Meritage Hospitality Group Inc – ‘S-4/A’ on 10/15/97 – EX-99.2

As of:  Wednesday, 10/15/97   ·   Accession #:  950152-97-7227   ·   File #:  333-33461

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Pre-Effective Amendment to Registration of Securities Issued in a Business-Combination Transaction   —   Form S-4
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: S-4/A       Meritage Hospitality Group Inc. S-4 Amend No. 1      153    737K 
 2: EX-23.1     Consent of Experts or Counsel                          1      5K 
 3: EX-23.4     Consent of Experts or Counsel                          1      6K 
 4: EX-99.2     Miscellaneous Exhibit                                 45    227K 

EX-99.2   —   Miscellaneous Exhibit
Exhibit Table of Contents

EX-99.2
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                                                                    Exhibit 99.2

WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP
FAIRNESS OPINION
 Table Of Contents

--------------------------------------------------------- 

                                                        [Enlarge/Download Table]


                                                                                                    
METHODOLOGIES USED IN VALUATION................................................................1    

NET BOOK VALUE.................................................................................2    

PURCHASE PRICE PREMIUM ANALYSIS................................................................4    

PRESENT VALUE OF DISCOUNTED CASH FLOWS ("DCF").................................................5    

MARKET COMPARISON APPROACH.....................................................................7    

ACQUISITION VALUE..............................................................................10   

         Comparable Transactions...............................................................10   

REAL ESTATE VALUATION SUMMARY..................................................................12   

EXHIBITS                                                                                            
----------------------------------------------------------------------------------------------------

HISTORICAL & PROJECTED FINANCIAL STATEMENTS                                                     A   

COMMON STOCK PRICE/VOLUME ANALYSIS - MHGI                                                       B   

ASSET/BOOK VALUE ANALYSIS                                                                       C   

DISCOUNTED CASH FLOW ANALYSIS                                                                   D   

COMPARABLE COMPANY ANALYSIS                                                                     E   

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METHODOLOGIES USED IN VALUATION                                                 
-------------------------------                                                 

A number of appraisal methods and variations have been developed by valuation   
experts over the years in assessing financial fairness. These approaches        
consider quantitative factors (financial and accounting statistics), and        
qualitative factors (ability of management, supplier relationships, customer    
products acceptance, etc.) to arrive at an overall Fairness Opinion ("Opinion").

Three considerations must be taken into account in a valuation regardless of    
which individual or combination of methodologies are eventually used. They are: 

    1.  Restrictive agreements, if any, which may inhibit the free transfer of a
       company's common stock. At Wendy's of West Michigan Limited Partnership
      ("WWMLP" or the "Company") there are none with regards to the transfer
of the L.P. units.                                              

2.  Analysis of an established market price or other sales of the stock 
       being valued. Prices determined in a free and open market are sometimes
the best indications of value.                                  

    3.  Review of generally accepted approaches to valuations including Net Book
   Value, Present Value of Discounted (Estimated) Future Earnings, and
     Market Comparison. It should be stressed that none of these valuation
      tools is inherently better than the others, and each method is used in
different circumstances.                                        

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NET BOOK VALUE                                                                  
--------------                                                                  

The net book value or net equity method implies that a company is worth its     
accumulated retained earnings or deficit, plus its original capitalization. Net 
book value is primarily an amount arrived at over a company's existence that    
reflects accounting history expressed in unadjusted dollars and not the         
company's potential.                                                            

In most going concerns with a viable future, net book value is lower than the   
selling price of the company. Book Value is only of importance to the extent it 
provides an adequate base for the continuance of operations. In most instances  
where a company earns a significant return on its assets (both tangible and     
intangible), the net book value approach is not representative of the company's 
intrinsic business value.                                                       

Book Value is an accounting concept, augmented by appropriate Fair Market Value 
asset adjustments, recording the accumulated financing input from contributed   
capital and retained earnings. Intrinsic business value is an economic concept  
estimating future cash output discounted to present value. In essence, book     
value tells you what you have put in; intrinsic business value estimates what   
can be taken out.                                                               

Bonbright commented as follows on the term "book value":                        

     "In all respects the relationship between the commercial value of a
business and the so-called physical values of its assets is highly indirect and 
uncertain. Almost never does it justify an assumption that the `values' (that   
is, the depreciated costs) of the latter even roughly measure the value of the  
former." (1)                                                                    

The United States Court of Appeals in KETLER VS. COMMISSION (2) rejected book   
value as a primary valuation factor stating, "It is quite evident that the book 
value of a stock is a very unreliable basis upon which to determine the fair    
market value." The court referred to the case of ANSON EVANS (3), to the effect 
that "Book Value frequently bears no relationship to actual cash or fair market 
value."                                                                         

Despite the early and widespread recognition of the inadequacy of "book value"  
as a primary valuation factor, there have been litigated cases(4) in which      
either the Internal Revenue Service or the taxpayer contended that the fair     
market value of stock approximated its "book value". It is notable that the     
courts in all cases rejected the contention that book value approximated the    
fair market value of the capital stock.                                         

Net tangible book value represents net book value less all intangible assets,   
such as, but not limited to: excess of cost or acquired companies over fair     
value of net assets acquired (more commonly known as "Goodwill"), unamortized   
securities issuance costs, patents, etc.                                        

--------                                                                        
1    Bonbright, Valuation of Property 265                                       
2    KETLER VS. COMMISSION, 196 f.2d 822                                        
3    ANSON EVANS, 29 B.T.A. 710                                                 
4    Among these were COLONIAL TRUST CO. VS. KRAEMER, 63 F.                     
Supp. 866; BARTRAM, EXEC. VS. GRAHAM ADMX., 157 F.                    
Supp. 757; ESTATE OF SAMUEL E. MONTGOMERY, 127 T.C.M.                 
1380; ESTATE OF MARY K. MILLER, 18 T.C.M. 1127.                       

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We have reviewed the book value of WWMLP's assets in limited detail. This review
included visits to several of the Company's restaurant locations in June, 1996. 
While the liquidation value of the assets could possibly exceed their book      
value, it is not clear what effect this has on earnings potential, or ultimately
the Company's value. Further, because of the nature of WWMLP's business, it is  
unclear whether the fair market value of these assets would be at the same value
level as the net book value.                                                    

                                                                [Download Table]

=================================================================

           WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP          
                     ASSET/BOOK VALUE ANALYSIS                   

                       As of August 31, 1997                     

                        ($'s in thousands)                       

-----------------------------------------------------------------
                                           NET BOOK   FORCED     
                                            VALUE      VALUE     
-----------------------------------------------------------------
                                                                 
     Current Assets                                              
     Land                                                        
     Leasehold Improvements                                      
     Building & Improvements                                     
     Restaurant Equipment                                        
     Office Equipment                                            
      Leased Property                                            
           Gross Amount                                          
     Less: Total Liabilities                                     
                                        ----------- -----------  
         Shareholder's Equity                                    
     Total Shares Outstanding (000's)                            
                                        ----------- -----------  
     ASSET VALUE PER WWMLP SHARE                                 
=================================================================

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PURCHASE PRICE PREMIUM ANALYSIS                                                 
-------------------------------                                                 

Since June, 1996, Meritage and its affiliates have acquired approximately 54% of
the units of WWMLP. These transactions are the basis for analyzing the          
differences between all of the prices offered and the Proposed Transaction      
Purchase Price, and are distributed below:                                      

                                                        [Enlarge/Download Table]

================================================================================================================
                                   WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP                                 
                                         PURCHASE PRICE PREMIUM ANALYSIS                                        
================================================================================================================

                                                                    TOTAL            PROPOSED                   
                                                 EQUIVALENT     CONSIDERATION      TRANSACTION           %      
   DATE      # OF UNITS   CONSIDERATION             VALUE           VALUE       CONSIDERATION (A)     PREMIUM   
----------- ------------- --------------------- -------------- ---------------- ------------------- ------------
                                                                                                                
   6/96         14        Cash                     $5,000          $70,000            $7,500           50.0%    
   7/96       143.25      MHGI Stock               $6,000         $859,500            $7,500           25.0%    
                          (unregistered)                                                                        
  10/96       482.55      Cash                     $7,000       $3,377,850            $7,500            7.1%    
  11/96         41        Series A                 $7,200         $295,200            $7,500            4.2%    
                          Convertible                                                                           
                          Preferred Stock                                                                       

NOTES:                                                                                                          
<FN>                                                                                                            
(A) The Consideration would be paid in Meritage Common Shares which will be                                     
    registered on form S-4, at the transaction closing date, based on the lesser                                
    of the average high and low bid price on the OTC Bulletin Board for the 10                                  
    trading days preceding the date of dissolution and $4.125.                                                  
================================================================================================================

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PRESENT VALUE OF DISCOUNTED CASH FLOWS ("DCF")                                  
----------------------------------------------                                  

This approach argues that a potential investor will pay a price for a security  
that yields a targeted minimum rate of return on invested capital (both to      
suppliers of debt and equity). Using this targeted rate of return as a discount 
factor, the present value of an estimated future earnings stream for a given    
number of years can be computed by discounting each year's estimated earnings to
the present time. Other factors considered include the expected cyclicality or  
unpredictability (if any) of a company's earnings and cash flow and the         
investors' willingness to wait out a given length of ownership.                 

To state the premise another way, DCF valuation posits that the buyer purchases 
a time series of free cash flows that are generated by the assets purchased. DCF
does not value the total cash flow of the business. Rather, it values only the  
FREE CASH FLOW. In doing so, this analysis separates and ascribes a value only  
to the cash flows that an investor can remove from the business. Cash that is   
generated but used to sustain the business (such as increases in working capital
and capital expenditures) is not included in the DCF value. Cash flow that must 
be retained in the business creates no incremental value to the buyer.          

Before defining free cash flow, another methodological nuance should be noted.  
As noted, DCF valuation uses a discount rate that reflects the firms weighted   
cost of capital or the price it must pay to suppliers of both debt and equity.  
Accordingly, discounted free cash flow is independent of financing costs. For   
Wendy's of West Michigan Limited Partnership, we have considered management's   
projected financial statements to estimate Free Cash Flow (See EXHIBIT A).      

TERMINAL VALUE                                                                  
--------------                                                                  
DCF valuation is composed of two values: a forecast of free cash flows for some 
term of years and a terminal value that is a surrogate for the present value of 
the discounted cash flows that are expected to occur in the years after the end 
of the forecast period.                                                         

Terminal value at the end of the period of cash flow forecasts may be arrived at
in different ways, such as estimating book value, applying a price/earnings     
multiple to forecasted earnings or employing a cash flow multiple. We feel using
a cash flow or operating income multiple is most consistent with DCF            
methodology. In essence, this technique multiplies the operating income in the  
last year of the forecast by a multiplier that attempts to estimate the value of
cash flows in perpetuity. We have used a multiple of 5.5 which equates to a     
perpetuity value of 12.0%(5).                                                   

COST OF CAPITAL (DISCOUNT RATE)                                                 
-------------------------------                                                 
Once the free cash flows and terminal values are estimated, the present value of
these components is calculated. The acquirer is paying today for access to the  
cash flows generated by the assets in the future, therefore, these cash flows   
must be discounted to the present. The proper discount rate can be estimated by 
calculating the marginal weighted average cost of capital. In essence, the      
discount rate attempts to approximate the rate of return the suppliers of       
capital will expect to earn. In WWMLP's instance, because of its asset          
structure, working capital liquidity needs and capitalization requirements, a   
purchaser would not be able to borrow all of the acquisition funds on a senior  
basis. Thus, a component of the capital structure could, by necessity, consist  
of equity related subordinated debt, commonly referred to as "mezzanine         
capital", along with a substantial amount of equity. On this basis, the         
risk-adjusted cost of capital for WWMLP is calculated as follows:               

                                                        [Enlarge/Download Table]


--------                                                                                                     
                                                                                                             
5     (  1 -.34   )= 12.0% where 5.5 is the EBIT multiple required and 34.0% is the corporate income tax rate
       -----------                                                                                           
        (  5.5 )                                                                                             

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COST OF CAPITAL (CONT'D)                                                        
------------------------                                                        

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=======================================================================================================
                              WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP                             
                              WEIGHTED AVERAGE COST OF CAPITAL CALCULATION                             
=======================================================================================================
                                                                                         WEIGHTED      
    COMPONENT                      WEIGHT       COST       TAX BENEFIT    AFTER-TAX        COST        
    ------------------------------------------------------------------------------------------------   
                                                                                                       
    Senior Debt                      60%         9.0%        34.0%           6.1%         3.6%         
    Subordinated Debt                 0%        20.0%        34.0%          13.1%                      
    Equity                           40%        25.0%         0.0%          10.0%        10.0%         
                                --------------------------------------------------------------------   
        COST OF CAPITAL             100%                                                 13.6%         

=======================================================================================================

ANALYSIS                                                                        
--------                                                                        
We have made a five year projection of income statements and balance sheets     
based, in part, on projections provided by the Company and considering          
historical financial performance. We analyzed three distinct scenarios: i)      
Conservative Scenario, ii) Management Budgeted Scenario, and iii) Aggressive    
Scenario. We have utilized these projections and reformatted the financial      
information, (to value the real estate owned by the Company separately)         
contained within the statements to arrive at a number that approximates WWMLP's 
net after tax cash flow from operations. To this operations only figure, we     
added back the real estate value of the Company owned properties. Based on the  
historical and projected financial statements (EXHIBIT A), we have prepared a   
discounted cash flow analysis (EXHIBIT D).                                      

DCF ANALYSIS (000'S)                                                            
--------------------                                                            
This value is achievable only if the assumptions used in making the forecasts   
are defensible and accurate. If the assumptions are not defensible, a discount  
to these values would be appropriate.                                           

                                                        [Enlarge/Download Table]

======================================================================================= 
                     WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP                       
                             DISCOUNTED CASHFLOW ANALYSIS                               
                      For the 12 months ended November 30, 1997                         
                                  ($'s in thousands)                                    
======================================================================================= 
                                                                 Management             
                                                   Conservative   Budgeted    Aggressive
ASSUMPTIONS                                          Scenario     Scenario     Scenario 
-----------                                          --------     --------     -------- 
                                                                                        
Terminal Value Discount Rate                            13.6%       13.6%        13.6%  
Cash Flow Discount Rate                                 13.6%       13.6%        13.6%  
Terminal Value Multiple                                  5.5x        5.5x         5.5x  

DESCRIPTIONS                                                                            
------------                                                                            
PV of Free Cash Flows                                  $3,423      $3,850       $4,409  
PV of Terminal Value                                   $1,479      $2,269       $2,878  
                                                 -------------------------------------- 
      INTRINSIC BUSINESS VALUE                         $4,902      $6,119       $7,287  

ADJUSTMENTS                                                                             
-----------                                                                             
Plus: Cash & Equivalents                                   $0          $0           $0  
Plus: Prepaids & Other Assets                              $0          $0           $0  
Less: Funded Debt                                     ($3,609)    ($3,609)     ($3,609) 
Less: Other                                               ($0)        ($0)         ($0) 
                                                 -------------------------------------- 
   Subtotal                                           ($3,609)    ($3,609)     ($3,609) 

   UNITHOLDER VALUE (OPERATIONS ONLY)                  $1,293      $2,510       $3,678  
   UNITHOLDER VALUE (REAL ESTATE - SEE PAGE 12)        $4,615      $4,615       $4,615  
                                                 -------------------------------------- 
        TOTAL UNITHOLDER VALUE                         $5,908      $7,125       $8,293  

   TOTAL WWMLP UNITS OUTSTANDING (000'S)               1.2568      1.2568       1.2568  
                                                 -------------------------------------- 
   UNITHOLDER VALUE PER UNIT OF WWMLP                  $4,700      $5,670       $6,599  
                                                 ====================================== 

                                   MEAN VALUE                     $5,656                
======================================================================================= 

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MARKET COMPARISON APPROACH                                                      
--------------------------                                                      
This approach assumes that a degree of comparability exists between the Company 
and other similar firms for which a value has been established over a five year 
time horizon in an active and free trading market. Once similarity is           
established, the relationship to market value is expressed as a Price/Earnings  
ratio. This ratio, then, may be modified to reflect special conditions, risks,  
or opportunities which are unique to the Company.                               

