This excerpt taken from the WEN 10-K filed Mar 1, 2007.
Arbys franchisees could take actions that could harm our business.
Arbys franchisees are contractually obligated to operate their restaurants in accordance with the standards ARG sets in its agreements with them. ARG also provides training and support to franchisees. However, franchisees are independent third parties that ARG does not control, and the franchisees own, operate and oversee the daily operations of their restaurants. As a result, the ultimate success and quality of any franchise restaurant rests with the franchisee. If franchisees do not successfully operate restaurants in a manner consistent with ARGs standards, the Arbys image and reputation could be harmed, which in turn could hurt ARGs business and operating results.