Wendy's International (WEN)

Advertising Costs

The Company incurs various advertising costs, including contributions to certain advertising cooperatives based upon a percentage of net sales by Company-owned restaurants. The Company accounts for contributions made by the Company-owned restaurants to advertising cooperatives as an expense the first time the related advertising takes place for those advertising cooperatives that are consolidated by the Company or as an expense when the related net sales are recognized for those respective advertising cooperatives that are not consolidated by the Company. In addition, through 2005 the Company made certain contributions to AFA, which were not dependent on net sales, specifically as part of a national cable television advertising campaign, which were also expensed the first time the related advertising took place. All other advertising costs are expensed as incurred. Substantially all of the “Advertising and promotions” expenses in the accompanying consolidated statements of operations for 2004, 2005 and 2006 represent advertising costs.

Advertising Costs

       The Company incurs various advertising costs, including contributions to certain advertising cooperatives based upon a percentage of net sales of Company-owned restaurants. Except as noted below, the Company accounts for contributions made related to the Company-owned restaurants to advertising cooperatives as expense when the related net sales are recognized for those respective advertising cooperatives that are not consolidated by the Company or as an expense the first time the related advertising takes place for those advertising cooperatives that are consolidated by the Company. In addition, the Company makes certain

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Triarc Companies, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
January 1, 2006

contributions to AFA, which are not dependent on net sales, specifically as part of a national cable television advertising campaign, which are also expensed the first time the related advertising takes place. All other advertising costs are expensed as incurred. Substantially all of the “Advertising and selling” expenses in the accompanying consolidated statements of operations for 2003, 2004 and 2005 represent advertising costs.