Wendy's Franchise Cost (2025)
Complete cost breakdown for Wendy's franchise: $1524K–$2992K investment, 4% royalty, franchise fee, and ongoing costs. From the official 2025 FDD.
Source: 2025 FDD filed in MN
Total Investment
$1.5M–$3.0M
Franchise Fee
$13K–$50K
Non-refundable
Royalty
4%
Gross Sales; tiered by restaurant type: 4% Traditional/Groundbreaker, 5% Pacesetter, 6% Build-to-Suit/military/Frosty Carts. Royalty abatements available under Top Builder Incentive program (9% abatement over 4 years for qualifying new builds).
Ad Fund
2.5%
Gross Sales; Wendy's National Advertising Program (WNAP): 1.50%–3.50% of Gross Sales (weighted average ~2.5%). Local/Regional Advertising: 0.50% of Gross Sales additionally required.
Ongoing Fees
Monthly and annual costs after opening.
| Fee | Amount | Notes |
|---|---|---|
| Royalty | 4% of gross sales | |
| Ad Fund | 2.5% of gross sales |
Revenue Context
Average Revenue
$2.1M
From Item 19 (2025 FDD)
Investment-to-Revenue Ratio
0.7x
Lower is better (min inv ÷ avg rev)
Annual Fee Burden
6.5%
Royalty + ad fund as % of gross sales
At average revenue of $2.1M, you'd pay approximately $84K/year in royalties alone, plus $53K/year in ad fund contributions.
Other Upfront Fees
| Fee | Amount |
|---|---|
| Training Fee | $5K |
| Background Investigation Fee | $500 |
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