There are obvious problems in identifying publicly traded firms whose total     
business parallels the Company's. Generally, the Company's area of operations is
not identically represented in the operations of the companies to which it is   
being compared. Despite this difficulty, we feel this method provides a valid   
technique for the valuation of the Company in a stable market environment over a
suitable analytical period. Under this method, the Company reflects both its    
hypothetical worth and value, absent special considerations, as if it were an   
actively traded security.                                                       

MARKET COMPARISONS                                                              
------------------                                                              
EXHIBIT E details the financial comparison for selected public companies in the 
related industries. In valuing WWMLP as a public company, a number of factors   
were considered, as follows:                                                    

A. Industry Niche (technical expertise with high market share)            
B. Earnings Growth                                                        
C. Revenue Size and Growth                                                
D. Market Diversity                                                       
E. Balance Sheet Strength                                                 
F. Return on Equity                                                       
G. Trading Volume (potential market capitalization)                       

We have reviewed those companies in EXHIBIT E and have condensed the list to    
those companies we feel have similar operating characteristics to WWMLP. With   
WWMLP's unique operating niche, we chose the following companies we deem to be  
truly comparable. In each instance, the following companies have some degree of 
comparability or at least have significant assets utilized in a similar industry
segment:                                                                        

                                                        [Enlarge/Download Table]

===================================================================================================
                           WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP                            
                                       COMPARABLE COMPANIES                                        

===================================================================================================
     COMPANY                        DESCRIPTION                                                    

---------------------------------------------------------------------------------------------------
                                                                                                   
     Davco Restaurants, Inc.        Operates approximately 228 fast food restaurants under the     
                                    trade name "Wendy's Old Fashioned Hamburgers".                 

     Morgan's Foods, Inc.           Operates 40 "Kentucky Fried Chicken" restaurants in five       
                                    states.                                                        

     Taco Cabana, Inc.              Operates a chain of 121 Mexican food restaurants which are     
                                    operated directly or through franchises.                       

     Wendy's International          Operates or franchises over 4,933 "Wendy's" and "Tim Hortons"  
                                    restaurants in the United States and 33 countries and          
                                    territories.                                                   

===================================================================================================

MARKET COMPARISON ANALYSIS                                                      
--------------------------                                                      
Wendy's International, Davco Restaurants, Morgan's Foods and Taco Cabana        
represent (in the order presented) the most comparable companies to WWMLP.      
Generally, the average P/E and Total Consideration/Operating Income ratios for  
these companies most accurately reflect the market valuation for quality        
participants in the quick service restaurant industry segment, as measured      
primarily by return on equity and other ratios.                                 

For purposes of our analysis, we believe that all four companies would be the   
best comparable companies to utilize. The valuation of a publicly traded company
is normally expressed as a function of its P/E ratio. We feel that the public   
market provides objective evidence as to value. However, we feel the proper way 
to view a company's valuation by the public is as a function of Total           
Consideration and EBITDA (Earnings Before Interest, Taxes, Depreciation &       
Amortization). In using EBITDA as a proxy for free cash flow from operations, we
assume that depreciation & amortization and capital expenditures do not offset  
each other. In doing so, we are valuing a                                       

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company based more on its intrinsic business value or Total Consideration,      
rather than relying solely on the public market's current P/E valuation         
perception. On this basis, the four comparable companies are trading at         
approximately 7.1x LTM EBITDA while the comparable group has a mean (excluding  
the high and low) of approximately 11.9x LTM EBITDA. In addition to analyzing   
EBITDA, we feel that it is important to examine the share price relative to the 
earning of these comparable companies as well. The four comparable company mean 
(excluding the high and low) P/E ratio (based off of 1997F earnings) was        
approximately 21.9x. In reviewing the four comparable companies financial       
performance relative to WWMLP's, we note that three of the four comparable      
companies operating income percentages are significantly above those earned by  
WWMLP (Morgan Foods has margins below WWMLP's).                                 

Based on our transactional analysis, we believe that the public market multiple 
of Total Consideration to EBITDA indicated for the comparable companies is in   
excess of the multiple a prospective investor would consider fair or an acquirer
would pay in a market for corporate control for all the Units of WWMLP.         

We think WWMLP would command a multiple lower than the 7.1x LTM EBITDA multiple 
indicated for a number of reasons. First, from an aggregate size standpoint,    
WWMLP is small relative to the size of the comparable companies. Size alone,    
while not necessarily having any impact on intrinsic value, does impact a       
Company's ability to withstand competitive pressures, whether from suppliers or 
customers. Further, size impacts a prospective purchasers pool of synergy       
opportunities (i.e. Selling, General and Administrative savings). Additionally, 
WWMLP's industry is in a very competitive mode where margins may become more    
narrow in the future, thus placing pressure on the business. Thus we believe    
that a more appropriate multiple of LTM EBITDA would be 5.5x.                   

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Earnings are calculated as follows:                                             

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==================================================================================
                   WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP                   
                            MARKET COMPARABLE ANALYSIS                            
                                ($'s in thousands)                                
==================================================================================
                                                            1998F        1999F    
                                                            MGMT.        MGMT.    
        CATEGORY                                          BUDGET(A)   BUDGET(A)   
----------------------------------------------------------------------------------

EBITDA MULTIPLE ANALYSIS                                                          
------------------------                                                          
                                                                                  
     FORECASTED EBIT  (FYE 11/30)                                $772        $849 

     Rebate Income                                               $265        $271 
     Real Estate Lease Obligation  (B)                         ($484)      ($496) 
                                                         -------------------------
         ADJUSTED EBIT                                           $553        $624 

     Depreciation                                                $698        $741 
     Amortization                                                $198        $198 
                                                         -------------------------
         ADJUSTED EBITDA                                       $1,449      $1,563 

     Normalized Capital Expenditures                           ($300)      ($300) 
                                                         -------------------------
     OPERATING CASH FLOW                                       $1,149      $1,263 

     Multiple-Operating Cashflow                                 5.50        5.00 
                                                         -------------------------
     INDICATED CAPITALIZED VALUE                               $6,320      $6,315 

     SHAREHOLDER VALUE ADJUSTMENT                                                 
         Plus:    Cash & Equivalents                               $0          $0 
         Plus:    Prepaids & Other Assets                          $0          $0 
         Less:    Funded Debt                                 ($3,609)    ($3,609)
         Less:    Notes Payable                                   ($0)        ($0)
                                                         -------------------------
          Total Shareholder Value Adj.                        ($3,609)    ($3,609)

          TOTAL UNITHOLDER VALUE (OPERATIONS ONLY)             $2,710      $2,706 
          TOTAL UNITHOLDER VALUE (REAL ESTATE - SEE PAGE 12    $4,615      $4,615 
                                                         -------------------------
               TOTAL UNITHOLDER VALUE                          $7,325      $7,321 

           Total WWMLP Units Outstanding (000's)               1.2568      1.2568 
                                                         -------------------------
           TOTAL UNITHOLDER VALUE PER SHARE                    $5,829      $5,825 
                                                         =========================
                                                 MEAN          $5,827             

<FN>                                                                              
A.  Roney & Co.'s usage of Management's Budget reflects only operational EBIT     
B.  These figures assume 8.5% rents for the 5 Company owned locations and 5%      
    rent for the building lease on the ground lease property.                     
==================================================================================

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ACQUISITION VALUE                                                               
-----------------                                                               
The acquisition value of a company seeks to estimate the price at which the     
company would "trade in the market for corporate control." Acquisition value is 
the price an acquirer would pay to control the target's assets and the free cash
flows (FCF) they generate. Transactions occur in the public market almost daily 
at prices significantly above current secondary trading levels. The premium paid
over the market trading level of the stock of a company is, in fact, a derived  
figure rather than an analytical tool(6). When the various valuation methods    
outlined previously justify a price over current trading prices, then a premium 
price is paid. The price paid rests on the conclusion of the analysis. To some  
degree, the prices paid are a result of the intense amount of competition among 
buyers for quality businesses and to a greater degree they reflect the economic 
benefits of all the synergies that a buyer may bring to a seller in a corporate 
combination.                                                                    

Thus, the value of a company (its intrinsic value) as an independent entity     
often will be different than the value of the company when it is combined with  
another firm. The acquisition value will reflect incremental cash flow generated
by consolidated tax savings, cost savings due to the elimination of redundant   
operations, distribution economies, or other business benefits.                 

The first step in this approach is to determine a sample of comparable companies
that have been involved in a merger or acquisition. From a comparability        
standpoint, we look at the following aspects of a company: industry, products,  
processes, customers, distribution channels, and suppliers among others. For    
WWMLP, we reviewed a number of transactions and feel they are representative of 
the valuation multiples that would be paid for WWMLP, given forecasted earning, 
in a competitive market place.                                                  

COMPARABLE TRANSACTIONS                                                         
-----------------------                                                         
The following summarizes the multiples paid:                                    

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======================================================================================================      
                            WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP                                    
                            COMPARABLE MERGERS & ACQUISITION TRANSACTIONS                                   
------------------------------------------------------------------------------------------------------------
                                                                                                 MULTIPLE   
      DATE                                                                          TOTAL           OF      
    COMPLETED  ACQUIRER                 ACQUIREE                                CONSIDERATION     EBITDA    
------------------------------------------------------------------------------------------------------------
                                                                                                            
      1994     Apple South              Apple-Tenn-Flo L.P.                       $17,000,000          N/A  
      1994     Quality Dining, Inc.     Grayling Corporation                      $19,900,000        6.63x  
      1995     Apple South, Inc.        Marcus Group - Applebee's                 $48,000,000        6.82x  
      1995     Apple South, Inc.        DF&R Restaurants Inc.                    $201,216,000       14.37x  
      1995     Quality Dining, Inc.     Burger King Franchisee                     $8,600,000          N/A  
      1995     Shareholders             Dave and Buster's                         $94,631,000       11.83x  
      1995     Shareholders             Host Marriott Services                   $601,950,000          N/A  
      1996     Private-Strategic        Private I  (Quick Service Segment)         $2,998,000        4.75x  
      1996     Private-Strategic        Private II (Quick Service Segment)         $6,250,000        4.50x  
      1996     Quality Dining, Inc.     Bruegger's Bagels                                 N/A          N/A  
      1996     Investor Group           America's Favorite Chicken Co.           $320,000,000          N/A  
      1997     Investor Group           Bruegger's Bagels                                 N/A          N/A  
      1997     Pizza Hut of Michigan    Pizza Hut Corporate Territory                     N/A          N/A  
      1997     Compass Group PLC        DAKA International Inc.                  $189,122,000       13.80x  
      1997     Investor Group**         DAVCO Restaurants                        $140,000,000        5.62x  

<FN>                                                                                                        
  **  The deal is pending  -  The transaction is estimated to have consideration of roughly                 
      $140mm.  The multiple is based off of this estimate.                                                  
=======================================================================================================     

--------                                                                                                    
6 See Judson P. Reis, "The Fine Art of Valuation", Mergers & Acquisition Handbook                           


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                                                        [Enlarge/Download Table]

================================================================================================================
                  WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP                                                  
                          TRANSACTION MULTIPLE ANALYSIS                                                         
                               ($'s in Thousands)                                                               
----------------------------------------------------------------------------------------------------------------
                                                                                                    MULTIPLE    
      DATE                                                                             TOTAL           OF       
    COMPLETED  ACQUIRER                  ACQUIREE                                   CONSIDERATION     EBITDA    
----------------------------------------------------------------------------------------------------------------
                                                                                                                
      1994     Quality Dining,  Inc.     Grayling Corporation                            $19,900        6.63x   

      1996     Private-Strategic         Private I  (Quick Service Segment)               $2,998        4.75x   

      1996     Private-Strategic         Private II (Quick Service Segment)               $6,250        4.50x   

      1997     Investor Group (A)        Davco Restaurants, Inc.                        $140,000        5.62x   
                                                                                  ----------------------------  
                                                                                             HIGH       6.63X   
                                                                                              LOW       4.50X   
                                                                                          AVERAGE       5.37X   

                                                                    ------------------------------------------  
                                                                         LOW          AVERAGE         HIGH      
                                                                    ------------------------------------------  
                                                                                                                
