Wendy's International (WEN)

AFA Service Corporation

As discussed in Note 1, effective October 3, 2005 the Company consolidates AFA, in which the Company has a significant variable interest as a result of a management services agreement (the “AFA Agreement”) with AFA effective that date. AFA is a cooperative that represents operators of domestic Arby’s restaurants and is responsible for marketing and advertising the Arby’s brand. Membership in AFA is compulsory for all domestic Arby’s operators, who pay a percentage of their monthly gross sales to AFA for such services. The Company does not have any assets that collateralize AFA’s obligations. Under the AFA Agreement, however, the Company is responsible for the excess, if any, of expenses over the higher of the actual or budgeted related fee revenue from the operators, although creditors and members of AFA have no recourse to the general credit of the Company and, as a result, the Company is considered the primary beneficiary of AFA.

The effect of the consolidation of AFA was an increase to each of consolidated assets and liabilities in the accompanying consolidated balance sheets of $5,587,000 as of January 1, 2006 and $5,770,000 as of December 31, 2006. In accordance with GAAP, the contributions to and expenses of AFA are both reported in, and accordingly offset in, “Advertising and promotions” in the accompanying consolidated statements of operations for the years ended January 1, 2006 and December 31, 2006 since the Company is acting in the capacity of an agent with regard to these contributions and expenses.

AFA Service Corporation

       As discussed in Note 1, the Company consolidates AFA, in which the Company has a significant variable interest as a result of a management services agreement (the “AFA Agreement”) the Company entered into with AFA effective October 3, 2005. AFA is a cooperative that represents operators of domestic Arby's restaurants and is responsible for marketing and advertising the Arby's brand. Membership in AFA is compulsory for all domestic Arby's operators, who pay a percentage of their monthly gross sales to AFA for such services. The Company does not have any assets that collateralize AFA's obligations. Under the AFA Agreement, however, the Company is responsible for the excess, if any, of expenses over the higher of the actual or budgeted related fee revenue from the operators, although creditors and members of AFA have no recourse to the general credit of the Company.

       The effect of the consolidation of AFA was an increase to each of consolidated assets and liabilities of $5,587,000 in the accompanying consolidated balance sheet as of January 1, 2006. In accordance with accounting principles generally accepted in the United States, the contributions to and expenses of AFA are both reported in, and accordingly offset in, “Advertising and selling” in the accompanying consolidated

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

statement of operations for the year ended January 1, 2006 since the Company is acting in the capacity of an agent with regard to these contributions and expenses.