If you're a seasoned entrepreneur looking to get into the quick-service industry, Wendy's offers franchises all across North America. Wendy's is looking for franchisees with previous restaurant experience who are interested in franchising more than one store, whether that involves taking over existing restaurants or opening new ones. The process for purchasing a Wendy's franchise follows several steps.
1. Meet the Financial Requirements
The minimum financial requirements for a Wendy's franchise include:
- Minimum net worth of $5,000,000
- Minimum liquid assets of $2,000,000
2. Complete Franchise Questionnaire
Located on the Wendy's franchise website, the Franchise Questionnaire helps Wendy's determine if you are a good fit before further pursuing the franchise process. The questionnaire asks for:
- Personal information like name, address and email address
- Franchise plans, including where you want to open new stores or what existing stores you want to take over, and how many stores you want to open
- Business experience and financial data, such as net worth, assets and past franchises
If Wendy's decides you are a good fit, it will send you a Franchise Disclosure Document and Prospective Franchise Application.
3. Complete the Franchise Application
The application asks for additional contact information, detailed financial information and a comprehensive 3 to 5 year business plan that outlines management. operations and development.
4. Pay the Franchisee Fees
Fees for all new franchisees taking over existing stores include:
- Application - $5,000
- Background check - $325
- Technical assistance fee - $40,000 per restaurant, covers 20-year term
On top of the fees mentioned above, opening a new restaurant includes an additional initial investment of $2,000,000 to $3,500,000 depending on the location and local building costs.
Other ongoing fees include:
- Royalties - 4 percent of gross sales
- National advertising - 3.5 percent of gross sales
- Local advertising - 0.5 percent of gross sales
Along with traditional brick and mortar Wendy's stores, you also can choose a non-traditional development option in venues like airports, college and university campuses, travel plazas, hospitals and military bases.
5. Go Through Training
As part of the franchising process, Wendy's requires and leads all management team training for new franchisees and their teams. The training program includes in-restaurant, classroom and regional training and takes 4 to 6 months to complete. Wendy's continues to provide ongoing training once your new store is open or you take over an existing store.
The time it takes to go through the franchising process varies depending on how quickly you start training and how long training ends up taking.