               WWMLP - 1998F EBITDA                                     $553           $553           $553      
               Multiple                                                 4.50x          5.37x          6.63x     
                                                                    ------------------------------------------  
               WWMLP - CALCULATED VALUE - OPERATIONS ONLY              $2,489         $2,969         $3,666     
               WWMLP - CALCULATED VALUE - REAL ESTATE ONLY             $4,615         $4,615         $4,615     
                                                                    ------------------------------------------  
               WWMLP - TOTAL UNIT VALUE - TOTAL ENTITY                 $7,104         $7,584         $8,281     
                     TOTAL WWMLP UNITS OUTSTANDING (000'S)             1.2568         1.2568         1.2568     
                                                                    ==========================================  
                     WWMLP - PER UNIT VALUE - TOTAL ENTITY             $5,652         $6,034         $6,590     
                                                                    ==========================================  
================================================================================================================

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REAL ESTATE VALUATION SUMMARY                                                   
-----------------------------                                                   
Based on our omission of real estate cash flow from the valuation methodologies,
we need to value the real estate utilizing a separate formula. This formula     
derives a multiple by utilizing the inverse of what is classified in industry   
terms as a capitalization rate ("Cap Rate"). The Cap Rate is the inverse of a   
multiple that would be associated with the cash flow associated with the        
properties (income received for usage of the properties). In the case of Wendy's
of West Michigan L.P. we have utilized a range of Cap Rates based on our        
transaction experience in the real estate arena of the quick service restaurant 
industry. Based on this experience, we would attach a Cap Rate of somewhere in  
the range of 10.0% - 11.0%, which would be based on the cashflows associated    
with the properties and the upkeep of the properties that are Company owned by  
WWMLP. The following chart illustrates the range of values of the Company owned 
real estate:                                                                    

                                                        [Enlarge/Download Table]

=========================================================================================================
                                     WENDY'S OF WEST MICHIGAN L.P.                                       
                                     REAL ESTATE VALUATION SUMMARY                                       
                                          ($'s in thousands)                                             
---------------------------------------------------------------------------------------------------------
                                                                             ASSUMED CAP RATE            
                                                                   --------------------------------------
                                 RENT        1997F        1997F                                          
VALUATION TECHNIQUE            FACTOR /A   REVENUES/B     RENT        10.0%       10.5%        11.0%     
---------------------------------------------------------------------------------------------------------
TOTAL COMPANY OWNED                                                                                      
-------------------                                                                                      
                                                                                                         
    2200 28th Street               8.50%    $1,027,368    $87,326     $873,260    $831,676     $793,872  
    261 East 8th Street            8.50%      $803,191    $68,271     $682,710    $650,200     $620,645  
    3850 S. Division               8.50%      $972,564    $82,668     $826,680    $787,314     $751,527  
    2071 Apple Avenue              8.50%    $1,098,121    $93,340     $933,400    $888,952     $848,545  
    4343 Chicago Drive             8.50%    $1,199,758   $101,979   $1,019,794    $971,229     $927,082  

GROUND LEASE                                                                                             
------------                                                                                             
    3301 Plainfield Avenue         5.00%    $1,004,940    $50,247     $502,470    $478,543     $456,791  
                                          ---------------------------------------------------------------
    VALUATION CONCLUSION                    $6,105,942   $483,831   $4,838,310  $4,607,914   $4,398,463  
                                          ===============================================================
                                    MEAN                                        $4,615,000               

<FN>                                                                                                     
A. THE RENT FACTORS ARE BASED ON INDUSTRY STANDARDS. THE GROUND LEASE IS ESTIMATED TO BE AN ADDITIONAL   
5.0% OVER THE 1.5% ALREADY PAID FOR LAND.                                                                
=========================================================================================================

The above values assume that these properties would generate the industry norms 
for rents, and that the operations located at these sites would continue to     
maintain or increase their revenue figures. If revenues at these sites          
decreased, or the sites are determined, by an appraiser, to be worn down or     
neglected, the value ranges of the properties might need to be adjusted         
accordingly.                                                                    

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 HISTORICAL & PROJECTED FINANCIAL STATEMENTS

(BUDGETED SCENARIO) 

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                                                      -------------------------------------------------------------            
                                                                  WENDY'S OF WEST MICHIGAN -- BUDGETED                         
                                                                HISTORICAL AND FORECASTED BALANCE SHEET                        
                                                                           AS OF DECEMBER 31,                                  
                                                      -------------------------------------------------------------            

                                                      -------------------------------------------------------------------------

          ASSETS                                            1995          1996            1997           1998F          1999F  
                                                      -------------------------------------------------------------------------
                                                                                                                               
CURRENT ASSETS                                                                                                                 
     Cash                                                   $411          $777            $407           $500           $500   
     Marketable Securities                                    $0            $0              $0           $188           $799   
     Accounts Receivable - Including related parties         $53          $217             $83            $85            $87   
     Inventory                                              $146          $180            $169           $173           $178   
     Prepaid Expenses                                       $139          $125            $120           $123           $126   
     Deferred Taxes                                           $0            $0              $0             $0             $0   
     Other                                                    $0            $0              $0             $0             $0   
                                                      -------------------------------------------------------------------------
          CURRENT ASSETS                                    $749        $1,299            $779         $1,070         $1,690   
                                                      -------------------------------------------------------------------------
Property, Plant & Equipment                              $11,809       $12,541         $13,233        $13,533        $13,833   
Accumulated Depreciation                                  $6,138        $6,644          $7,339         $8,037         $8,777   
                                                      -------------------------------------------------------------------------
     NET PROPERTY & EQUIPMENT                             $5,671        $5,897          $5,894         $5,496         $5,056   
                                                      -------------------------------------------------------------------------
OTHER ASSETS                                                                                                                   

     Goodwill & Start-up Costs                            $2,163        $1,981          $1,783         $1,585         $1,387   
     Other Non-Current Assets                               $248          $282            $252           $258           $265   
                                                      -------------------------------------------------------------------------
          TOTAL OTHER ASSETS                              $2,411        $2,263          $2,035         $1,843         $1,652   
                                                      -------------------------------------------------------------------------

                                                      -------------------------------------------------------------------------
                        TOTAL ASSETS                      $8,831        $9,459          $8,708         $8,409         $8,397   
                                                      =========================================================================
          LIABILITY AND OWNERS' EQUITY                                                                                         
CURRENT LIABILITIES                                                                                                            

     Accounts Payable                                       $785          $771            $733           $751           $770   
     Accrued Liabilities                                    $679          $724            $563           $577           $591   
     Other Current Liabilities                               $39           $39            $113            $39            $39   
     Revolver                                                 $0            $0              $0             $0             $0   
     Total Current Portion of LT Debt                       $160          $232            $390           $250           $250   
                                                      -------------------------------------------------------------------------
          TOTAL CURRENT LIABILITIES                       $1,663        $1,766          $1,799         $1,617         $1,651   
                                                      -------------------------------------------------------------------------
Senior Debt                                               $2,500        $2,192          $1,529         $1,279         $1,029   
Capital Leases                                            $1,809        $1,954          $1,690         $1,690         $1,690   
Shareholder Debt                                              $0            $0              $0             $0             $0   
Sub Jr. Debt                                                  $0            $0              $0             $0             $0   
                                                      -------------------------------------------------------------------------
          TOTAL LONG TERM DEBT                            $4,309        $4,146          $3,219         $2,969         $2,719   
                                                      -------------------------------------------------------------------------
Other Non-Current Liab.                                       $0           $61              $0             $0             $0   
                                                      -------------------------------------------------------------------------
                        TOTAL LIABILITY                   $5,972        $5,973          $5,018         $4,586         $4,370   
                                                      -------------------------------------------------------------------------
          SHAREHOLDERS EQUITY                                                                                                  

Common Stock & Paid in Capital                                $0            $0              $0             $0             $0   
Retained Earnings                                         $2,859        $3,486          $3,690         $3,823         $4,027   
                                                      -------------------------------------------------------------------------
          TOTAL EQUITY                                    $2,859        $3,486          $3,690         $3,823         $4,027   
                                                      -------------------------------------------------------------------------
          TOTAL LIABILITIES & EQUITY                      $8,831        $9,459          $8,708         $8,409         $8,397   
                                                      =========================================================================
          Check                                               $0            $0              $0             $0             $0   

                                                      -------------------------------------------                              
                                                             Forecasted                                                        
          ASSETS                                               2000F         2001F          2002F                              
                                                      -------------------------------------------                              
                                                                                                                               
CURRENT ASSETS                                                                                                                 
     Cash                                                      $500          $500           $500                               
     Marketable Securities                                   $1,499        $2,299         $3,190                               
     Accounts Receivable - Including related parties            $89           $92            $94                               
     Inventory                                                 $182          $187           $191                               
     Prepaid Expenses                                          $129          $132           $136                               
     Deferred Taxes                                              $0            $0             $0                               
     Other                                                       $0            $0             $0                               
                                                      -------------------------------------------                              
          CURRENT ASSETS                                     $2,400        $3,210         $4,111                               
                                                      -------------------------------------------                              
Property, Plant & Equipment                                 $14,133       $14,433        $14,733                               
Accumulated Depreciation                                     $9,561       $10,387        $11,256                               
                                                      -------------------------------------------                              
     NET PROPERTY & EQUIPMENT                                $4,572        $4,046         $3,477                               
                                                      -------------------------------------------                              
OTHER ASSETS                                                                                                                   
     Goodwill & Start-up Costs                               $1,189          $991           $793                               
     Other Non-Current Assets                                  $271          $278           $285                               
                                                      -------------------------------------------                              
          TOTAL OTHER ASSETS                                 $1,460        $1,269         $1,078                               
                                                      -------------------------------------------                              

                                                      -------------------------------------------                              
                        TOTAL ASSETS                         $8,432        $8,525         $8,666                               
                                                      ===========================================                              
          LIABILITY AND OWNERS' EQUITY                                                                                         
CURRENT LIABILITIES                                                                                                            
     Accounts Payable                                          $789          $809           $829                               
     Accrued Liabilities                                       $606          $621           $637                               
     Other Current Liabilities                                  $39           $39            $39                               
     Revolver                                                    $0            $0             $0                               
     Total Current Portion of LT Debt                          $250          $250           $250                               
                                                      -------------------------------------------                              
          TOTAL CURRENT LIABILITIES                          $1,685        $1,720         $1,755                               
                                                      -------------------------------------------                              
Senior Debt                                                    $779          $529           $279                               
Capital Leases                                               $1,690        $1,690         $1,690                               
Shareholder Debt                                                 $0            $0             $0                               
Sub Jr. Debt                                                     $0            $0             $0                               
                                                      -------------------------------------------                              
          TOTAL LONG TERM DEBT                               $2,469        $2,219         $1,969                               
                                                      -------------------------------------------                              
Other Non-Current Liab.                                          $0            $0             $0                               
                                                      -------------------------------------------                              
                        TOTAL LIABILITY                      $4,154        $3,939         $3,724                               
                                                      -------------------------------------------                              
          SHAREHOLDERS EQUITY                                                                                                  
Common Stock & Paid in Capital                                   $0            $0             $0                               
Retained Earnings                                            $4,278        $4,586         $4,942                               
                                                      -------------------------------------------                              
          TOTAL EQUITY                                       $4,278        $4,586         $4,942                               
                                                      -------------------------------------------                              
          TOTAL LIABILITIES & EQUITY                         $8,432        $8,525         $8,666                               
                                                      ===========================================                              
          Check                                                  $0            $0             $0                               


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                                         -------------------------------------------------------------------      
                                                        WENDY'S OF WEST MICHIGAN -- BUDGETED                      
                                                     HISTORICAL AND FORECASTED INCOME STATEMENT                   
                                                          FOR THE YEAR ENDING DECEMBER 31,                        
                                         -------------------------------------------------------------------      

                                         -------------------------------------------------------------------------

                                                      1995            1996             1997            1998F      
                                         -------------------------------------------------------------------------
                                                                                                                  
SALES                                              $23,365         $24,438          $27,105         $27,783       
Less Discounts Allowed                                  $0              $0               $0              $0       
                                         -------------------------------------------------------------------------
Total Sales                                        $23,365         $24,438          $27,105         $27,783       
COST OF GOODS SOLD                                                                                                
     Cost of Goods Sold - Food                     $16,844         $16,225          $17,997         $18,448       
     Labor Costs                                        $0              $0               $0              $0       
     Food Service Supplies                              $0              $0               $0              $0       
                                         -------------------------------------------------------------------------
          TOTAL COST OF GOOD SOLD                  $16,844         $16,225          $17,997         $18,448       
                                         -------------------------------------------------------------------------

     GROSS PROFIT                                   $8,521          $8,213           $9,108          $9,335       
     GROSS PROFIT %                                     33.6%           33.6%            33.6%           33.6%    

OPERATING EXPENSE                                                                                                 
     Administrative & General                       $2,103          $1,815           $2,196          $1,306       
     Sales & Marketing                              $1,520          $1,536           $1,664          $2,639       
     Royalties                                      $1,015            $978           $1,084          $1,111       
     Energy & Property Maintenance                  $3,134          $3,172           $3,420          $3,501       
     Amortization                                                                                                 
     Rebates & Rental Expense                        ($269)           $249             $265            $225       
                                         -------------------------------------------------------------------------
          TOTAL OPERATING EXPENSES                  $7,503          $7,252           $8,099          $8,782       
                                         -------------------------------------------------------------------------

                                         -------------------------------------------------------------------------
          OPERATING PROFIT (LOSS) /EBIT             $1,018            $961           $1,009            $553       
          OPERATING PROFIT (LOSS) %                      4.0%            3.9%             3.7%            2.0%    
                                         -------------------------------------------------------------------------

Non-Recurring Charges                                   $0              $0               $0              $0       

OTHER INCOME (EXPENSE)                                                                                            
     Other Income                                       $0              $0               $0              $0       
     Net Interest Income (Expense)                   ($512)          ($403)           ($420)          ($352)      

     Earn out / bonus payments                                                                                    
                                         -------------------------------------------------------------------------
          TOTAL OTHER INCOME                         ($512)          ($403)           ($420)          ($352)      
                                         -------------------------------------------------------------------------
          PRETAX INCOME (LOSS)                        $506            $558             $589            $201       
Taxes Paid                                              $0              $0               $0             $68       
                                         -------------------------------------------------------------------------
          NET INCOME (LOSS)                           $506            $558             $589            $133       
                                         =========================================================================

