: For those who have never built a Wendy`s restaurant, they are considered a “Builder for the First Time,” in which case the tech support fee can be cut in half.
To receive this reduced fee, the prospective franchisee must use the Wendy`s Franchise Development Program. Wendy`s franchisees` rental income increased from $27 million in 2013 to $68 million in 2014. This is mainly because the company has sold some of its stores to its franchisees. It deserves rental income from them. The transition from company-owned to franchised businesses is part of Wendy`s Systems Optimization Initiative program. We will discuss the program in the next part of this series. .