Headquartered in Dublin, Ohio, Wendy’s is an iconic American international quick service restaurant chain founded by Dave Thomas with over 6,700 owned and franchised locations around the globe. With average annual unit sales up to $1.61 million, Wendy’s CEO predicted that the fast-food restaurant organization will reach a brand value of $12 billion by 2020. Currently, Wendy’s physical footprint includes locations in North America, South America, Asia, and Oceania.
As the quick service giant has continued to expand both its North American and international footprints, they faced challenges finding a lease administration tool that could effectively manage the rent payments and critical dates of thousands of leases, and one that could give them a holistic view of their extensive network of franchise leases. As the deadline for public companies loomed, achieving and maintaining long-term compliance to the FASB ASC 842 standard was also a major concern. As a diligent, IT-driven organization, Wendy’s began to search around for an enterprise solution that could streamline their lease administration and accounting strategy and assist in their ambitious domestic and overseas growth.
During the sales process, Wendy’s vetted numerous Lease Administration & Lease Accounting software companies, including Tango. Ultimately, Tango’s expertise as well as the software’s ability to address unique challenges, such as bifurcated leases, resulted in Wendy’s selecting Tango. Wendy’s also wanted a partner in their lease strategy, not just a vendor, and Tango’s high touch approach to customer relationships was a difference-maker.
After creating a detailed strategy to address all of Wendy’s concerns and pain points, implementation resulted in a solution that satisfied the restaurant company’s sophisticated requirements. For example, because the majority of Wendy’s locations are franchised, this meant double the number of leases. Tango partner Jackson Cross Partners shipped, coded and scanned over 6,000 paper files and then abstracted all the leases to give this global organization the depth of data required to drive optimal decision-making.
Thanks to Wendy’s relationship with Tango, they have continued to innovate and streamline countless lease administration and lease accounting processes across the company. They have systematic and auditable disclosure reporting for FASB ASC 842, and reported under the system in Q1 of 2019. All payable and receivable transactions have been migrated to a single system, drastically improving efficiency and turnover time. Tango also facilitated integration with Oracle Financials for improved rent payment and collections.
The FASB ASC 842 deadline for private companies is fast approaching, but there is still time to ensure compliance if you focus on the right things.
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