                                         -----------------------------------------------------------              
                                                            Forecasted                                            
                                              1999F            2000F            2001F          2002F              
                                         -----------------------------------------------------------              
                                                                                                                  
SALES                                      $28,477          $29,189          $29,919        $30,667               
Less Discounts Allowed                          $0               $0               $0             $0               
                                         -----------------------------------------------------------              
Total Sales                                $28,477          $29,189          $29,919        $30,667               
COST OF GOODS SOLD                                                                                                
     Cost of Goods Sold - Food             $18,908          $19,381          $19,865        $20,362               
     Labor Costs                                $0               $0               $0             $0               
     Food Service Supplies                      $0               $0               $0             $0               
                                         -----------------------------------------------------------              
          TOTAL COST OF GOOD SOLD          $18,908          $19,381          $19,865        $20,362               
                                         -----------------------------------------------------------              

     GROSS PROFIT                           $9,569           $9,808          $10,054        $10,305               
     GROSS PROFIT %                             33.6%            33.6%            33.6%          33.6%            

OPERATING EXPENSE                                                                                                 
     Administrative & General               $1,338           $1,372           $1,406         $1,441               
     Sales & Marketing                      $2,648           $2,685           $2,693         $2,729               
     Royalties                              $1,139           $1,168           $1,197         $1,227               
     Energy & Property Maintenance          $3,588           $3,678           $3,785         $3,879               
     Amortization                                                                                                 
     Rebates & Rental Expense                 $231             $236             $242           $249               
                                         -----------------------------------------------------------              
          TOTAL OPERATING EXPENSES          $8,945           $9,136           $9,322         $9,526               
                                         -----------------------------------------------------------              

                                         -----------------------------------------------------------              
          OPERATING PROFIT (LOSS) /EBIT       $624             $670             $731           $779               
          OPERATING PROFIT (LOSS) %              2.2%             2.3%             2.4%           2.5%            
                                         -----------------------------------------------------------              

Non-Recurring Charges                           $0               $0               $0             $0               

OTHER INCOME (EXPENSE)                                                                                            
     Other Income                               $0               $0               $0             $0               
     Net Interest Income (Expense)           ($314)           ($289)           ($265)         ($241)              

     Earn out / bonus payments                                                                                    
                                         -----------------------------------------------------------              
          TOTAL OTHER INCOME                 ($314)           ($289)           ($265)         ($241)              
                                         -----------------------------------------------------------              
          PRETAX INCOME (LOSS)                $310             $380             $466           $539               
Taxes Paid                                    $106             $129             $158           $183               
                                         -----------------------------------------------------------              
          NET INCOME (LOSS)                   $205             $251             $308           $355               
                                         ===========================================================              

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                                                      ----------------------------------------------------------------      
                                                                   WENDY'S OF WEST MICHIGAN -- BUDGETED                     
                                                               HISTORICAL AND FORECASTED CASH FLOW STATEMENT                
                                                                     FOR THE YEAR ENDING DECEMBER 31,                       
                                                      ----------------------------------------------------------------      

                                                      ----------------------------------------------------------------------

                                                                  1995           1996            1997            1998F      
                                                      ----------------------------------------------------------------------
                                                                                                                            
OPERATING ACTIVITIES                                                                                                        

NET INCOME (LOSS)                                                 $506           $558            $589            $133       
Depreciation & Amortization                                       $971           $857            $853            $896       

Provided (used) by changes in                                                                                               
     Accounts Receivable - Including related parties              ($53)         ($164)           $134             ($2)      
     Inventory                                                   ($146)          ($34)            $11             ($4)      
     Prepaid Expenses                                                             $14              $5             ($3)      
     Deferred Taxes                                                                $0              $0              $0       
     Other                                                          $0             $0              $0              $0       
     Accounts Payable                                             $785           ($14)           ($38)            $18       
     Accrued Liabilities                                          $679            $45           ($161)            $14       
     Other Current Liabilities                                     $39             $0             $74            ($74)      
     Other Non-Current Liabilities                                  $0            $61            ($61)             $0       
     Other Non-Current Assets                                    ($248)          ($34)            $30             ($6)      
                                                      ----------------------------------------------------------------------
CASH PROVIDED BY OPERATING ACTIVITIES                           $2,533         $1,289          $1,436            $941       
                                                      ----------------------------------------------------------------------

INVESTING ACTIVITIES                                                                                                        
Capital expenditures (net)                                    ($11,809)         ($732)          ($692)          ($300)      
Marketable Securities                                               $0             $0              $0            $188       
                                                      ----------------------------------------------------------------------
CASH PROVIDED BY INVESTING                                    ($11,809)         ($732)          ($692)          ($112)      
                                                      ----------------------------------------------------------------------

FINANCING ACTIVITIES                                                                                                        
Issuance (Repayment) of:                                                                                                    
     Current Portion of LT Debt                                   $160            $72            $158           ($140)      
     Revolver                                                       $0             $0              $0              $0       
     Senior Debt                                                $2,500          ($308)          ($663)          ($250)      
     Sellers Note                                               $1,809           $145           ($264)             $0       
     Subordinated Debt                                              $0             $0              $0              $0       
     Sub Jr. Dept                                                   $0             $0              $0              $0       
Common Stock Dividends                                          $2,353            $69           ($385)             $0       
Issuance (Repurchase) of Common Stock                               $0             $0              $0              $0       
                                                      ----------------------------------------------------------------------
CASH PROVIDED BY FINANCING                                      $6,822           ($22)        ($1,154)          ($390)      
                                                      ----------------------------------------------------------------------

Other Miscellaneous Cash Flow Adjustments                       $2,865          ($169)            $40                       

Cash at Beginning of Period                                         $0           $411            $777            $407       
Increase (Decrease) in Cash                                       $411           $366           ($370)            $93       
                                                      ----------------------------------------------------------------------

                                                      ----------------------------------------------------------------------
     CASH AT END OF PERIOD                                        $411           $777            $407            $500       
                                                      ======================================================================

                                                      ----------------------------------------------------                  
                                                                       Forecasted                                           
                                                         1999F          2000F         2001F          2002F                  
                                                      ----------------------------------------------------                  
                                                                                                                            
OPERATING ACTIVITIES                                                                                                        

NET INCOME (LOSS)                                        $205           $251          $308           $355                   
Depreciation & Amortization                              $939           $981        $1,024         $1,067                   

Provided (used) by changes in                                                                                               
     Accounts Receivable - Including related parties      ($2)           ($2)          ($2)           ($2)                  
     Inventory                                            ($4)           ($4)          ($5)           ($5)                  
     Prepaid Expenses                                     ($3)           ($3)          ($3)           ($3)                  
     Deferred Taxes                                        $0             $0            $0             $0                   
     Other                                                 $0             $0            $0             $0                   
     Accounts Payable                                     $19            $19           $20            $20                   
     Accrued Liabilities                                  $14            $15           $15            $16                   
     Other Current Liabilities                             $0             $0            $0             $0                   
     Other Non-Current Liabilities                         $0             $0            $0             $0                   
     Other Non-Current Assets                             ($6)           ($7)          ($7)           ($7)                  
                                                      ----------------------------------------------------                  
CASH PROVIDED BY OPERATING ACTIVITIES                  $1,161         $1,250        $1,350         $1,441                   
                                                      ----------------------------------------------------                  

INVESTING ACTIVITIES                                                                                                        
Capital expenditures (net)                              ($300)         ($300)        ($300)         ($300)                  
Marketable Securities                                    $611           $700          $800           $891                   
                                                      ----------------------------------------------------                  
CASH PROVIDED BY INVESTING                               $311           $400          $500           $591                   
                                                      ----------------------------------------------------                  

FINANCING ACTIVITIES                                                                                                        
Issuance (Repayment) of:                                                                                                    
     Current Portion of LT Debt                            $0             $0            $0             $0                   
     Revolver                                              $0             $0            $0             $0                   
     Senior Debt                                        ($250)         ($250)        ($250)         ($250)                  
     Sellers Note                                          $0             $0            $0             $0                   
     Subordinated Debt                                     $0             $0            $0             $0                   
     Sub Jr. Dept                                          $0             $0            $0             $0                   
Common Stock Dividends                                     $0             $0            $0             $0                   
Issuance (Repurchase) of Common Stock                      $0             $0            $0             $0                   
                                                      ----------------------------------------------------                  
CASH PROVIDED BY FINANCING                              ($250)         ($250)        ($250)         ($250)                  
                                                      ----------------------------------------------------                  

Other Miscellaneous Cash Flow Adjustments                                                                                   

Cash at Beginning of Period                              $500           $500          $500           $500                   
Increase (Decrease) in Cash                                $0             $0            $0             $0                   
                                                      ----------------------------------------------------                  

                                                      ----------------------------------------------------                  
     CASH AT END OF PERIOD                               $500           $500          $500           $500                   
                                                      ====================================================                  
                                      A-4                                       

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--------------------------------------------------------------------------------

 HISTORICAL & PROJECTED FINANCIAL STATEMENTS
(AGGRESSIVE SCENARIO)   

 -------------------------------------------------------------

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Wendy's of West Michigan -- Aggressive
 Historical and Forecasted Balance Sheet
As of December 31,

                                                        [Enlarge/Download Table]


                                                      -----------------------------------------------------------------------------
                                                                                                   Forecasted                      
          ASSETS                                        1995      1996      1997      1998F     1999F    2000F    2001F       2002F
                                                      -----------------------------------------------------------------------------
                                                                                                                                   
CURRENT ASSETS                                                                                                                     
     Cash                                                $411      $777      $407      $500      $500      $500      $500      $500
     Marketable Securities                                 $0        $0        $0      $365    $1,144    $2,014    $2,953    $3,982
     Accounts Receivable - Including related parties      $53      $217       $83       $85       $87       $89       $92       $94
     Inventory                                           $146      $180      $169      $172      $177      $181      $187      $191
     Prepaid Expenses                                    $139      $125      $120      $123      $126      $129      $132      $136
     Deferred Taxes                                        $0        $0        $0        $0        $0        $0        $0        $0
     Other                                                 $0        $0        $0        $0        $0        $0        $0        $0
                                                      -----------------------------------------------------------------------------
          CURRENT ASSETS                                 $749    $1,299      $779    $1,245    $2,034    $2,914    $3,864    $4,903
                                                      -----------------------------------------------------------------------------

Property, Plant & Equipment                           $11,809   $12,541   $13,233   $13,533   $13,833   $14,133   $14,433   $14,733
Accumulated Depreciation                               $6,138    $6,644    $7,339    $8,037    $8,777    $9,561   $10,387   $11,256
                                                      -----------------------------------------------------------------------------
     NET PROPERTY & EQUIPMENT                          $5,671    $5,897    $5,894    $5,496    $5,056    $4,572    $4,046    $3,477
                                                      -----------------------------------------------------------------------------

OTHER ASSETS                                                                                                                       
     Goodwill & Start-up Costs                         $2,163    $1,981    $1,783    $1,585    $1,387    $1,189      $991      $793
     Other Non-Current Assets                            $248      $282      $252      $258      $265      $271      $278      $285
                                                      -----------------------------------------------------------------------------
          TOTAL OTHER ASSETS                           $2,411    $2,263    $2,035    $1,843    $1,652    $1,460    $1,269    $1,078
                                                      -----------------------------------------------------------------------------

                                                      -----------------------------------------------------------------------------
                        TOTAL ASSETS                   $8,831    $9,459    $8,708    $8,585    $8,741    $8,947    $9,179    $9,458
                                                      =============================================================================

          LIABILITY AND OWNERS' EQUITY                                                                                             
CURRENT LIABILITIES                                                                                                                
     Accounts Payable                                    $785       $71      $733      $748      $768      $787      $809      $829
     Accrued Liabilities                                 $679      $724      $563      $574      $590      $604      $621      $637
     Other Current Liabilities                            $39       $39      $113       $39       $39       $39       $39       $39
     Revolver                                              $0        $0        $0        $0        $0        $0        $0        $0
     Total Current Portion of LT Debt                    $160      $232      $390      $250      $250      $250      $250      $250
                                                      -----------------------------------------------------------------------------
          TOTAL CURRENT LIABILITIES                    $1,663    $1,766    $1,799    $1,611    $1,647    $1,680    $1,720    $1,755
                                                      -----------------------------------------------------------------------------

Senior Debt                                            $2,500    $2,192    $1,529    $1,279    $1,029      $779      $529      $279
Capital Leases                                         $1,809    $1,954    $1,690    $1,690    $1,690    $1,690    $1,690    $1,690
Shareholder Debt                                           $0        $0        $0        $0        $0        $0        $0        $0
Sub Jr. Debt                                               $0        $0        $0        $0        $0        $0        $0        $0
                                                      -----------------------------------------------------------------------------
          TOTAL LONG TERM DEBT                         $4,309    $4,146    $3,219    $2,969    $2,719    $2,469    $2,219    $1,969
                                                      -----------------------------------------------------------------------------
Other Non-Current Liab                                     $0       $61        $0        $0        $0        $0        $0        $0
                        TOTAL LIABILITY                $5,972    $5,973    $5,018    $4,580    $4,366    $4,149    $3,939    $3,724
                                                      -----------------------------------------------------------------------------

          SHAREHOLDERS EQUITY                                                                                                      
Common Stock & Paid in Capital                             $0        $0        $0        $0        $0        $0        $0        $0
Retained Earnings                                      $2,859    $3,486    $3,690    $4,004    $4,376    $4,797    $5,240    $5,733
                                                      -----------------------------------------------------------------------------
          TOTAL EQUITY                                 $2,859    $3,486    $3,690    $4,004    $4,376    $4,797    $5,240    $5,733
                                                      -----------------------------------------------------------------------------
          TOTAL LIABILITIES & EQUITY                   $8,831    $9,459    $8,708    $8,585    $8,741    $8,947    $9,179    $9,458
                                                      =============================================================================
          Check                                            $0        $0        $0        $0        $0        $0        $0        $0

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EX-99.2
20th Page of 45
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Wendy's of West Michigan -- Aggressive
Historical and Forecasted Income Statement
For the Year Ending December 31,

                                                        [Enlarge/Download Table]


