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Wendy's predicts $475M in franchise sales

Franchise sales are expected to bring the company $400 million to $475 million.

February 10, 2015

Wendy's Co. announced plans to open 1,000 new restaurants within the next five years, with corporate's role diminishing as the company prepares to sell another 500 restaurants to franchisees in the next 18 months, according to Biz Journals.

The company's ultimate goal is to own only 5 percent of the entire chain which is at 6,515 units total with 6,112 in North America. Before the sales began in 2012, Wendy's owned around 23 percent of its stores.

CEO Emil Brolick explained in an annual company investor meeting that sales to franchisees is a way to grow the business while saving corporate operating and labor expenses, creating a more predictable source of royalties and rent.

Franchise sales are expected to bring the company $400 million to $475 million.