Coalition of Franchisee Associations

November 1, 2024

Wendy's to Close 140 Stores

Attempting to Convince Shareholders that QSRs are a Growth Industry

* In most chains, new stores typically pay higher franchise fees and royalties than older stores.

* As Wendy's has acquired many franchisees over the years, the corporation has likely developed a real estate portfolio that needs trimming. In many locations, a QSR is not the highest and best use of a property. Wendy's (and other chains) can close the store, sell the property, and book a tidy gain. Let the franchisee pay to build a new store down the street and pay higher fees.

Wendy's to close 140 restaurants

2 comments:

Anonymous said...

this is what happens when you raise the minimum wage so high for an entry level job. These jobs are not meant to raise a family unless you become management after showing you have the skills.

Richard Adams said...

The danger is that the minimum wage was a training wage meant for young or unskilled people. Politicians have been successful in changing it to a "living wage." Now, anytime a politician wants to win over a crowd of voters, they will promise an increase in the "living wage."
Not only will that destroy many businesses, but could there be anything more inflationary?
A higher "living wage" sounds good, but few politicians have any economic sense, and only a tiny fraction have ever run a business.
.