                                        -------------------------------------------------------------------------------------------
                                                                                                   Forecasted                      
                                          1995        1996        1997       1998F       1999F       2000F       2001F       2002F 
                                        -------------------------------------------------------------------------------------------

                                                                                                                                   
Sales                                   $25,365    $24,438     $27,105     $27,783     $28,477     $29,189     $29,919     $30,667 
Less Discounts Allowed                       $0         $0          $0          $0          $0          $0          $0          $0 
                                        ------------------------------------------------------------------------------------------ 
Total Sales                             $25,365    $24,438     $27,105     $27,783     $28,477     $29,189     $29,919     $30,667 
COST OF GOODS SOLD                                                                                                                 
     Cost of Goods Sold - Food          $16,844    $16,225     $17,997     $18,364     $18,851     $19,322     $19,865     $20,362 
     Labor Costs                             $0         $0          $0          $0          $0          $0          $0          $0 
     Food Service Supplies                   $0         $0          $0          $0          $0          $0          $0          $0 
                                        ------------------------------------------------------------------------------------------ 
          TOTAL COST OF GOOD SOLD       $16,844    $16,225     $17,997     $18,364     $18,851     $19,322     $19,865     $20,362 
                                        ------------------------------------------------------------------------------------------ 

     GROSS PROFIT                        $8,521     $8,213      $9,108      $9,418      $9,626      $9,867     $10,054     $10,305 
     GROSS PROFIT %                        33.6%      33.6%       33.6%       33.6%       33.6%       33.6%       33.6%       33.6%

OPERATING EXPENSE                                                                                                                  
     Administrative & General            $2,103     $1,815      $2,196      $1,250      $1,225      $1,197      $1,227      $1,257 
     Sales & Marketing                   $1,520     $1,536      $1,664      $2,584      $2,620      $2,685      $2,693      $2,729 
     Royalties                           $1,015       $978      $1,084      $1,111      $1,139      $1,168      $1,197      $1,227 
     Energy & Property Maintenance       $3,134     $3,172      $3,420      $3,445      $3,560      $3,678      $3,785      $3,879 
     Amortization                                                                                                                  
     Rebates & Rental Expense             ($269)     ($249)      ($265)       $200        $206        $211        $217        $224 
                                        ------------------------------------------------------------------------------------------ 
          Total Operating Expenses       $7,503     $7,252      $8,099      $8,590      $8,749      $8,939      $9,118      $9,317 
                                        ------------------------------------------------------------------------------------------ 
                                        ------------------------------------------------------------------------------------------ 
          Operating Profit (Loss)/EBIT   $1,018       $961      $1,009        $828        $877        $928        $936        $988 
          Operating Profit (Loss)%          4.0%       3.9%        3.7%        3.0%        3.1%        3.2%        3.1%        3.2%
                                        ------------------------------------------------------------------------------------------ 

Non-Recurring Charges                        $0         $0          $0          $0          $0          $0          $0          $0 

OTHER INCOME (EXPENSE)                                                                                                             
     Other Income                            $0         $0          $0          $0          $0          $0          $0          $0 
     Net Interest Income (Expense)        ($512)     ($403)      ($420)      ($352)      ($314)      ($289)      ($265)      ($241)

     Earn out / bonus payments                                                                                                     
                                        ------------------------------------------------------------------------------------------ 
          TOTAL OTHER INCOME              ($512)     ($403)      ($420)      ($352)      ($314)      ($289)      ($265)      ($241)
                                        ------------------------------------------------------------------------------------------ 

          PRETAX INCOME (LOSS)             $506       $558        $589        $476        $563        $639        $671        $748 
Taxes Paid                                   $0         $0          $0        $162        $191        $217        $228        $254 
                                        ------------------------------------------------------------------------------------------ 
          NET INCOME (LOSS)                $506       $558        $589        $314        $372        $422        $443        $493 
                                        ========================================================================================== 

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EX-99.2
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Wendy's of West Michigan -- Aggressive
 Historical and Forecasted Cash Flow Statement
For the Year Ending December 31,

                                                        [Enlarge/Download Table]


                                                      ------------------------------------------------------------------------------
                                                                                                       Forecasted                   
                                                         1995     1996      1997      1998F     1999F     2000F    2001F      2002F 
                                                      ------------------------------------------------------------------------------
                                                                                                                                    
Operating Activities                                                                                                                

NET INCOME (LOSS)                                         $506     $558      $589      $314      $372      $422      $443      $493 
Depreciation & Amortization                               $971     $857      $853      $896      $939      $981    $1,024    $1,067 

Provided (used) by changes in                                                                                                       
     Accounts Receivable - Including related parties      ($53)   ($164)     $134       ($2)      ($2)      ($2)      ($2)      ($2)
     Inventory                                           ($146)    ($34)      $11       ($3)      ($5)      ($4)      ($5)      ($5)
     Prepaid Expenses                                      $14       $5       ($3)      ($3)      ($3)      ($3)      ($3)          
     Deferred Taxes                                         $0       $0        $0        $0        $0        $0        $0           
     Other                                                  $0       $0        $0        $0        $0        $0        $0        $0 
     Accounts Payable                                     $785     ($14)     ($38)      $15       $20       $19       $22       $20 
     Accrued Liabilities                                  $679      $45     ($161)      $11       $15       $15       $17       $16 
     Other Current Liabilities                             $39       $0       $74      ($74)       $0        $0        $0        $0 
     Other Non-Current Liabilities                          $0      $61      ($61)       $0        $0        $0        $0        $0 
     Other Non-Current Assets                            ($248)    ($34)      $30       ($6)      ($6)      ($7)      ($7)      ($7)
                                                      ------------------------------------------------------------------------------
CASH PROVIDED BY OPERATING ACTIVITIES                   $2,533   $1,289    $1,436    $1,148    $1,329    $1,421    $1,489    $1,579 
                                                      ------------------------------------------------------------------------------

Investing Activities                                                                                                                
Capital expenditures (net)                            ($11,809)   ($732)    ($692)    ($300)    ($300)    ($300)    ($300)    ($300)
Marketable Securities                                       $0       $0        $0      $365      $779      $871      $939    $1,029 
                                                      ------------------------------------------------------------------------------
CASH PROVIDED BY INVESTING                            ($11,809)   ($732)    ($692)      $65      $479      $571      $639      $729 
                                                      ------------------------------------------------------------------------------

Financing Activities                                                                                                                
Issuance (Repayment) of:                                                                                                            
     Current Portion of LT Debt                           $160      $72      $158     ($140)       $0        $0        $0        $0 
     Revolver                                               $0       $0        $0        $0        $0        $0        $0        $0 
     Senior Debt                                        $2,500    ($308)    ($663)    ($250)    ($250)    ($250)    ($250)    ($250)
     Sellers Note                                       $1,809     $145     ($264)       $0        $0        $0        $0        $0 
     Subordinated Debt                                      $0       $0        $0        $0        $0        $0        $0        $0 
     Sub Jr. Dept                                           $0       $0        $0        $0        $0        $0        $0        $0 
Common Stock Dividends                                  $2,353      $69     ($385)       $0        $0        $0        $0        $0 
Issuance (Repurchase) of Common Stock                       $0       $0        $0        $0        $0        $0        $0        $0 
                                                      ------------------------------------------------------------------------------
CASH PROVIDED BY FINANCING                              $6,822     ($22)  ($1,154)    ($390)    ($250)    ($250)    ($250)    ($250)
                                                      ------------------------------------------------------------------------------

Other Miscellaneous Cash Flow Adjustments               $3,865    ($169)      $40                                                   

Cash at Beginning of Period                                 $0     $411      $777      $407      $500      $500      $500      $500 
Increase (Decrease) in Cash                               $411     $366     ($370)      $93        $0        $0        $0        $0 
                                                      ------------------------------------------------------------------------------

                                                      ------------------------------------------------------------------------------
     CASH AT END OF PERIOD                                $411     $777      $407      $500      $500      $500      $500      $500 
                                                      ==============================================================================

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--------------------------------------------------------------------------------

 HISTORICAL & PROJECTED FINANCIAL STATEMENTS
 (CONSERVATIVE SCENARIO)

 -------------------------------------------------------------------

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EX-99.2
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Wendy's of West Michigan -- Conservative
 Historical and Forecasted Balance Sheet
As of December 31,

                                                        [Enlarge/Download Table]


                                                      -----------------------------------------------------------------------------
                                                                                                      Forecasted                   
          ASSETS                                        1995      1996       1997     1998F     1999F    2000F     2001F     2002F 
                                                      -----------------------------------------------------------------------------
                                                                                                                                   
CURRENT ASSETS                                                                                                                     
     Cash                                                $411      $777      $407      $500      $500      $500      $500      $500
     Marketable Securities                                 $0        $0        $0      $117      $618    $1,184    $1,829    $2,541
     Accounts Receivable - Including related parties      $53      $217       $83       $85       $87       $89       $92       $94
     Inventory                                           $146      $180      $169      $173      $178      $182      $187      $191
     Prepaid Expenses                                    $139      $125      $120      $123      $126      $129      $132      $136
     Deferred Taxes                                        $0        $0        $0        $0        $0        $0        $0        $0
     Other                                                 $0        $0        $0        $0        $0        $0        $0        $0
                                                      -----------------------------------------------------------------------------
          CURRENT ASSETS                                 $749    $1,299      $779      $998    $1,509    $2,084    $2,739    $3,462
                                                      -----------------------------------------------------------------------------

Property, Plant & Equipment                           $11,809   $12,541   $13,233   $13,533   $13,833   $14,133   $14,433   $14,733
Accumulated Depreciation                               $6,138    $6,644    $7,339    $8,037    $8,777    $9,561   $10,387   $11,256
                                                      -----------------------------------------------------------------------------
     NET PROPERTY & EQUIPMENT                          $5,671    $5,897    $5,894    $5,496    $5,056    $4,572    $4,046    $3,477
                                                      -----------------------------------------------------------------------------

OTHER ASSETS                                                                                                                       
     Goodwill & Start-up Costs                         $2,163    $1,981    $1,783    $1,585    $1,387    $1,189      $991      $793
     Other Non-Current Assets                            $248      $282      $252      $258      $265      $271      $278      $285
                                                      -----------------------------------------------------------------------------
          TOTAL OTHER ASSETS                           $2,411    $2,263    $2,035    $1,843    $1,652    $1,460    $1,269    $1,078
                                                      -----------------------------------------------------------------------------

                                                      -----------------------------------------------------------------------------
                        TOTAL ASSETS                   $8,831    $9,459    $8,708    $8,338    $8,217    $8,117    $8,054    $8,016
                                                                                                                            =======

          LIABILITY AND OWNERS' EQUITY                                                                                             
CURRENT LIABILITIES                                                                                                                
     Accounts Payable                                    $785      $771      $733      $751      $771      $789      $809      $829
     Accrued Liabilities                                 $679      $724      $563      $577      $592      $606      $621      $637
     Other Current Liabilities                            $39       $39      $113       $39       $39       $39       $39       $39
     Revolver                                              $0        $0        $0        $0        $0        $0        $0        $0
     Total Current Portion of LT Debt                    $160      $232      $390      $250      $250      $250      $250      $250
                                                      -----------------------------------------------------------------------------
          TOTAL CURRENT LIABILITIES                    $1,663    $1,766    $1,799    $1,617    $1,653    $1,685    $1,720    $1,755
                                                      -----------------------------------------------------------------------------

Senior Debt                                            $2,500    $2,192    $1,529    $1,279    $1,029      $779      $529      $279
Capital Leases                                         $1,809    $1,954    $1,690    $1,690    $1,690    $1,690    $1,690    $1,690
Shareholder Debt                                           $0        $0        $0        $0        $0        $0        $0        $0
Sub Jr. Debt                                               $0        $0        $0        $0        $0        $0        $0        $0
                                                      -----------------------------------------------------------------------------
          TOTAL LONG TERM DEBT                         $4,309    $4,146    $3,219    $2,969    $2,719    $2,469    $2,219    $1,969
                                                      -----------------------------------------------------------------------------
Other Non-Current Liab.                                    $0       $61        $0        $0        $0        $0        $0        $0
                                                      -----------------------------------------------------------------------------
                        TOTAL LIABILITY                $5,972    $5,973    $5,018    $4,586    $4,372    $4,154    $3,939    $3,724
                                                      -----------------------------------------------------------------------------

          SHAREHOLDERS EQUITY                                                                                                      
Common Stock & Paid in Capital                             $0        $0        $0        $0        $0        $0        $0          
Retained Earnings                                      $2,859    $3,486    $3,690    $3,751    $3,845    $3,963    $4,116    $4,292
                                                      -----------------------------------------------------------------------------
          TOTAL EQUITY                                 $2,859    $3,486    $3,690    $3,751    $3,845    $3,963    $4,116    $4,292
                                                      -----------------------------------------------------------------------------
          TOTAL LIABILITIES & EQUITY                   $8,831    $9,459    $8,708    $8,338    $8,217    $8,117    $8,054    $8,016
                                                      =============================================================================
          Check                                            $0        $0        $0        $0        $0        $0        $0        $0

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EX-99.2
24th Page of 45
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Wendy's of West Michigan -- Conservative
Historical and Forecasted Income Statement
For the Year Ending December 31,

                                                        [Enlarge/Download Table]


                                        ----------------------------------------------------------------------------------------- 
                                                                                                  Forecasted                      
                                          1995        1996        1997       1998F       1999F       2000F       2001F      2002F 
                                        ----------------------------------------------------------------------------------------- 

                                                                                                                                  
Sales                                   $25,365     $24,438     $27,105     $27,783     $28,477     $29,189     $29,919   $30,667 
Less Discounts Allowed                       $0          $0          $0          $0          $0          $0          $0        $0 
                                        ----------------------------------------------------------------------------------------- 
Total Sales                             $25,365     $24,438     $27,105     $27,783     $28,477     $29,189     $29,919   $30,667 
COST OF GOODS SOLD                                                                                                                
     Cost of Goods Sold - Food          $16,844     $16,225     $17,997     $18,448     $18,937     $19,382     $19,866   $20,363 
     Labor Costs                             $0          $0          $0          $0          $0          $0          $0        $0 
     Food Service Supplies                   $0          $0          $0          $0          $0          $0          $0        $0 
                                        ----------------------------------------------------------------------------------------- 
          TOTAL COST OF GOOD SOLD       $16,844     $16,225     $17,997     $18,448     $18,937     $19,382     $19,866   $20,363 
                                        ----------------------------------------------------------------------------------------- 

