Wendy's International (WEN)

18. Commitments and Contingent Liabilities

Pending court approval, the Group has reached a settlement with a third party regarding the accessibility of the Group’s restaurants to individuals in accordance with the Americans with Disabilities

27

RTM Restaurant Group
May 29, 2005
Notes to Combined Financial Statements (continued)
(In Thousands, Except Share and Per Share Amounts)

18. Commitments and Contingent Liabilities (continued)

Act. The Group estimates it will make capital expenditures and pay related fees aggregating approximately $9,000 over the next 8 years to meet the requirements of the settlement.

Standby letters of credit primarily relate to workers’ compensation insurance and are issued to provide collateral to insurance companies, states or municipalities. In the event the Group fails to pay insurance claims, the issuing bank may be asked to release some or all of this collateral to the insurance company, state or municipality. As of May 29, 2005, such standby letters of credit totaled $5,800.

As of May 29, 2005, the Group had guaranteed leases of $7,072 related to Arby’s restaurants previously operated by the Group.

18. Commitments and Contingent Liabilities

      Pending court approval, the Group has reached a settlement with a third party regarding the accessibility of the Group's restaurants to individuals in accordance with the Americans with Disabilities Act. The Group estimates it will make capital expenditures and pay related fees aggregating approximately $9,000 over the next 8 years to meet the requirements of the settlement.

      Under its development agreement with Arby's Restaurant Group (“ARG”), the Group has agreed to develop 204 more Arby's restaurants by December 31, 2010, with specific annual commitments for each calendar year until that time. The Group's commitment may be reduced for each restaurant developed by another franchisee in the Group's territories.

      Standby letters of credit primarily related to workers' compensation insurance are issued to provide collateral to insurance companies, states or municipalities. In the event the Group fails to pay insurance claims, the issuing bank may be asked to release some or all of this collateral to the insurance company, state or municipality. As of March 6, 2005, such standby letters of credit totaled $5,800.

      As of March 6, 2005, the Group had guaranteed leases of $8,168 related to Arby's restaurants previously operated by the Group.