Wendy's Franchise Cost and Profits in 2026

By FDDIQ Research Team | April 2026

Based on 2025 FDD Filing

Quick Summary

$50,000

Franchise Fee

$2.3M

Midpoint Investment

6.0%

Total Fees

$2.0M

Median Revenue

-75

Net Closed

Cost Breakdown

Fee	Amount
Franchise Fee	$50,000
Total Investment Range	$1.5M - $3.0M
Midpoint Investment	$2.3M
Royalty Rate	6.0%
Advertising Fund	0.0%
Total Ongoing Fees	6.0%

Revenue and Profit Analysis

The median Wendy's franchise generates $2.0M in annual revenue. With estimated margins of 13%, that is approximately $257,969 in annual EBITDA.

Revenue per dollar invested: 0.88x.

Unit Count

Wendy's has 5,627 franchised units. Lost 75 net units (-1.3% decline).

SBA Loan Performance

SBA default rate: 0.0% across 55 loans. This is below the franchise industry average (~7-8%).

Key Risk Factors

Declining unit count (75 net closures)

Frequently Asked Questions

How much does a Wendy's franchise cost?

A Wendy's franchise requires a $50,000 franchise fee with total investment ranging from $1.5M to $3.0M. The midpoint investment is approximately $2.3M.

How much do Wendy's franchise owners make?

Based on the most recent FDD, the median Wendy's location generates $2.0M in annual revenue. With estimated industry margins of 13%, that translates to approximately $257,969 in EBITDA before debt service.

What is the Wendy's royalty rate?

Wendy's charges a 6% royalty on gross sales plus a 0.0% advertising fund, for a total ongoing fee burden of 6.0%.

Is a Wendy's franchise worth it?

Whether Wendy's is worth it depends on your market, experience, and financial goals. Key concerns include declining unit count (75 net closures). The brand has been contracting with 75 net closures. The SBA loan default rate is 0.0%. Review the latest FDD thoroughly and validate with existing franchisees before investing.

What is the Wendy's franchise SBA loan default rate?

Based on SBA loan data, Wendy's has a 0.0% default rate across 55 loans. This is below the overall franchise industry average.

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Detailed financial data, Item 20 outlet counts, litigation history, and more.

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