EXECUTIVE SUMMARY

The following report contains information related to the franchiseopportunity identified in the United States international fast foodchain restaurant called Wendy's. We select Colombia as yourdestination and specifically Barranquilla as the indicated city.

Being one of the major cities and the fourth most populous inColombia, Barranquilla has a privileged geographical location whichmakes it the largest commercial provider of the ColombianCaribbean. This city also has an excellent port infrastructure thatmakes it the second region of the country with more foreign directinvestment and it has the support of a government agency which isresponsible for strengthening the cities’ foreign investment.

Although there are many business options, a franchise with a wellknown company represents more income opportunities abroad.Wendy's is the fourth largest franchise in the world, so we can knowfor sure that this is going to be a real success for the company and itsgoals.

In this investment your minimal cost may be $1,000 dollars, but youwill be receiving huge amounts of money in sales. For make a realfranchise project, Colombian Investments will provide $250 dollars.

Then, we present you a clear business idea that includes details of thefranchise model, the chosen city, the nature of the business, financialrequirements, the advantages and disadvantages of this franchise andexpected results.

The investigation seeks:

• Show that a franchise is the best option to enter into a new business ventures,

given that it has low risks and rapid growth.

• Present the reasons of why Wendy’s franchise represents a good investment

option.

PURPOS

E

This research was made to identify a new investment option for

Colombian Investments that will provide more incomes and business

opportunities especially in Barranquilla.

Wendy's is an international fast

food chain restaurant founded by Dave Thomas on November 15, 1969,

in Columbus, Ohio, United States

BACKGROUN

D

MENU

Wendy's menu consists primarily of hamburgers, chicken

sandwiches, French fries and beverages, including the Frosty.

Why franchise is a good idea?

The system theory states that

franchises are a formula to grow

quickly, with less risk and less

capital for both; the business

entrepreneur who is the owner of

the business concept or the

entrepreneur who engages in it.

This is a type of business that has achieved the position it has through

the professional structuring of a support center, which is responsible for

developing permanent network of franchised business, which gets a

clear marketing strategic guidelines for the efficient economic operation

and surveillance concept.

This should be seen as a true business scheme that in

practice goes beyond the simple act of giving a brand

franchise, because this concept bring an integrated model

that includes service, experience, operation and marketing

that are part of the brand.

An established franchise enjoys a recognized name,

a brand, which makes the business of the franchisee

start with a reputation gained in advance.

products place

promotion price

MARKETING

MIX

HAMBURGERS SALADS

Bacon portobella melt on brioche Asian cashew chicken full side

Pulled pork cheeseburger Asian cashew chicken half side

Dave’s hot’n juicy BBQ ranch chicken full side

Pretzel bacon cheeseburger BBQ ranch chicken half side

Baconator Apple pecan chicken full side

Son of baconator Apple pecan chicken half side

Pulled pork sandwich Spicy chicken Caesar full side

Asiago ranch chicken club Spicy chicken Caesar half side

Spicy chicken sandwich

Grilled chicken wrap

Crispy chicken wrap

Nuggets 4, 6, 10

PlaceWendy´s is located in 27 countries aroundthe world with approximately 6,650stores.It will be located in the north ofBarranquilla; it surrounds one of thebiggest malls of the city, in order to takeadvantage of the place and the peoplewho visit the mall.

PromotionAdvertising: radio, TV, newspapers,internet and magazines.Sales promotions: discounts.Social media: Instagram, facebook,twitter and YouTube.

PriceIt is necessary to take into account the costswhich the new franchise will incur andaccording to the prices will be ruled underthe same margin that the one that operatesin the principal store.

SWOT ANALYSIS OF WENDY’S

FINANCIAL

REQUIREMENTSType of Fee Low High

Application Fee $5,000 $5,000

Training Expenses $26,000 $100,000

Initial Technical Assistance Fee $25,000 $25,000

Real Estate, Permits, Construction of Standard

Prototype Restaurant and Site Improvements:

Cash Purchase

Financing (3 mos.)

Leasing (3 mos.)

$1,190,000

$274,000

$24,000

$2,401,000

$540,000

$48,500

Equipment and Signage:

Cash Purchase

Financing (3 mos.)

Leasing (3 mos.)

$527,000

$23,500

N/A

$600,000

$26,500

N/A

Opening Inventory and Supplies $10,000 $14,000

Additional Funds - 3 Months $150,000 $175,000

Grand Opening Advertising $7,500 $10,000

Security Deposit, Utilities, Licenses and Other

Prepaid Expenses$20,000 $65,000

Insurance Cost $10,000 $35,000

ESTIMATED TOTAL:

If you finance the Land, Building, Improvements,

Equipment and Signage

$551,000 $995,500

Initial Investment:

Type of Fee Amount

Royalty Greater of 4% of Gross Sales or $1,000 per month.

National Advertising 3.25% of Gross Sales.

Local and Regional Advertising .75% of Gross Sales.

Additional Training Will vary under circumstances.

Transfer $5,000

RenewalAn amount which is not greater than 25% of the then-current

Technical Assistance Fee.

AuditCosts and expenses of audit, including travel, lodging, wages,

accounting and legal costs, and interest on any understated amount.

Late Fee/Interest

$100 plus interest on the overdue amount from the date it was due

until paid, at the

(i) rate determined by Wendy's, or

(ii) maximum legal rate, whichever is less.

Costs and Attorney's Fees Will vary

Indemnification Will vary

Review of Proposed Offering Materials of Franchisee$10,000 or a greater amount necessary to reimburse Wendy's for its

legal, accounting, and other costs.

Other Fees:

DIRECT COMPETITORS OF WENDY’S

Year Company # stores Annual revenues

2013 McDonald’s 35.000 $28,1B dollars

2013 Burger King 12.000 $1.15B dollars

2013 El corral 207 $150.000M dollars

2013 Presto 95 $28.000M dollars

Wendy’s has 6.650 stores and its annual revenues are $2,5B dollars.

•Advantages

•Disadvantages

CONCLUSIONS AND

RECOMMENDATIONSThere are plenty of franchise

opportunities for people to

choose from, but few offer

as much earnings as

wendy’s does. Wendy’s

charges 4% royalty,

compared to an 8% from

subway and 12% from Mc

Donald’s. Wendy’s is not just

another hamburger place;

the American hamburger

chain cares about the quality

of their products, their

customer needs and

customer satisfaction. Old

fashioned hamburgers from

The restaurant’s most popular ad campaign

“Where’s the Beef?” wants to emphasize on the

quality and size of the meat. After analysing the

results of the research, we can conclude that

Wendy’s is an excellent franchise option and it is

the most profitable and low cost franchise

compared to its competitors or similar franchises.

The incursion into Colombian market will help the

THANK YOU