Dive Brief:

• Flynn Group has acquired 32 Wendy’s restaurants, bringing its total Wendy’s unit count to 309, according to a press release emailed to Restaurant Dive. Flynn has purchased or opened 116 Wendy’s in 2024. It bought 83 Wendy’s in New Jersey and Pennsylvania earlier this year.
• The purchased units are located in and around Indianapolis, where Flynn Group already operates a number of Applebee’s and Taco Bells. This will be the first time Flynn Group has operated a Wendy’s in this market.
• The Flynn Group has become one of Wendy’s key franchisees since buying into the burger brand’s system in 2021. In addition to its roughly 300 domestic Wendy’s, which comprise about 5% of the chain’s U.S. footprint, Flynn is also the master franchisee for the chain in Australia and New Zealand.

Dive Insight:

Wendy’s has sought to attract franchisees interested in developing new units by adding several incentives. According to its franchise disclosure document, Wendy’s franchisees are set to begin a new cycle of renovation and reimaging in 2025. 

As part of the current cycle of store overhauls, Wendy’s offered options ranging from full remodels to a package of changes called “Refresh Lite” that is targeted specifically at low unit volume locations. The cost to remake its stores varies widely, ranging from $150,000 to over $2.5 million depending on upgrades and reimage design chosen, per the FDD.

The chain is also looking to build more of its Global Next Gen stores. It already requires U.S. new builds to include the interior design and kitchen equipment elements of that prototype.

It will be useful to Wendy’s to have larger, better capitalized operators in place to undertake such projects, given the difficulty even temporary disruptions to operations pose for smaller franchisees. 

Flynn operates more than 2,900 retail locations across six restaurant brands and one gym chain, according to its website. This means it could be of aid to Wendy’s as a franchisee, given its scale and access to capital. Likewise, major franchisee Delight Group recently announced it would buy 65 more stores. 

In addition to its Wendy’s buyouts, Flynn Group has added other units across its portfolio recently. In September, it acquired 13 Panera restaurants in Virginia, its first stores with that brand in the Commonwealth, according to an emailed press release. In April, the operator bought 26 Applebee’s units in Florida and Georgia and announced plans to build 25 more.