The underlying asset is typically a 4,000+/- SF building with a drive-thru window, situated on .5 - 1.0 acre of land. It is important to note that Wendy's franchises the majority of its locations. There are a number of various lease agreements and guarantors operating under the Wendy's banner. As a result, lease terms vary as do cap rates based on the size and strength of the operator and sales at a particular location. Generally the lease term is 20 years with 4 five year options with increases of 10% every 5 years.

Wendy's is engaged in the quick-service restaurant (QSR) business, operating, developing and franchising Wendy's restaurants. Te revenues from its restaurant business are derived from four principal sources: sales at Wendy's-owned restaurants; sales of bakery items and kid's meal promotional items to franchisees; franchise royalties received from all Wendy's franchised restaurants, and up-front franchise fees from restaurant operators for each new unit opened.

Each Wendy's restaurant offers a relatively standard menu featuring hamburgers and filet of chicken breast sandwiches and wraps, which are prepared to order with the customer's choice of condiments. Wendy's menu also includes chicken nuggets, chili, baked and French fried potatoes, freshly prepared salads, soft drinks, milk, Frosty desserts, floats and kids meals.