     GROSS PROFIT                        $8,521      $8,213      $9,108      $9,335      $9,540      $9,808     $10,053   $10,304 
     GROSS PROFIT%                         33.6%       33.6%       33.6%       33.6%       33.6%       33.6%       33.6%     33.6%

OPERATING EXPENSE                                                                                                                 
     Administrative & General            $2,103      $1,815      $2,196      $1,334      $1,395      $1,489      $1,556    $1,625 
     Sales & Marketing                   $1,520      $1,536      $1,664      $2,667      $2,677      $2,715      $2,723    $2,760 
     Royalties                           $1,015        $978      $1,084      $1,111      $1,139      $1,168      $1,197    $1,227 
     Energy & Property Maintenance       $3,134      $3,172      $3,420      $3,528      $3,617      $3,707      $3,815    $3,910 
     Amortization                                                                                                                 
     Rebates & Rental Expense             ($269)      ($249)      ($265)       $250        $256        $261        $267      $274 
                                        ----------------------------------------------------------------------------------------- 
          Total Operating Expenses       $7,503      $7,252      $8,099      $8,890      $9,084      $9,339      $9,557    $9,796 
                                        ----------------------------------------------------------------------------------------- 

                                        ----------------------------------------------------------------------------------------- 
          Operating Profit (Loss)/EBIT   $1,018        $961      $1,009        $445        $456        $469        $496      $508 
          Operating Profit (Loss) %         4.0%        3.9%        3.7%        1.6%        1.6%        1.6%        1.7%      1.7%
                                        ----------------------------------------------------------------------------------------- 

Non-Recurring Charges                        $0          $0          $0          $0          $0          $0          $0        $0 

OTHER INCOME (EXPENSE)                                                                                                            
     Other Income                            $0          $0          $0          $0          $0          $0          $0        $0 
     Net Interest Income (Expense)        ($512)      ($403)      ($420)      ($352)      ($314)      ($289)      ($265)    ($241)

     Earn out/bonus payments                                                                                                      
                                        ----------------------------------------------------------------------------------------- 
          TOTAL OTHER INCOME              ($512)      ($403)      ($420)      ($352)      ($314)      ($289)      ($265)    ($241)
                                        ----------------------------------------------------------------------------------------- 

          PRETAX INCOME (LOSS)             $506        $558        $589         $93        $142        $179        $231      $267 
Taxes Paid                                   $0          $0          $0         $32         $48         $61         $78       $91 
                                        ----------------------------------------------------------------------------------------- 
          NET INCOME (LOSS)                $506        $558        $589         $61         $94        $118        $152      $176 
                                        ========================================================================================= 


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EX-99.2
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WENDY'S OF WEST MICHIGAN -- CONSERVATIVE
 HISTORICAL AND FORECASTED CASH FLOW STATEMENT
FOR THE YEAR ENDING DECEMBER 31,

                                                        [Enlarge/Download Table]


                                                      ------------------------------------------------------------------------------
                                                                                                     Forecasted                     
                                                         1995     1996       1997   1998F     1999F     2000F     2001F       2002F 
                                                      ------------------------------------------------------------------------------

                                                                                                                                    
OPERATING ACTIVITIES                                                                                                                

NET INCOME (LOSS)                                         $506      $558      $589     $61       $94      $118      $152      $176  
Depreciation & Amortization                               $971      $857      $853    $896      $939      $981    $1,024    $1,067  

Provided (used) by changes in                                                                                                       
     Accounts Receivable - Including related parties      ($53)    ($164)     $134     ($2)      ($2)      ($2)      ($2)      ($2) 
     Inventory                                           ($146)     ($34)      $11     ($4)      ($5)      ($4)      ($5)      ($5) 
     Prepaid Expenses                                      $14        $5       ($3)    ($3)      ($3)      ($3)      ($3)           
     Deferred Taxes                                         $0        $0        $0      $0        $0        $0        $0            
     Other                                                  $0        $0        $0      $0        $0        $0        $0        $0  
     Accounts Payable                                     $785      ($14)     ($38)    $18       $20       $18       $20       $20  
     Accrued Liabilities                                  $679       $45     ($161)    $14       $15       $14       $15       $16  
     Other Current Liabilities                             $39        $0       $74    ($74)       $0        $0        $0        $0  
     Other Non-Current Liabilities                          $0       $61      ($61)     $0        $0        $0        $0        $0  
     Other Non-Current Assets                            ($248)     ($34)      $30     ($6)      ($6)      ($7)      ($7)      ($7) 
                                                      ------------------------------------------------------------------------------
CASH PROVIDED BY OPERATING ACTIVITIES                   $2,533    $1,289    $1,436    $900    $1,051    $1,116    $1,195    $1,262  
                                                      ------------------------------------------------------------------------------

INVESTING ACTIVITIES                                                                                                                
Capital expenditures (net)                            ($11,809)    ($732)    ($692)  ($300)    ($300)    ($300)    ($300)    ($300) 
Marketable Securities                                       $0        $0        $0    $117      $501      $566      $645      $712  
                                                      ------------------------------------------------------------------------------
CASH PROVIDED BY INVESTING                            ($11,809)    ($732)    ($692)  ($183)     $201      $266      $345      $412  
                                                      ------------------------------------------------------------------------------

FINANCING ACTIVITIES                                                                                                                
Issuance (Repayment) of:                                                                                                            
     Current Portion of LT Debt                           $160       $72      $158   ($140)       $0        $0        $0        $0  
     Revolver                                               $0        $0        $0      $0        $0        $0        $0        $0  
     Senior Debt                                        $2,500     ($308)    ($663)  ($250)    ($250)    ($250)    ($250)    ($250) 
     Sellers Note                                       $1,809      $145     ($264)     $0        $0        $0        $0        $0  
     Subordinated Debt                                      $0        $0        $0      $0        $0        $0        $0        $0  
     Sub Jr. Dept                                           $0        $0        $0      $0        $0        $0        $0        $0  
Common Stock Dividends                                  $2,353       $69     ($385)     $0        $0        $0        $0        $0  
Issuance (Repurchase) of Common Stock                       $0        $0        $0      $0        $0        $0        $0        $0  
                                                      ------------------------------------------------------------------------------
CASH PROVIDED BY FINANCING                              $6,822      ($22)  ($1,154)  ($390)    ($250)    ($250)    ($250)    ($250) 
                                                      ------------------------------------------------------------------------------

Other Miscellaneous Cash Flow Adjustments               $2,865     ($169)      $40                                                  

Cash at Beginning of Period                                 $0      $411      $777    $407      $500      $500      $500      $500  
Increase (Decrease) in Cash                               $411      $366     ($370)    $93        $0        $0        $0        $0  
                                                      ------------------------------------------------------------------------------

                                                      ------------------------------------------------------------------------------
     CASH AT END OF PERIOD                                $411      $777      $407    $500      $500      $500      $500      $500  
                                                      ==============================================================================

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COMMON STOCK PRICE/VOLUME ANALYSIS
MHGI

----------------------------------------------------------------

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--------------------------------------------------------------------------------
MERITAGE HOSPITALITY GROUP
 STOCK HISTORY
--------------------------------------------------------------------------------

MERITAGE HOSPITALITY GROUP
STOCK PRICE HISTORY   

                                                                [Download Table]

                                                                       
8/2/96                6                                                
8/16/96               5.5                                              
8/30/96               4.35                                             
9/6/96                4.75                                             
9/20/96               4.35                                             
9/27/96               4.625                                            
10/4/96               5.25                                             
10/18/96              6                                                
11/15/96              5.9375                                           
12/6/96               5.5                                              
1/3/97                5.25                                             
1/24/97               5.75                                             
2/7/97                5.375                                            
5/9/97                4                                                
5/23/97               4                                                
7/4/97                3                                                
7/25/97               2.625                                            
8/8/97                3.25                                             
8/29/97               3.1875                                           
            7.0     6.0     5.0     4.0     3.0     2.0     1.0     0.0

MERITAGE HOSPITALITY GROUP
STOCK VOLUME TRADED 

                                                        [Enlarge/Download Table]

                                                                                         
8/2/96              900                                                                  
8/16/96         109,600                                                                  
8/30/96         142,000                                                                  
9/6/96           65,100                                                                  
9/20/96         414,300                                                                  
9/27/96          73,700                                                                  
10/4/96          45,200                                                                  
10/18/96         10,700                                                                  
11/15/96          3,000                                                                  
12/6/96           2,200                                                                  
1/3/97            9,900                                                                  
1/24/97          10,300                                                                  
2/7/97           11,800                                                                  
5/9/97           13,000                                                                  
5/23/97           2,400                                                                  
7/4/97              300                                                                  
7/25/97             200                                                                  
8/8/97            3,900                                                                  
8/29/97           3,800                                                                  
          450,000   400,000  350,000  300,000  250,000  200,000  150,000  100,000  50,000

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 ASSET/BOOK VALUE ANALYSIS

--------------------------------------------------------------------

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THIS ANALYSIS NOT UTILIZED

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--------------------------------------------------------------------------------

 DISCOUNTED CASH FLOW ANALYSIS
 (BUDGETED SCENARIO)

------------------------------------------------------------- 

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WENDY'S OF WEST MICHIGAN -- BUDGETED
 DISCOUNTED CASH FLOW ANALYSIS SUMMARY

                                                        [Enlarge/Download Table]


                                               1998F        1999F       2000F        2001F        2002F 
                                          --------------------------------------------------------------
                                                                                                        
Sales                                         $27,783      $28,477     $29,189      $29,919     $30,667 
Sales Growth                                      2.5%         2.5%        2.5%         2.5%        2.5%
EBIT                                             $778         $855        $906         $973      $1,028 
EBIT%                                             2.8%         3.0%        3.1%         3.3%        3.4%
Adjustments                                                                                             
-----------                                                                                             
Rebates                                          $271         $278        $285         $292        $299 
Additional Rent Expense                         ($496)       ($509)      ($521)       ($534)      ($548)
Expense Reduction                                  $0           $0          $0           $0          $0 
                                          --------------------------------------------------------------
Total Adjustments                               ($225)       ($231)      ($236)       ($242)      ($249)

Adjusted EBIT                                    $553         $624        $670         $731        $779 
                                          --------------------------------------------------------------
Adjusted EBIT%                                    2.0%         2.2%        2.3%         2.4%        2.5%

Taxes @ 34.0%                                   ($188)       ($212)      ($228)       ($249)      ($265)
NOL Carry Forward Tax Credit                       $0           $0          $0           $0          $0 
Sources-(Uses) of Cash                                                                                  
     Net Change in Working Capital               ($51)         $24         $24          $25         $25 
     Depreciation & Amortization                 $896         $939        $981       $1,024      $1,067 
     Capital Expenditures                       ($300)       ($300)      ($300)       ($300)      ($300)

                                          ==============================================================
Operating Cash Flow                              $910       $1,074      $1,148       $1,232      $1,307 
                                          ==============================================================

Takeout Value                                                                                           
     EBIT                                                                                          $779 
     Less NOL Carry Forward               (No adjustment using EBIT multiple)                        $0 
                                                                                            ------------
     Sustainable Cash Flow                                                                         $779 
     EBIT Multiple                                                                                 $5.5 
                                                                                            ------------
     Takeout                                                                                     $4,286 

Cash Flow Discount Rate                          13.6%                                                  
Takeout Discount Rate                            13.6%                                                  

Cash Flows from Operations                       $910       $1,074      $1,148       $1,232      $1,307 
Cash Flow from Takeout                                                                           $4,286 
                                          --------------------------------------------------------------
Present Value of Cash Flows from Opers.          $801         $833        $784         $741        $692 
Present Value of Cash Flows from Takeout                                                         $2,269 
                                          ==============================================================
Present Value Total                              $801       $1,634      $2,418       $3,159      $6,119 

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WENDY'S OF WEST MICHIGAN -- BUDGETED
 DISCOUNTED CASH FLOW ANALYSIS SUMMARY

                                                        [Enlarge/Download Table]


Weighted Average Cost of Capital Calculation                                                                           
-----------------------------------------------------------------------------------------------------------------------
                                                      Proportion    Opportunity      Tax      After-Tax   Contribution 
Source of Capital                                     of Capital        Cost       Benefit       Cost       to WACC    
-----------------------------------------------------------------------------------------------------------------------
                                                                                                                       
Senior Debt                                                60.0%         9.0%       34.0%         5.9%        3.6%     
Mezzanine Debt                                              0.0%        20.0%       34.0%        13.2%        0.0%     
Equity                                                     40.0%        25.0%                    25.0%       10.0%     
                                                                                                         ---------     
Weighted Average Cost of Capital                                                                             13.6%     
                                                                                                         ---------     

------------------------------------------------------------------------------------------------------------------     

Discounted Cash Flow Assumptions                                           Takeout Calculation                         
----------------------------------------------------------------           ---------------------------------------     
Cash Flow Discount Rate / WACC                             13.6%           EBIT                              $779      
EBIT Multiple                                               5.5x           EBIT Multiple                      5.5x     
                                                                                                         ---------     
Takeout Discount Rate                                      13.6%           Takeout Value                   $4,284      
----------------------------------------------------------------           ---------------------------------------     


Discounted Cash Flow Calculation                                                                                       
------------------------------------------------------------------------------------------------------------------     
                                                                # of Years to      Discount  Present                   
                            Year                   Cash Flow        Discount        Factor    Value    Price/Share     
                         -----------------------------------------------------------------------------------------     
                                                                                                                       
                         1998F                     $        910          1           0.8806    $801        $637.56     
                         1999F                     $      1,074          2           0.7754    $833        $662.62     
                         2000F                     $      1,148          3           0.6828    $784        $623.65     
                         2001F                     $      1,232          4           0.6012    $741        $589.29     
                         2002F                     $      1,307          5           0.5294    $692        $550.48     
                         Take out                  $      4,284          5           0.5294  $2,268      $1,804.69     
                                                                                            ----------------------     
Intrinsic  Value                                                                             $6,119      $4,868.42     

