Wendy's 2011 Annual Report Download - page 41

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Canadian Lease Guarantee Program
Wendy’s Canadian subsidiary has established a lease guarantee program to promote new franchisee unit
development for up to an aggregate of C$5.0 million for periods of up to five years. Franchisees pay the Canadian
subsidiary a nominal fee for the guarantee.
Japan Joint Venture Guarantee
In 2012, Wendy’s Restaurants (1) provided a guarantee to a lender to the Japan joint venture for which our
joint venture partner has agreed to reimburse and otherwise indemnify us for his 51% share of the guarantee and
(2) has agreed to reimburse and otherwise indemnify our joint venture partner for our 49% share of the guarantee by
our joint venture partner of a line of credit granted by a different lender to the Japan joint venture to fund working
capital requirements. Our portion of these contingent obligations totals approximately $2.9 million (¥220.8 million)
based upon current rates of exchange. The fair value of our guarantees is immaterial. The Companies anticipate that
additional guarantees of up to $5.0 million may be necessary in 2012.
Presentation of Financial Information
The Companies report on a fiscal year consisting of 52 or 53 weeks ending on the Sunday closest to
December 31 and are referred to herein as (1) “the year ended January 1, 2012” or “2011,” which consisted of 52
weeks, (2) “the year ended January 2, 2011” or “2010,” which consisted of 52 weeks and (3) “the year ended
January 3, 2010” or “2009,” which consisted of 53 weeks. All references to years and quarters relate to fiscal periods
rather than calendar periods. Certain percentage changes between these years are considered not measurable or not
meaningful (“n/m”).
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