Wendy’s Franchise Earnings, History, Subliminal LOGO, and Review


We have been meaning to do a Wendy’s franchise
Review for quite some time just never got around to it. So today – Wendy’s Franchise – is it a good
investment choice, do they have a dark history the few people know about and is there a subliminal
message hidden in their logo – today on Franchise city. Wendy’s is unquestionably one of the most
iconic food brands out there. Founded by Dave Thomas in Columbus Ohio in
1969 at one time Wendy’s was the third largest burger chain with over 6500 locations. Can you guess who the 2 top burger chains
are ahead of Wendy’s? If you answered McDonalds and Burger King
you are correct. A lot of people think Wendy’s is still owned
by founder Dave Thomas and his family who started Wendy’s. But thats not the case. Now Dave, who was an Orphan and high school
dropout started the restaurant with the lofty goal of having a place for his 5 kids to work
eventually grew the chain to the fast food giant it is today. Now for the hidden history of Wendy’s most
of you don’t know. In 2008 Wendy’s franchise was purchased by
Triarc Companies for 2.34 billion. Now Mr. Thomas had since passed away but the
remaining family was apparently not happy at this news. Thomas’ daughter Pam Thomas Farber said “It’s
a very sad day for Wendy’s, and our family. We just didn’t think this would be the outcome,”
If her father were alive to hear news of the buyout, “he would not be amused,” she said. Triarc was started way back in 1884 as the
Deisel-Wemmer company, literally started with one man rolling cigars in his basement and
now buying Wendy’s for over 2 billion. True story. How could a cigar company make so much money? Now believe it or not pretty much everybody
smoked cigars back in the day but when the much healthier “cigarette” option became popular
many people switched and thus began the demise of the once very successful company, and really
the demise of the once flourishing cigar industry into the niche market it is today. So eventually the company was delisted and
sold off, new blood introduced and DWG began to acquire controlling interests in other
companies like propane, maintenance and storage, textiles and steel.The driving force behind
these million dollar acquisitions was a man named Vic Posner who was not very well liked
as he had a knack for hostile takeovers and was one of the first to practice a leveraged
buyout, often buying companies and installing himself as chairman and president making him
one of the highest paid executives of his time. He also got in trouble for using millions
of dollars in company money for lavish vacations and hotel stays for he and his family. Very interesting story he ended up being sued
by the SEC and shareholders, investigated for fraud and all manner of things but let’s
get back to Wendy’s! Cut to 1993 DWG changed its name to Triarc
companies and sold several holdings deciding to now focus on food and beverage. 1997 Triarc acquires Snapple from Quaker Oats, check this out they paid $300 million for Snapple while not that long before Quaker
Oats had purchased the brand for 1.7 Billion that is a big loss of 1.4 billion they lost
selling Snapple. Triarc later acquired Arby’s and ultimately
in 2008 acquired Wendy’s changing it’s name from Triarc to Wendy’s Arby’s group.in 2011
they sold Arby’s and became —-tada—– The Wendy’s company, Wendy’s International
LLC. So an interesting history for sure but is
a Wendy’s franchise a good investment? Let’s take a look. Taken from their 2018 Franchise Disclosure
Documents the cost to invest in a Wendy’s franchise is $2,018,500 to $3,654,000 if you
purchase for cash, $570,500 to $1,127,000 if you finance,and $323,500 to $628,500 if
you lease. Wendy’s franchise Royalties amount to 4% of
Gross sales, national advertising 3.5% of gross sales, local advertising .5% There are a few lawsuits in the FDD ranging
from Wendy’s allegedly misrepresenting trans-fats in their foods,to Wendy’s being sued by shareholders
for “unjust enrichment” “acting in bad faith” and gross mismanagement regarding the Triarc
merger. More recently back in 2016 as you may have
heard Wendy’s franchise got into trouble for a massive data breech that affected over 1000
of their locations. Wendy’s first claimed only 300 restaurants
were affected, then finally admitting that over 1000 stores had been affected and customers
names, credit or debit card information and more was stolen. Wendy’s tried twice to have that one dismissed
and finally agreed to settle for an undisclosed amount. You may have seen certain Wendy’s in you area
getting a makeover. That is part of a company wide initiative
to update their stores. But some franchisees are not happy with that. Back in 2014 Wendy’s largest franchisee, Davco,
who owned 140 Wendy’s franchise locations refused to perform the updates stating The
capital costs required for these projects �substantially exceed DavCo�s income and
internally generated cash flow,� And these renovations aren’t cheap costing franchisees
between $450,000 to as much as $1.9 million per store. Wendy’s sued Davco to try and force them to
perform the renovations but eventually they got out of the situation by selling their
stores to NPC. Now for you investors, the 2018 FDD does show
an increase in revenue for stores that performed the renovations. Wendy’s has also had some negative press for
refusing to join the Fair Food Program which has been called �one of the great human
rights success stories of our day�and helps Florida’s tomato workers with better wages
and working conditions including monitoring of harassment and other injustices . Now Walmart
has joined the fair Food program, McDonalds, Taco Bell, Subway and all it costs is one
single penny per pound of tomatoes. That small amount helps workers in a big way. Now Wendy’s decision was to just start buying
tomatoes from Mexico and a lot of people are unhappy. The website boycott-wendys.org has some very
eye opening information regarding working conditions with a quote from Harper’s Magazine
describing subhuman conditions, with workers forced to work without pay, trapped for months
at a time in scorpion-infested camps, often without beds, fed on scraps, and beaten when
they tried to quit. Now this type of behavior may have been what
the Thomas family was worried about. Come on Wendy’s it’s a penny a pound take
a hint from what happened to Tim Hortons in Canada, another big corporation that put money
first and has had a real tough time in the media lately. some of you might remember in 2005 a customer
claimed she found a human finger in her Chili at Wendy’s that cost the chain an estimated
21 million dollars. Fingerlady was found guilty of conspiracy
and grand theft and was sentenced to 9 years in prison. Apparently her husband, who was sentenced
to 12 years, had gotten the finger from a co-worker who had cut it off in an accident. Wendy’s has been selling off their company
owned stores to franchisees they sold 223 stores in 2015 and 302 stores in 2016. maybe they don’t want to spend money on renovations? Before we wrap up Wendy’s recently updated
their logo can you see a subliminal message hidden somewhere? If you look really close you can see the word
“MOM” in the ruffled collar of Wendy. Wendy’s said it was not intentional. Don’t forget to like and subscribe and if
you need help finding a franchise give the experts a call at franchise city or visit
us at http://www.franchise.city. Thanks for watching.

