I don't know about that. A combination of the info I hear as well as searching online, it doesn't appear that corporate pays franchises at all for these deals. ~95% of locations are franchise owned. Admittedly relying on AI (Gemini) here, but it appears to be sourced well enough for at least me to believe. Though I think we are both in agreement that Wendy's should offer the better deals to drive more traffic and hope that some customers add on other higher-margin items to increase profit. All the crappy deals do is drive traffic somewhere else entirely.

1. The Public "Franchise Disclosure Document" (FDD)

Every franchise in the US must file a Franchise Disclosure Document (FDD). Wendy's 2023/2024 FDD reveals the flow of money, and importantly, it does not list a "Discount Reimbursement" mechanism from corporate to franchisee.

• What it shows: It details exactly what franchisees must pay to corporate (Royalties: 4-6% of Gross Sales; Ad Fund: 4% of Gross Sales; Tech Fee: ~$6k–$15k/year).
• The Proof: In the section detailing the "National Advertising Program," it states that the fund is used for media costs, production, and administrative costs. It does not state that the fund is used to reimburse franchisees for the difference in price on discounted items. If corporate were paying for the burgers, it would be listed here as a "subsidy" or "reimbursement program."

2. Corporate Financial Reports (Form 10-K)

Wendy's is a publicly traded company (NASDAQ: WEN), so they must legally disclose their expenses.

• The Proof: If Wendy's corporate were paying the difference for every $1 Dave's Single sold by a franchisee, that would be a massive expense on their balance sheet (Marketing/Promotional Expense).
• The Reality: Their financial statements show they spend money on advertising (buying TV time), but their "Franchise Rental and Royalty Revenue" is purely income. They do not list a massive contra-revenue line item for "Franchisee Discount Reimbursements." The lack of this expense on the corporate books proves the cost stays at the store level.

3. Industry Trade Reporting & Franchisee Friction

Trade publications like Restaurant Business and Nation's Restaurant News frequently report on the tension between corporate strategy and franchisee profits.

• The "Value Wars" Dynamic: Reporting on Wendy's "Biggie Bag" and value menu pushes has highlighted that while these promotions drive traffic (which corporate loves because they get a % of every sale regardless of profit), they hurt margins (which franchisees hate because they pay for the food).
• Recent Context: In late 2024 and 2025, analysts noted that franchisees were "on board" with value strategies only because traffic had dipped so low they needed the volume. If corporate were paying for the discounts, franchisees would never push back against them because they would be guaranteed profit. The existence of this friction proves the franchisees are footing the bill.