Adjustment to Shareholder Value                                                                                        
-------------------------------------                                                                                  
Plus Excess Cash & Mkt. Secs.                                                                    $0          $0.00     
Plus: Prepaids & Other Assets                                                                    $0          $0.00     
Plus: Remaining NOL Value                                                                        $0          $0.00     
Less Existing Debt                                                                          ($3,609)    ($2,871.58)    
                                                                                            ----------------------     
SHAREHOLDER VALUE                                                                            $2,510      $1,996.84     
                                                                                            ----------------------     
Price / Share                                                                                                          
------------------------------------------------------------------------------------------------------------------     


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--------------------------------------------------------------------------------

 DISCOUNTED CASH FLOW ANALYSIS
(AGGRESSIVE SCENARIO)   

------------------------------------------------------------

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WENDY'S OF WEST MICHIGAN -- AGGRESSIVE
 DISCOUNTED CASH FLOW ANALYSIS SUMMARY

                                                        [Enlarge/Download Table]


                                               1998F        1999F       2000F        2001F       2002F  
                                          --------------------------------------------------------------
                                                                                                        
Sales                                         $27,783      $28,477     $29,189      $29,919     $30,667 
Sales Growth                                      2.5%         2.5%        2.5%         2.5%        2.5%
EBIT                                           $1,028       $1,083      $1,139       $1,153      $1,212 
EBIT%                                             3.7%         3.8%        3.9%         3.9%        4.0%
Adjustments                                                                                             
-----------                                                                                             
Rebates                                          $296         $303        $310         $317        $324 
Additional Rent Expense                         ($496)       ($509)      ($521)       ($534)      ($548)
Expense Reduction                                  $0           $0          $0           $0          $0 
                                          --------------------------------------------------------------
Total Adjustments                               ($200)       ($206)      ($211)       ($217)      ($224)

Adjusted EBIT                                    $828         $877        $928         $936        $988 
                                          --------------------------------------------------------------
Adjusted EBIT%                                    3.0%         3.1%        3.2%         3.1%        3.2%

Taxes @ 34.0%                                   ($282)       ($298)      ($316)       ($318)      ($336)
NOL Carry Forward Tax Credit                       $0           $0          $0           $0          $0 
Sources - (Uses) of Cash                                                                                
     Net Change in Working Capital               ($56)         $25         $24          $29         $25 
     Depreciation & Amortization                 $896         $939        $981       $1,024      $1,067 
     Capital Expenditures                       ($300)       ($300)      ($300)       ($300)      ($300)

                                          --------------------------------------------------------------
Operating Cash Flow                            $1,086       $1,243      $1,318       $1,370      $1,445 
                                          ==============================================================

Takeout Value                                                                                           
     EBIT                                                                                          $988 
     Less NOL Carry Forward               (No Adjustment using EBIT multiple)                        $0 
                                                                                            ------------
     Sustainable Cash Flow                                                                         $988 
     EBIT Multiple                                                                                  5.5 
                                                                                            ------------
     Takeout                                                                                     $5,435 

Cash Flow Discount Rate                          13.6%                                                  
Takeout Discount Rate                            13.6%                                                  

Cash Flows from Operations                     $1,086       $1,243      $1,318       $1,370      $1,445 
Cash Flow from Takeout                                                                           $5,435 
                                          --------------------------------------------------------------
Present Value of Cash Flows from Opers.          $957         $964        $900         $824        $765 
Present Value of Cash Flows from Takeout                                                         $2,878 
                                          ==============================================================
Present Value Total                              $957       $1,920      $2,820       $3,644      $7,287 


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WENDY'S OF WEST MICHIGAN - AGGRESSIVE 
DISCOUNTED CASH FLOW ANALYSIS SUMMARY 

                                                        [Enlarge/Download Table]

Weighted Average Cost of Capital Calculation                                                                                      
                                            Preparation of          Opportunity                                   Contribution to 
Source of Capital                               Capital                 Cost        Tax Benefit   After-Tax Cost       WACC       

                                                                                                                                  
Senior Debt                                      60.0%                 9.0%             34.0%         5.9%              3.6%      
Mezzazine Debt                                    0.9%                20.0%             34.0%        13.2%              0.0%      
Equity                                           49.9%                23.0%                          23.0%             10.0%      
                                                                                                                     ------       
Weighted Average Cost of Capital                                                                                       13.6%      
                                                                                                                     ======       

Discounted Cash Flow Assumptions                                              Takeout Calculation                                 
Cash Flow Discount Rate/WACC                        13.6 %                    EBIT                                        $988    
EBIT Multiple                                         5.5x                    EBIT Multiple                                5.5x   
                                                                                                                        ------    
Takeout Discount Rate                               13.6 %                    Takeout Value                             $1,439    

       Discounted Cash Flow Calculation                                                                                           
                                                                 # of Years To       Discount                                     
                                        Year     Cash Flow         Discount           Factor       Present Value   Price/Share    
                                            --------------------------------------------------------------------------------------
                                       1998F     $1,084                1               0.6606          $937           $762.22     
                                       1999F     $1,243                2               0.7734          $963           $766.39     
                                       2000F     $1,318                3               0.6820          $900           $713.99     
                                       2001F     $1,371                4               0.6012          $824           $655.80     
                                       2002F     $1,445                5               0.5294          $765           $608.67     
                                   Take out      $5,435                5               0.5294        $2,878         $2,289.55     
                                                                                               ------------------------------     
             Intrinsic Value                                                                         $7,287         $5,797.82     

             Adjustment to Shareholder Value                                                                                      
             -------------------------------                                                                                      
              Plus Excess Cash/Mkt Secu.                                                                 $0             $0.00     
              Plus: Prepaids & Other Assets                                                              $0             $0.09     
              Plus: Remaining NOL Value                                                                  $0             $0.00     
                Less Existing Debt                                                                  ($3,609)        $2,871.58     
                                                                                                    -------------------------     
              Shareholder Value                                                                      $3,678         $2,926.24     
                                                                                                    =========================     
              Price/Share                                                                                                         


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 DISCOUNTED CASH FLOW ANALYSIS
 (CONSERVATIVE SCENARIO)

--------------------------------------------------------------- 

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WENDY'S OF WEST MICHIGAN -- CONSERVATIVE
 DISCOUNTED CASH FLOW ANALYSIS SUMMARY

                                                        [Enlarge/Download Table]


                                               1998F        1999F       2000F        2001F       2002F  
                                          --------------------------------------------------------------
                                                                                                        
Sales                                         $27,783      $28,477     $29,189      $29,919     $30,667 
Sales Growth                                      2.5%         2.5%        2.5%         2.5%        2.5%
EBIT                                             $695         $712        $730         $763        $782 
EBIT%                                             2.5%         2.5%        2.5%         2.6%        2.6%
Adjustments                                                                                             
-----------                                                                                             
Rebates                                          $246         $253        $260         $267        $274 
Additional Rent Expense                         ($496)       ($509)      ($521)       ($534)      ($548)
Expense Reduction                                  $0           $0          $0           $0          $0 
                                          --------------------------------------------------------------
Total Adjustments                               ($250)       ($256)      ($261)       ($267)      ($274)

Adjusted EBIT                                    $445         $456        $469         $496        $508 
                                          --------------------------------------------------------------
Adjusted EBIT%                                    1.6%         1.6%        1.6%         1.7%        1.7%

Taxes @ 34.0%                                   ($151)       ($155)      ($159)       ($169)      ($173)
NOL Carry Forward Tax Credit                       $0           $0          $0           $0          $0 
Sources - (Uses) of Cash                                                                                
     Net Change in Working Capital               ($51)         $25         $22          $25         $25 
     Depreciation & Amortization                 $896         $939        $981       $1,024      $1,067 
     Capital Expenditures                       ($300)       ($300)      ($300)       ($300)      ($300)

                                          ==============================================================
Operating Cash Flow                              $838         $965      $1,013       $1,077      $1,128 
                                          ==============================================================

Takeout Value                                                                                           
     EBIT                                                                                          $508 
     Less NOL Carry Forward               (No adjustment using EBIT multiple)                        $0 
                                                                                            ------------
     Sustainable Cash Flow                                                                         $508 
     EBIT Multiple                                                                                  5.5 
                                                                                            ------------
     Takeout                                                                                     $2,794 

Cash Flow Discount Rate                          13.6%                                                  
Takeout Discount Rate                            13.6%                                                  

Cash Flows from Operations                       $838         $965      $1,013       $1,077      $1,128 
Cash Flow from Takeout                                                                           $2,794 
                                          --------------------------------------------------------------
Present Value of Cash Flows from Opers.          $738         $748        $692         $647        $597 
Present Value of Cash Flows from Takeout                                                         $1,479 
                                          ==============================================================
Present Value Total                              $738       $1,487      $2,178       $2,826      $4,902 


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 WENDY'S OF WEST MICHIGAN - CONSERVATIVE
 DISCOUNTED CASH FLOW ANALYSIS SUMMARY

                                                        [Enlarge/Download Table]


Weighted Average Cost of Capital Calculation                                                                                     

                                    Preparation of   Opportunity                                        Contribution to          
SOURCE OF CAPITAL                      Capital          Cost         Tax Benefit    After-Tax Cost            WACC               
                                                                                                                                 
Senior Debt                             60.0%            9.0%           34.0%            5.9%                 3.6%               
Mezzanine Debt                           0.0%           20.0%           34.0%           13.2%                 0.0%               
Equity                                  40.0%           25.0%                           23.0%                10.0%               
                                                                                                             ----                
Weighted Average Cost of Capital                                                                             13.6%               
                                                                                                             ====                

Discounted Cash Flow Assumptions                                                           Takeout Calculation                   
Cash Flow Discount Rate/WACC             13.6%                                             EBIT                          $598    
EBIT Multiple                             5.5x                                             EBIT Multiple                 5.5x    
                                                                                                                       ------    
Takeout Discount Rate                    13.6%                                             Takeout Value               $2,793    
                                                                                                                       ======    

         Discounted Cash Flow Calculations                                                                                       
                                                                     # of Years to   Discount                                    
                                                Year     Cash Flow     Discount       Factor      Present Value      Price/Share 
                                                     ----------------------------------------------------------------------------
                                               1998F        $839          1           0.8806           $738           $587.58    
                                               1999F        $965          2           0.7754           $748           $595.24    
                                               2000F      $1,014          3           0.6828           $692           $550.61    
                                               2001F      $1,077          4           0.6012           $647           $324.99    
                                               2002F      $1,128          5           0.5294           $597           $475.10    
                                            Take out      $2,793          5           0.5294         $1,479         $1,176.53    
                                                                                                    --------------------------   
         Intrinsic Value                                                                             $4,982         $3,900.04    

         Adjustment to Shareholder Value                                                                                         
         -------------------------------                                                                                         
         Plus Excess Cash/Mkt. Secu.                                                                     $0             $0.00    
         Plus: Prepaids & Other Assets                                                                   $0             $0.00    
         Plus: Remaining NOL Value                                                                       $0             $0.00    
           Less Existing Debt                                                                       ($3,609)       ($2,071.58)   
                                                                                                    --------------------------   
         Shareholder Value                                                                           $1,293         $1,028.47    
                                                                                                    ==========================   
         Price/Share                                                                                                             

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 COMPARABLE COMPANY ANALYSIS

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                                                        [Enlarge/Download Table]


                  WENDYS OF WEST MICHIGAN LIMITED PARTNERSHIP                                                       
              ANALYSIS OF COMPARABLE PUBLICITY - TRADED COMPANIES                                                   

                                                                         Stock Price(1)                             
                                                         -----------------------------------------                  
Company                               FYE       Symbol            Close      52 WK H      52 WK L                   
--------------------------------------------------------------------------------------------------                  

                                                                                                                    
AU BON PAIN CO., INC.                12/30      ABPCA              $8.75       $9.00        $5.44                   
BLIMPIE INTERNATIONAL, INC.           6/30       BMPE              $4.56      $13.25        $4.38                   
BOSTON CHICKEN, INC.                 12/31       BOST             $14.13      $41.50       $10.63                   
SCHLOTZSKY'S, INC.                   12/31       BUNZ             $18.75      $20.38        $9.25                   
BACK YARD BURGERS, INC.              12/30       BYBI              $1.88       $2.44        $1.63                   
CHECKERS DRIVE-IN REST.               1/1        CHKR              $1.25       $3.03        $0.72                   
CKE RESTAURANTS, INC.                 1/31       CKR              $42.88      $43.13       $18.38                   
CONSOLIDATED PRODUCTS                 9/27       COP              $18.06      $19.00       $14.00                   
DAVCO RESTAURANTS, INC.               9/30       DVC              $17.88      $18.13        $8.38                   
EINSTEIN/NOAH BAGEL CORP             12/31       ENBX             $12.69      $36.50        $8.75                   
KOO KOO ROO, INC.                    12/31       KKRO              $5.31       $8.81        $3.50                   
MCDONALD'S CORPORATION               12/31       MCD              $46.69      $54.88       $42.50                   
MORGAN'S FOODS, INC.                  3/3         MR               $2.13       $4.13        $1.50                   
NATHAN'S FAMOUS                       3/31       NATH              $4.25       $4.56        $2.75                   
NPC INTERNATIONAL, INC.               3/26       NPCI             $12.44      $12.63        $7.88                   
PJ AMERICA, INC.                     12/31       PJAM             $15.94      $22.25       $12.13                   
PAPA JOHN'S INT'L, INC.              12/31       PZZA             $33.00      $39.50       $22.63                   
QUALITY DINING, INC.                 10/29       QDIN              $6.06      $30.50        $3.38                   
RALLY'S HAMBURGERS, INC.             12/31       RLLY              $2.88       $5.00        $1.88                   
SBARRO, INC.                         12/31       SBA              $27.00      $29.75       $24.25                   
SHOWBIZ PIZZA TIME, INC.             12/29       SHBZ             $23.88      $27.38       $14.00                   
TACO CABANA, INC.                    12/31       TACO              $5.50       $8.13        $3.75                   
WENDY'S INTERNATIONAL                12/31       WEN              $21.88      $27.94       $18.25                   



                                     Shares        Market         Agg.       Funded       Debt/                     
Company                              Outsdg.       Equity        Value(2)     Debt       Equity(5)                  
-----------------------------------------------------------------------------------------------                     
                                      (000,S)       ($MM)       ($MM)        ($MM)                                  

