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WEN » Topics » Our restaurant business is significantly dependent on new restaurant openings, which may be affected by factors beyond our control.This excerpt taken from the WEN 10-K filed Mar 1, 2007. Our restaurant business is significantly dependent on new restaurant openings, which may be affected by factors beyond our control. Our restaurant business derives earnings from sales at company-owned restaurants, franchise royalties received from all Arby’s restaurants and up-front fees from restaurant operators for each new unit opened. Growth in our restaurant revenues and earnings is significantly dependent on new restaurant openings. Numerous factors beyond our control may affect restaurant openings. These factors include but are not limited to:
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• the availability of construction materials and labor; • construction and development costs of new restaurants, particularly in highly-competitive markets; • the ability of restaurant owners to secure required governmental approvals and permits in a timely manner, or at all; and • adverse weather conditions. Although as of December 31, 2006, franchisees had signed commitments to open 295 Arby’s restaurants over the next six years and have made or are required to make non-refundable deposits of $10,000 per
restaurant, we cannot assure you that franchisees will meet these commitments and that they will result in open restaurants. See “Item 1. Business—Business Segments—Restaurant Franchising and Operations
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