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66 thoughts on “Wendy’s Franchise Earnings, History, Subliminal LOGO, and Review

  1. Not sure why you are including all of this information about the fair food program? It sounds like a tax and you can bet that money is getting funneled to a bunch of rich bureaucrats, not workers. I believe the federal govt. should be contacted if workers are being mistreated. BTW, I have noticed that several Wendy's have closed down in our area. I'm not sure why but I did not see a drop in quality as the cause.

  2. 30% of McDonalds revenue was from starbucks-like drinks a few years back so I'm sure it is more now. That is something Wendys doesnt have yet that could boost profits.

  3. I worked at Wendy’s, it was one of my first jobs. I still think Wendy’s has the best tasting food of the 3 main burger chains!

  4. Fair food program, that's great except, Walmart won't pay their workers one single penny extra per hour… neither will most giant corporate bodies, luckily, In-N-Out and a few others do….

  5. The thing I respect about Wendy's is the square patty. Everyone else is all agreed on burgers being circular and they're like nah bollocks we're gonna do em square; but still use a circular bun.

  6. Heh, I was looking straight at a Snapple wondering whether or not to drink it, right when you mentioned that Triarc aquired it in 1997. What's the likelihood of that? 🙂 Just found your channel. Good videos, thanks for sharing.

  7. The Wendy's nearest me has had a bulb out in its street facing sign for at least a year. I was going to write the franchise owner. Since I'm hearing owners have sued to not maintain their buildings, I guess I should not waste my time.

  8. Also Dave Thomas worked for Corniel  Sanders  and KFC, and when you look at Harlem Sanders he mentored Dave Thomas in his interviews.

  9. I would not want to do anything with a company that makes a profit out of slave labor irrespective of how good their books look.

  10. Is there any real way to see if a specific franchise is doing well or not? By the street address, or something?
    For anything, Starbucks or McDonalds, Pizza Hut, etc?

  11. I hope their food has improved. It was terrible the last few times I went. In 1999 their spicy chicken sandwich would rival a Chick-fil-A sandwich today.

  12. More secret history: Dave Thomas started as an employee at a large KFC franchise owner. He knew Colonel Sanders and suggested Sanders be in his own commercials. Dave was a Kentucky Colonel ("I just didn't dress the part").

  13. Tim Horton's is struggling in Canada?!?! 😮

    I think it's time to get the STAN MIKITA DONUTS franchise headed to THE GREAT WHITE NORTH!!!! 😁

  14. My Lord that's pricey!! I think the reno they're doing to Mickey D's looks costly and stupid, I know that much. One time Ford learned the greed lesson. On the pinto. Geniuses

  15. Thank you for your content. I came across your channel and immediately knew this is content I need to hear. You are the God Emperor of free, practical, business insight.

  16. That is your best camera side angle. As many videos I watched of many YT contributions, you have a excellent presence, awesome pitching skills, and great hair.

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