Wendy’s Grants Longer Royalty Payment Time, 50% Rent Deferment to Franchisees
With its franchisees contending with a 20% sales plunge since COVID-19 began spreading rapidly across the U.S., Wendy's (NASDAQ: WEN) is extending the time available for restaurant operators to pay their fees and rent to the company. It currently intends to offer the extensions during the next three months in an effort to give franchisees some breathing room while the pandemic disrupts the economy.
Image source: Wendy's.
Royalties and marketing funds, today's announcement said, will have their payment terms extended by 45 days during the three-month COVID-19 response period. Those franchisees who are leasing restaurant space owned directly by Wendy's will have rental payments deferred by 50% over the same interval. The company is currently negotiating on behalf of its franchisees to get extra support from regular franchise lenders.
Source Fool.com
