Guarantees and Other Commitments and Contingencies

3 Months Ended

Mar. 29, 2020

Commitments and Contingencies Disclosure [Abstract]

Guarantees and Other Commitments and Contingencies

Guarantees and Other Commitments and Contingencies

Except as described below, the Company did not have any significant changes in guarantees and other commitments and contingencies during the current fiscal period since those reported in the Form 10-K. Refer to the Form 10-K for further information regarding the Company’s additional commitments and obligations.

Lease Guarantees

Wendy’s has guaranteed the performance of certain leases and other obligations, primarily from former Company-operated restaurant locations now operated by franchisees, amounting to $77,811 as of March 29, 2020. These leases extend through 2045. We have not received any notice of default related to these leases as of March 29, 2020. In the event of default by a franchise owner, Wendy’s generally retains the right to acquire possession of the related restaurant locations.

Letters of Credit

As of March 29, 2020, the Company had outstanding letters of credit with various parties totaling $25,082. Substantially all of the outstanding letters of credit include amounts outstanding against the Class A-1 Notes. We do not expect any material loss to result from these letters of credit.