United States fast food chain restaurant called Wendy's

2. EXECUTIVE SUMMARY
The following report contains information related to the franchise
opportunity identified in the United States international fast food
chain restaurant called Wendy's. We select Colombia as your
destination and specifically Barranquilla as the indicated city.
Being one of the major cities and the fourth most populous in
Colombia, Barranquilla has a privileged geographical location which
makes it the largest commercial provider of the Colombian
Caribbean. This city also has an excellent port infrastructure that
makes it the second region of the country with more foreign direct
investment and it has the support of a government agency which is
responsible for strengthening the cities’ foreign investment.

3. Although there are many business options, a franchise with a well
known company represents more income opportunities abroad.
Wendy's is the fourth largest franchise in the world, so we can know
for sure that this is going to be a real success for the company and its
goals.
In this investment your minimal cost may be $1,000 dollars, but you
will be receiving huge amounts of money in sales. For make a real
franchise project, Colombian Investments will provide $250 dollars.
Then, we present you a clear business idea that includes details of the
franchise model, the chosen city, the nature of the business, financial
requirements, the advantages and disadvantages of this franchise and
expected results.

4. PURPOS
E
The investigation seeks:
• Show that a franchise is the best option to enter into a new business ventures,
given that it has low risks and rapid growth.
• Present the reasons of why Wendy’s franchise represents a good investment
option.
This research was made to identify a new investment option for
Colombian Investments that will provide more incomes and business
opportunities especially in Barranquilla.

5. Wendy's is an
international fast
food chain
restaurant founded
by Dave Thomas on
November 15, 1969,
in Columbus,
Ohio, United States
BACKGROUN
D

6. MENU
Wendy's menu consists primarily of hamburgers, chicken
sandwiches, French fries and beverages, including the Frosty.

7. Why franchise is a good idea?
The system theory states that
franchises are a formula to grow
quickly, with less risk and less
capital for both; the business
entrepreneur who is the owner of
the business concept or the
entrepreneur who engages in it.

8. This is a type of business that has achieved the position it has through
the professional structuring of a support center, which is responsible for
developing permanent network of franchised business, which gets a
clear marketing strategic guidelines for the efficient economic operation
and surveillance concept.

9. This should be seen as a true business scheme that in
practice goes beyond the simple act of giving a brand
franchise, because this concept bring an integrated model
that includes service, experience, operation and marketing
that are part of the brand.

10. An established franchise enjoys a recognized name,
a brand, which makes the business of the franchisee
start with a reputation gained in advance.

11. MARKETING
MIX
products place
promotion price

12. HAMBURGERS SALADS
Bacon portobella melt on brioche Asian cashew chicken full side
Pulled pork cheeseburger Asian cashew chicken half side
Dave’s hot’n juicy BBQ ranch chicken full side
Pretzel bacon cheeseburger BBQ ranch chicken half side
Baconator Apple pecan chicken full side
Son of baconator Apple pecan chicken half side
Pulled pork sandwich Spicy chicken Caesar full side
Asiago ranch chicken club Spicy chicken Caesar half side
Spicy chicken sandwich
Grilled chicken wrap
Crispy chicken wrap
Nuggets 4, 6, 10

13. Place
Wendy´s is located in 27 countries around
the world with approximately 6,650
stores.
It will be located in the north of
Barranquilla; it surrounds one of the
biggest malls of the city, in order to take
advantage of the place and the people
who visit the mall.
Promotion
Advertising: radio, TV, newspapers,
internet and magazines.
Sales promotions: discounts.
Social media: Instagram, facebook,
twitter and YouTube.
Price
It is necessary to take into account the costs
which the new franchise will incur and
according to the prices will be ruled under
the same margin that the one that operates
in the principal store.

14. SWOT ANALYSIS OF WENDY’S

15. FINANCIAL
REQUIREMENTS
Type of Fee Low High
Application Fee $5,000 $5,000
Training Expenses $26,000 $100,000
Initial Technical Assistance Fee $25,000 $25,000
Real Estate, Permits, Construction of Standard
Prototype Restaurant and Site Improvements:
Cash Purchase
Financing (3 mos.)
Leasing (3 mos.)
$1,190,000
$274,000
$24,000
$2,401,000
$540,000
$48,500
Equipment and Signage:
Cash Purchase
Financing (3 mos.)
Leasing (3 mos.)
$527,000
$23,500
N/A
$600,000
$26,500
N/A
Opening Inventory and Supplies $10,000 $14,000
Additional Funds - 3 Months $150,000 $175,000
Grand Opening Advertising $7,500 $10,000
Security Deposit, Utilities, Licenses and Other
Prepaid Expenses
$20,000 $65,000
Insurance Cost $10,000 $35,000
ESTIMATED TOTAL:
If you finance the Land, Building, Improvements,
Equipment and Signage
$551,000 $995,500
Initial Investment:

16. Type of Fee Amount
Royalty Greater of 4% of Gross Sales or $1,000 per month.
National Advertising 3.25% of Gross Sales.
Local and Regional Advertising .75% of Gross Sales.
Additional Training Will vary under circumstances.
Transfer $5,000
Renewal
An amount which is not greater than 25% of the then-current
Technical Assistance Fee.
Audit
Costs and expenses of audit, including travel, lodging, wages,
accounting and legal costs, and interest on any understated amount.
Late Fee/Interest
$100 plus interest on the overdue amount from the date it was due
until paid, at the
(i) rate determined by Wendy's, or
(ii) maximum legal rate, whichever is less.
Costs and Attorney's Fees Will vary
Indemnification Will vary
Review of Proposed Offering Materials of Franchisee
$10,000 or a greater amount necessary to reimburse Wendy's for its
legal, accounting, and other costs.
Other Fees:

17. DIRECT COMPETITORS OF WENDY’S
Wendy’s has 6.650 stores and its annual revenues are $2,5B dollars.
Year Company # stores Annual revenues
2013 McDonald’s 35.000 $28,1B dollars
2013 Burger King 12.000 $1.15B dollars
2013 El corral 207 $150.000M dollars
2013 Presto 95 $28.000M dollars

18. •Advantages
•Disadvantages

19. CONCLUSIONS AND
RECOMMENDATIONS
There are plenty of franchise
opportunities for people to
choose from, but few offer
as much earnings as
wendy’s does. Wendy’s
charges 4% royalty,
compared to an 8% from
subway and 12% from Mc
Donald’s. Wendy’s is not just
another hamburger place;
the American hamburger
chain cares about the quality
of their products, their
customer needs and
customer satisfaction. Old
fashioned hamburgers from

20. The restaurant’s most popular ad campaign
“Where’s the Beef?” wants to emphasize on the
quality and size of the meat. After analysing the
results of the research, we can conclude that
Wendy’s is an excellent franchise option and it is
the most profitable and low cost franchise
compared to its competitors or similar franchises.

22. THANK YOU