Wendy's 2008 Annual Report Download - page 33

Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
We believe that our properties, taken as a whole, are generally well maintained and are adequate for our
current and foreseeable business needs.
The following table contains information about our material facilities as of December 28, 2008:
Active Facilities Facilities—Location Land Title
Approximate
Sq. Ft. of
Floor Space
Corporate and Arby’s Headquarters .......... Atlanta, GA Leased 184,251*
Former Corporate Headquarters ............. New York, NY Leased 31,237**
Wendy’s Corporate Headquarters ............ Dublin, OH Owned 249,025
Wendy’s Restaurants of Canada Inc. ......... Oakville, Ontario Canada Leased 35,125
* ARCOP, the independent Arby’s purchasing cooperative, and the Arby’s Foundation, a not-for-profit
charitable foundation in which ARG has non-controlling representation on the board of directors, sublease
approximately 2,680 and 3,800 square feet, respectively, of this space from ARG.
** The Management Company subleases approximately 26,600 square feet of this space from us.
At December 28, 2008, Wendy’s and its franchisees operated 6,630 Wendy’s restaurants. Of the 1,406
company-owned Wendy’s restaurants, Wendy’s owned the land and building for 629 restaurants, owned the
building and held long-term land leases for 585 restaurants and held leases covering land and building for 192
restaurants. Wendy’s land and building leases are generally written for terms of 10 to 25 years with one or
more five-year renewal options. In certain lease agreements Wendy’s has the option to purchase the real estate.
Certain leases require the payment of additional rent equal to a percentage, generally less than 6%, of annual
sales in excess of specified amounts. Wendy’s also owned land and buildings for, or leased, 192 Wendy’s
restaurant locations which were leased or subleased to franchisees. Surplus land and buildings are generally held
for sale.
The Bakery operates two facilities in Zanesville, Ohio that produce hamburger buns for Wendy’s
restaurants. The hamburger buns are distributed to both company-owned and franchised restaurants using
primarily the Bakery’s fleet of trucks. As of December 28, 2008 the Bakery employed approximately 342
people at the two facilities that had a combined size of approximately 205,000 square feet.
As of December 28, 2008, Arby’s and its franchisees operated 3,756 Arby’s restaurants. Of the 1,176
company-owned Arby’s restaurants, ARG owned the land and/or the buildings with respect to 138 of these
restaurants and leased or subleased the remainder. As of December 28, 2008, ARG also owned 15 and leased
93 properties that were either leased or sublet principally to franchisees. Our other subsidiaries also owned or
leased a few inactive facilities and undeveloped properties, none of which are material to our financial condition
or results of operations.
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