Krystal Restaurants vs Wendy's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Krystal Restaurants vs Wendy's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
	Krystal Restaurants Franchise	Wendy's Franchise
Investment	$900,000 - $1,300,000	$318,850 - $3,689,350
Franchise Fee	$32,500	$40,000
Royalty Fee	4.5%	4%
Advertising Fee	-	3.5%Nat'l +0.5% Local
Year Founded	1932	-
Year Franchised	1990	-
Term Of Agreement	20 years	-
Term Of Agreement	20 years	-
Renewal Fee	$8.1K	-
Business Experience Requirements
	Krystal Restaurants Franchise	Wendy's Franchise
Experience	Industry experience General business experience	Wendy's is actively pursuing prospective franchisees who: * Are interested in pursuing multi-unit opportunities through the acquisition of existing restaurants or the development of new restaurants * Are multi-unit operators who have extensive restaurant experience (preferably quick service) with proven leadership skills * Are committed to operational excellence, customer service and a strong willingness to learn and practice the Wendy's business model * Demonstrate exceptional managerial and business acumen * Are committed to the advancement and growth of their business * Have access to adequate capital for reinvestment in Wendy’s Image Activation program and new restaurant development.
Financing Options
	Krystal Restaurants Franchise	Wendy's Franchise
	In-House/3rd Party	In-House/3rd Party
Franchise Fees	No/No	-/-
Start-up Costs	No/Yes	-/-
Equipment	No/Yes	-/-
Inventory	No/Yes	-/-
Receivables	No/No	-/-
Payroll	No/No	-/-
Training & Support
	Krystal Restaurants Franchise	Wendy's Franchise
Training	-	Initial and on-going manager and crew level training programs focus on what is needed to provide Wendy’s “A Cut Above” total customer experience as well as providing management training on various business skills.
Support	Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives	Franchisees receive on-going direct support from our skilled operators at the field level. We strive for A-level operations at every restaurant and provide the tools, resources and training to achieve superior customer service levels while maintaining restaurant level profit margins.
Marketing	Co-op advertising, Ad slicks, Regional advertising	-
Operations	Franchisees required to buy multiple units/master licenses; 94% of all franchisees own more than one unit Number of employees needed to run franchised unit: 30 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)	-
Expansion Plans
	Krystal Restaurants Franchise	Wendy's Franchise
US Expansion	Yes	-
Canada Expansion	No	No
International Expansion	No	No

Company Overviews

About Krystal Restaurants

The Krystal Company is the oldest quick service restaurant chain in the South and the second oldest in the United States. The Chattanooga-based company currently has more than 450 restaurants in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. Founded in 1932, Krystal restaurants have become more than sparkling-clean eateries where friendly employees serve up fresh, delicious food. Krystal has become a cultural icon and an experience that virtually every man, woman and child in the South has shared. Nearly everyone in the region has a Krystal memory. The Krystal brand, and the great food, service, value and setting which it represents, has taken a prominent place in the South's cultural landscape.

About Wendy's

Wendy's is a chain of fast food restaurants based in Dublin, Ohio and owned by the United States corporation Wendy's International, Inc. There are over 6,600 Wendy's restaurants worldwide. The chain is famous for its chili. Also, it is known for its Frosty dairy desserts, the fact that their burgers are square, its fresh and never frozen ground beef, and its making of all sandwich items to order. Unlike most fast food chains, Wendy's historically did not serve breakfast, except for stores in Puerto Rico. Wendy's tried serving breakfast in the mid-1980s, but the endeavor quickly failed. However, they have reformulated their breakfast menu recently and are now serving breakfast in many locations. Wendy's was founded by Dave Thomas in 1969 and named after his 8-year old daughter, Melinda, who had the nickname of "Wendy." The corporate headquarters is located in Dublin, Ohio. The first Wendy's restaurant was opened in Columbus, Ohio on November 15, 1969, and grew rapidly to open over 3,000 stores by 1985. However, by the mid-1980s some Wendy's restaurants became underperforming and closed. By 1989, Dave Thomas came out of retirement and started doing commercials for Wendy's and helped rebuild the restaurant until his death. After international expansion in the 1980s, the chain retrenched in the late 1990s. In 1999 it pulled out of London and Hong Kong (its Hong Kong branch was located on Lockhart Road in Wan Chai). In 1995, Tim Hortons' popularity had spilled over to American investors; the chain's parent company, The TDL Group ("TDL" stands for the original corporate name "Tim Donut Ltd."), was acquired by Wendy's International, Inc.. As a result, Ron Joyce, Tim Horton's partner and first franchisee, was, for a time, the largest shareholder of Wendy's.

• Minimum net worth of at least $5,000,000 U.S. ($2,000,000 Canada).
• Minimum liquid assets of at least $2,000,000 U.S. ($1,000,000 Canada).

The total investment necessary to begin operation of a Wendy’s Restaurant will vary depending upon whether the property is purchased for cash, financed or leased, as well as other factors, but it normally ranges from $1,893,850 to $3,689,350 if you purchase for cash, $565,850 to $1,131,350 if you finance, and $318,850 to $643,850 you lease (see Item 7). This includes an amount between $0-$55,000 that must be paid to the franchisor or its affiliates.