Wendy's vs Fatburger Franchise Comparison

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

Start-Up Costs and Fees
	Wendy's Franchise	Fatburger Franchise
Investment	$318,850 - $3,689,350	$498,100 - $850,600
Franchise Fee	$40,000	$50,000
Royalty Fee	4%	6%
Advertising Fee	3.5%Nat'l +0.5% Local	2%
Year Founded	-	1952
Year Franchised	-	1990
Term Of Agreement	-	5 Year
Term Of Agreement	-	5 Year
Renewal Fee	-	-
Business Experience Requirements
	Wendy's Franchise	Fatburger Franchise
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.	* Net Worth: $1,500,000.00 * Liquidity: $500,000.00 * For multi-unit deals, must meet all FCCR and capital requirements * Financial resources to support the business with debt/equity when necessary * Ability to develop additional restaurants (if required) * Excellent personal/professional and financial references * Clear credit and criminal background checks * Leadership standing in the community through participation with civic organizations * Understands the “business of running the business” * Sound business management skills * Mid-level entrepreneur spirit * Demonstrates leadership skills * Ability to manage and direct human resources under a proven system * Has an understanding of how to develop leadership skills on his/her team * Demonstrates a strong work ethic and a high level of integrity * Customer focused and responsive to customer needs * Possesses a strong decision-making ability * Effective communication skills * Ability to follow directions * Has a passion and enthusiasm for the business * Interested in working in a fast-paced and highly charged industry * Possesses a drive and desire to succeed
Financing Options
	Wendy's Franchise	Fatburger Franchise
	In-House/3rd Party	In-House/3rd Party
Franchise Fees	-/-	-/-
Start-up Costs	-/-	-/-
Equipment	-/-	-/-
Inventory	-/-	-/-
Receivables	-/-	-/-
Payroll	-/-	-/-
Training & Support
	Wendy's Franchise	Fatburger 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.	-Proper training is absolutely essential for maintaining a successful operation while maintaining the consistency and integrity of the Fatburger operation and brand. To that end, Fatburger sets rigorous standards for staff development. -Fatburger provides its franchisees with a detailed and comprehensive curriculum outlining how to operate their Fatburger business. Franchisees will receive thorough instructions in: Restaurant Operations Restaurant Management Safety and Health Local Store Marketing Site Selection -Every franchisee receives a set of Fatburger manuals containing the entire training program. These can be kept on hand for reference to direct your daily operations. They provide quick and convenient information -- answering franchisees questions regarding all operating procedures. -Following the development of the new site, Fatburger assists franchisees in planning their grand opening. When franchisees open their doors, the Fatburger corporate operations team will be there to make sure the grand opening is a successful one.
Support	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.	When franchisees join the Fatburger family, they receive the support provided by an organization committed to their success. Fatburger franchisees will also benefit from the experience of a professional management team. Fatburger has developed an effective, systematic process to get our franchisees up and running quickly. That includes architecture and design support, operational support, purchasing support, equipment selection support, training and recruitment support, advertising and marketing support, and real estate support.
Marketing	-	-No business can be successful without creative advertising and an intelligent marketing plan. To continually attract a diverse customer base, Fatburger advertising must react faster, be more daring, more innovative, and more focused on the specific community in which each location is situated. Fatburger's past experience has shown this is the only proven method to stay ahead of the competition. -Fatburger's flair for creative advertising and marketing sets us apart from other restaurants. The distinctive history, the L.A. roots, the world famous cooked-to-order burger, and the look and sound of the restaurants, all provide great opportunities for innovative marketing.
Operations	-	-
Expansion Plans
	Wendy's Franchise	Fatburger Franchise
US Expansion	-	-
Canada Expansion	No	-
International Expansion	No	-

Company Overviews

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.

About Fatburger

The now famous Fatburger Restaurant had humble beginnings many years ago in the spotless kitchen of Ms. Lovie Yancey. Her guests enjoyed her hamburgers so much that she was encouraged to share her unique recipe with the world. Ms. Yancey took their advice and opened her first restaurant in Los Angeles, in 1952. She called this restaurant "Fatburger," while her loyal customers called it, "The Last Great Hamburger Stand." Now, over 60 years later, the red and yellow sign still holds the same promise. A promise to serve customers a great hamburger prepared fresh daily at every location. Customers will never find a frozen or prefabricated Fatburger in our restaurants.

At Fatburger, we are proud to say that word of mouth has filled our restaurants for over 60 years. Demographically, our appeal is limitless. Our customers come from every walk of life, mirroring the diversity of every community in which we are located. Teenagers, families with young children, singles, senior citizens, and people from all income levels, and ethnic backgrounds love a great burger. They tell their friends and associates about the superb homemade taste, spotless surroundings, friendly atmosphere and courteous service that they experience at Fatburger Restaurants