Estimated initial costs
Our cost estimates are accurate as of 2021 from Franchise Direct and include opening fees and expenses only. The location you choose for your Wendy's franchise may result in higher or lower fees.
Equipment feesEquipment fees total $497,500 for Wendy's. This costs more than the $180,023 average for the top 200 franchises.
|Equipment and signage||$375,000 $16,000 N/A to $620,000 $26,000 N/A|
|Estimated total||$375,000 to $620,000|
Real estate feesReal estate will set you back $1,877,500 for Wendy's, which is more expensive than the average of $788,376 for the top 200 franchises.
|Real estate, permits, construction of standard prototype restaurant and site improvements||$1,240,000 $271,000 $24,000 to $2,515,000 $551,000 $63,500|
|Estimated total||$1,240,000 to $2,515,000|
Training feesWendy's initial training costs total $63,000 — more than the nationwide average of $9,788.
|Training expenses||$26,000 to $100,000|
|Estimated total||$26,000 to $100,000|
Inventory costsInitial inventory for Wendy's shakes out to $13,000. This is less than the nationwide average of $53,119.
|Opening inventory and supplies||$10,000 to $16,000|
|Estimated total||$10,000 to $16,000|
Marketing costsAdvertisement and marketing costs total up to $8,750 for Wendy's, beating out the nationwide average of $9,938.
|Grand opening advertising||$7,500 to $10,000|
|Estimated total||$7,500 to $10,000|
Licenses and permits costsWendy's initial licenses and permits will set you back $92,500. This comes out to more than $18,770 — the overall nationwide average.
|Licenses and permits||Cost|
|Security deposit, utilities, licenses and other prepaid expenses||$20,000 to $165,000|
|Estimated total||$20,000 to $165,000|
Insurance costsInitial insurance costs for Wendy's run $22,500. This means you'll be paying more than the overall nationwide average of $6,311.
|Insurance cost||$10,000 to $35,000|
|Estimated total||$10,000 to $35,000|
Administrative feesWendy's administrative fees total up to $55,000 — which comes in over the overall nationwide average of $6,761.
|Application fee||$5,000 to $5,000|
|Initial technical assistance fee||$50,000 to $50,000|
|Audit||Costs and expenses of audit, including travel, lodging, wages, accounting and legal costs, and interest on any understated amount.|
|Estimated total||$55,000 to $55,000|
Other expensesMiscellaneous expenses for Wendy's total $171,000 — more than the nationwide average of $69,970.
|Three months' additional funds||$150,000 to $192,000|
|Estimated total||$150,000 to $192,000|
How to financeSince the estimated total for Wendy's is on the more costly side, we recommend following these steps to get fully financed:
- Go to the Wendy's franchising website and review its financial requirements, including cash-on-hand requirements.
- Reach out to Wendy's about in-house financing for franchisees.
- If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $2,800,750 estimated opening costs.
- Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
- Once you settle on a lender, gather all required documents, including account statements and assets.
- Apply for financing online or in person as required by the lender.
What types of financing is available?You have several options when it comes to financing a Wendy's — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.
- Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
- Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Wendy's opening costs.
- SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.
Compare small business lendersYou may not need financing to cover the estimated $1,893,500. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How Wendy's stacks upCompare how Wendy's holds up against two similarly sized franchises.
|Dairy Queen||Wendy's||Choice Hotels|
|Average Franchise fees||NA||NA||NA|
|Average Equipment fees||$460,000||$497,500||NA|
|Average Real estate fees||$761,250||$1,877,500||NA|
|Average Training fees||$48,145||$63,000||NA|
|Average Inventory fees||$25,000||$13,000||NA|
|Average Marketing fees||NA||$8,750||NA|
|Average Licenses and permits fees||$10,500||$92,500||NA|
|Average Insurance fees||NA||$22,500||NA|
|Average Admin fees||$4,500||$55,000||NA|
|Average Personnel fees||NA||NA||NA|
|Average Other fees||NA||$171,000||NA|
Bottom lineWendy's franchise costs run a total of $2,800,750. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing read our guide to franchise financing.
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