According to the Nation Restaurant News, Wendy's is on the block and the franchisees are in the dark.
"Some Wendy's franchisees said Tuesday they were unprepared for chairman Nelson Peltz's possible plans to sell Wendy's/Arby's Group Inc., and fear it may become another distraction for the struggling chain.
Peltz, who leads Trian Management, a fund that holds a 23.5-percent stake in Atlanta-based Wendy's/Arby's, disclosed last week that he had received an expression of interest surrounding an acquisition of the parent restaurant company.
Peltz said in a filing with securities regulators that he was entertaining the offer by an unnamed third party and would further explore the possibility of a potential sale.
Roger Webb, chairman of Wendy's Old Fashioned Franchise Association, which represents more than 2,100 of the chain's more than 6,000 locations, told Nation's Restaurant News that the group had no idea Peltz, who purchased Wendy's in 2008 in a long takeover battle, was entertaining an offer to sell the company."
This is hard to understand, Peltz bought in order to sell. From day one, the Old Fashioned Franchise Association should have made it a priority to educate their members about this possibility and prepare the group for some coordinated action.
As reported in BMM, John Gordon, principal of Pacific Management Consulting Group, a research and consulting firm for the restaurant industry, expounds,
"Principals will be much more comfortable if the franchisees are onboard and won't be kicking and fighting when the new owners take over."
OFFA's website provides no details or even links to any industry analysts about this, nor is there even a link to their sister franchisee association at Arby's.
It is difficult to see how the Wendy's franchisee are going to coordinate their actions without a public presence. See also the discussion at BMM about the Wendy's sale, click here.