AU BON PAIN CO., INC.                 10,102         $88.4       $167.7       $82.3         91.0%                   
BLIMPIE INTERNATIONAL, INC             9,526         $43.4        $40.2        $0.0          0.0%                   
BOSTON CHICKEN, INC.                  68,318        $965.3     $1,521.7      $732.5         73.0%                   
SCHLOTZSKY'S, INC.                     5,549        $104.0       $100.3        $3.8         11.0%                   
BACK YARD BURGERS, INC.                4,246          $8.0         $9.2        $2.1         26.0%                   
CHECKERS DRIVE-IN REST.               60,750         $75.9       $110.7       $38.7         73.0%                   
CKE RESTAURANTS, INC.                 41,786      $1,791.8     $1,849.7       $86.1         38.0%                   
CONSOLIDATED PRODUCTS                 16,535        $298.6       $350.3       $53.1         75.0%                   
DAVCO RESTAURANTS, INC.                6,429        $115.0       $167.1       $53.5        114.0%                   
EINSTEIN/NOAH BAGEL CORP              33,270        $422.2       $477.0      $125.0         37.0%                   
KOO KOO ROO, INC.                     17,167         $91.2        $84.3        $2.4          3.0%                   
MCDONALD'S CORPORATION               688,017     $32,123.5    $37,563.9    $5,742.6         66.0%                   
MORGAN'S FOODS, INC.                   2,942          $6.3        $16.4       $12.6        399.0%                   
NATHAN'S FAMOUS                        4,722         $20.1        $19.9        $0.0          0.0%                   
NPC INTERNATIONAL, INC.               24,668        $306.9       $511.1      $209.5        206.0%                   
PJ AMERICA, INC.                       5,505         $87.7        $83.9        $0.0          0.0%                   
PAPA JOHN'S INT'L, INC.               28,958        $955.6       $947.7        $1.5          1.0%                   
QUALITY DINING, INC.                  16,910        $102.5       $241.2      $140.8        204.0%                   
RALLY'S HAMBURGERS, INC.              20,826         $60.0       $125.8       $69.1        370.0%                   
SBARRO, INC.                          20,440        $551.9       $459.1        $0.0          0.0%                   
SHOWBIZ PIZZA TIME, INC.              18,753        $447.8       $464.0       $28.9         18.0%                   
TACO CABANA, INC.                     14,827         $81.5        $96.4       $14.9         13.0%                   
WENDY'S INTERNATIONAL                131,704      $2,881.7     $2,877.6      $246.6         18.0%                   


                                                                                      Aggregate Value               
                                                                                   As a Multiple of L12M:           
                                                                     -----------------------------------------------
                                               LTM                          L12M            L12M           L12M     
                              ---------------------------------------                                               
Company                                Sales4       EBIT4      EBITDA4      Sales           EBIT          EBITDA    
--------------------------------------------------------------------------------------------------------------------
                                       ($MM)        ($MM)       ($MM)                                               

                                                                                                                    
AU BON PAIN CO., INC.                  $243.4        $4.6        $21.2        0.7 x          36.5 x           7.9 x 
BLIMPIE INTERNATIONAL, IN               $37.8        $4.7         $5.1        1.1 x           8.6 x           7.9 x 
BOSTON CHICKEN, INC.                   $334.0      $108.8       $138.3        4.6 x          14.0 x          11.0 x 
SCHLOTZSKY'S, INC.                      $22.4        $2.8         $4.6        4.5 x          35.8 x          21.8 x 
BACK YARD BURGERS, INC.                 $24.5        $0.3         $1.4        0.4 x          30.7 x           6.6 x 
CHECKERS DRIVE-IN REST.                $155.8      ($18.8)       ($6.5)       0.7 x          n/a  x           n/a x 
CKE RESTAURANTS, INC.                  $696.6       $50.1        $81.1        2.7 x          36.9 x          22.8 x 
CONSOLIDATED PRODUCTS                  $255.4       $25.0        $37.8        1.4 x          14.0 x           9.3 x 
DAVCO RESTAURANTS, INC.                $221.4       $16.3        $24.9        0.8 x          10.2 x           6.7 x 
EINSTEIN/NOAH BAGEL CORP                $55.7        $4.1         $9.5        8.6 x         116.3 x          50.2 x 
KOO KOO ROO, INC.                       $45.0      ($13.6)       ($8.3)       1.9 x          n/a  x           n/a x 
MCDONALD'S CORPORATION              $11,045.6    $2,655.9     $3,413.8        3.4 x          14.1 x          11.0 x 
MORGAN'S FOODS, INC.                    $38.3        $0.4         $2.1        0.4 x          40.9 x           7.8 x 
NATHAN'S FAMOUS                         $26.7        $1.3         $2.8        0.7 x          15.3 x           7.1 x 
NPC INTERNATIONAL, INC.                $326.0       $35.4        $53.7        1.6 x          14.4 x           9.5 x 
PJ AMERICA, INC.                        $16.8        $1.7         $2.2        5.0 x          49.3 x          38.1 x 
PAPA JOHN'S INT'L, INC.                $392.9       $29.0        $39.9        2.4 x          32.7 x          23.8 x 
QUALITY DINING, INC.                   $286.2       $12.1        $29.1        0.8 x          19.9 x           8.3 x 
RALLY'S HAMBURGERS, INC.               $144.2        $7.8        $18.2        0.9 x          16.1 x           6.9 x 
SBARRO, INC.                           $332.8       $56.5        $79.6        1.4 x           8.1 x           5.8 x 
SHOWBIZ PIZZA TIME, INC.               $319.9       $50.1        $75.8        1.5 x           9.3 x           6.1 x 
TACO CABANA, INC.                      $130.0        $6.9        $16.6        0.7 x          14.0 x           5.8 x 
WENDY'S INTERNATIONAL                $1,994.5      $287.9       $355.9        1.4 x          10.0 x           8.1 x 

            --------------------------------------------------------------------------------------------------------
                  MEDIAN:                                                     1.4 x          15.3 x           8.1   
                  MEAN:                                                       2.1            26.1            13.5   
                  MEAN (excluding high and low)                               1.8            22.3            11.9   
            --------------------------------------------------------------------------------------------------------



                                   Share Price as a Multiple of:                                  Market            
                                 ----------------------------------------------      Book         Equity/           
                                      L12M           1197E           1998E          Value/        Book              
Company                               EPS            EPS(3)          EPS(3)        Share(4)       Value             
----------------------------------------------------------------------------------------------------------          

                                                                                                                    
AU BON PAIN CO., INC.                 n/m x          43.8 x          25.0 x         $7.65       1.1 x               
BLIMPIE INTERNATIONAL, IN            12.7 x           n/a x           n/a x         $1.94       2.4 x               
BOSTON CHICKEN, INC.                 12.7 x          13.2 x          10.5 x        $15.06       0.9 x               
SCHLOTZSKY'S, INC.                   27.2 x          22.9 x          17.4 x         $6.21       3.0 x               
BACK YARD BURGERS, INC.              20.9 x           n/a x           n/a x         $1.95       1.0 x               
CHECKERS DRIVE-IN REST.               n/m x           n/a x           n/a x         $0.87       1.4 x               
CKE RESTAURANTS, INC.                44.8 x          40.5 x          29.6 x         $6.74       6.4 x               
CONSOLIDATED PRODUCTS                18.5 x          17.9 x          15.2 x         $4.56       4.0 x               
DAVCO RESTAURANTS, INC.              31.4 x          16.0 x          14.3 x         $7.78       2.3 x               
EINSTEIN/NOAH BAGEL CORP             21.9 x          20.5 x          15.5 x        $10.01       1.3 x               
KOO KOO ROO, INC.                     n/m x           n/a x          n/a  x         $3.95       1.3 x               
MCDONALD'S CORPORATION               20.1 x          19.2 x          17.1 x        $12.21       3.8 x               
MORGAN'S FOODS, INC.                  n/m x           n/a x          n/a  x         $1.11       1.9 x               
NATHAN'S FAMOUS                      23.6 x           n/a x          n/a  x         $4.76       0.9 x               
NPC INTERNATIONAL, INC.              17.0 x          13.5 x          10.9 x         $4.12       3.0 x               
PJ AMERICA, INC.                      n/m x          23.4 x          19.7 x         $3.89       4.1 x               
PAPA JOHN'S INT'L, INC.              41.1 x          35.9 x          27.7 x         $6.45       5.1 x               
QUALITY DINING, INC.                  n/m x           n/a x          22.4 x         $4.08       1.5 x               
RALLY'S HAMBURGERS, INC.              n/m x          24.0 x           4.8 x         $0.93       3.1 x               
SBARRO, INC.                         14.3 x          13.6 x          12.3 x        $10.19       2.6 x               
SHOWBIZ PIZZA TIME, INC.             23.0 x          18.8 x          16.0 x         $8.45       2.8 x               
TACO CABANA, INC.                    39.3 x          23.9 x          16.7 x         $7.63       0.7 x               
WENDY'S INTERNATIONAL                18.2 x          16.0 x          13.9 x        $10.00       2.2 x               

-----------------------------------------------------------------------------------------------------               
MEDIAN:                                21.x            19.x            16.x         $6.21       2.3 x               
MEAN:                                  24.2            22.7            17.0         $6.11       2.5                 
MEAN (excluding high and low)          23.5            21.9            17.0         $5.93       2.4                 
-----------------------------------------------------------------------------------------------------               

<FN>                                                                                                                

All Financials taken from Strategic Investor data service except as noted                                           

NOTES:   (1)Closing prices as of 9/15/97                                                                            
         (2)Aggregate value equals market value of equity plus total debt and                                       
            preferred stock net of cash and marketable securities                                                   
         (3)Based on median I/B/E/S estimates as of 9/16/97                                                         
         (4)Financials taken from Bloomberg System                                                                  
         (5)Debt/Equity consists of Total Funded Debt to Total Balance Sheet                                        
            Equity                                                                                                  
         (6)Current Ratio consists of latest quarter Current Assets to latest                                       
            quarter Current Liabilities                                                                             


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WENDYS OF WEST MICHIGAN LIMITED PARTNERSHIP 
ANALYSIS OF COMPARABLE PUBLICITY - TRADED COMPANIES 

                                                        [Enlarge/Download Table]


                                                                                 Stock Price(1)                        
                                                                    -------------------------------------              
Company                                    FYE        Symbol             Close      52 WK H      52 WK L               
----------------------------------------------------------------------------------------------------------             

                                                                                                                       
AU BON PAIN CO., INC.                     12/30       ABPCA              $8.75        $9.00       $5.44                
BLIMPIE INTERNATIONAL, INC.               6/30         BMPE              $4.56       $13.25       $4.38                
BOSTON CHICKEN, INC.                      12/31        BOST             $14.13       $41.50      $10.63                
SCHLOTZSKY'S, INC.                        12/31        BUNZ             $18.75       $20.38       $9.25                
BACK YARD BURGERS, INC.                   12/30        BYBI              $1.88        $2.44       $1.63                
CHECKERS DRIVE-IN REST.                    1/1         CHKR              $1.25        $3.03       $0.72                
CKE RESTAURANTS, INC.                     1/31         CKR              $42.88       $43.13      $18.38                
CONSOLIDATED PRODUCTS                     9/27         COP              $18.06       $19.00      $14.00                
DAVCO RESTAURANTS, INC.                   9/30         DVC              $17.88       $18.13       $8.38                
EINSTEIN/NOAH BAGEL CORP                  12/31        ENBX             $12.69       $36.50       $8.75                
KOO KOO ROO, INC.                         12/31        KKRO              $5.31        $8.81       $3.50                
MCDONALD'S CORPORATION                    12/31        MCD              $46.69       $54.88      $42.50                
MORGAN'S FOODS, INC.                       3/3          MR               $2.13        $4.13       $1.50                
NATHAN'S FAMOUS                           3/31         NATH              $4.25        $4.56       $2.75                
NPC INTERNATIONAL, INC.                   3/26         NPCI             $12.44       $12.63       $7.88                
PJ AMERICA, INC.                          12/31        PJAM             $15.94       $22.25      $12.13                
PAPA JOHN'S INT'L, INC.                   12/31        PZZA             $33.00       $39.50      $22.63                
QUALITY DINING, INC.                      10/29        QDIN              $6.06       $30.50       $3.38                
RALLY'S HAMBURGERS, INC.                  12/31        RLLY              $2.88        $5.00       $1.88                
SBARRO, INC.                              12/31        SBA              $27.00       $29.75      $24.25                
SHOWBIZ PIZZA TIME, INC.                  12/29        SHBZ             $23.88       $27.38      $14.00                
TACO CABANA, INC.                         12/31        TACO              $5.50        $8.13       $3.75                
WENDY'S INTERNATIONAL                     12/31        WEN              $21.88       $27.94      $18.25                



                                    Common Stock Price                                                                 
                                 -------------------------                                                             
                                  As a % of  Premium to               Institutional Ownership                          
                                   52 WK       52 WK       Public     -----------------------     LTM          Dividend
Company                             High         Low        Float     Net Purch.   % Owned      Dividend         Yield 
-----------------------------------------------------------------------------------------------------------------------

                                                                                                                       
AU BON PAIN CO., INC.               97.2%       60.8%       6,600           99       54.5%         n/a           0.00% 
BLIMPIE INTERNATIONAL, INC.         34.4%        4.1%       3,900         (146)       4.4%       $0.03           0.66% 
BOSTON CHICKEN, INC.                34.0%       32.9%      32,100       (1,063)      71.3%         n/a           0.00% 
SCHLOTZSKY'S, INC.                  92.0%      102.7%       2,900          (48)      13.8%         n/a           0.00% 
BACK YARD BURGERS, INC.             77.0%       15.3%       3,100            0        1.1%         n/a           0.00% 
CHECKERS DRIVE-IN REST.             41.3%       73.6%      57,700         (204)       3.8%         n/a           0.00% 
CKE RESTAURANTS, INC.               99.4%      133.3%      32,600        2,017       55.5%       $0.08           0.19% 
CONSOLIDATED PRODUCTS               95.1%       29.0%       9,900          126       33.2%         n/a           0.00% 
DAVCO RESTAURANTS, INC.             98.6%      113.4%       2,300           82       67.4%         n/a           0.00% 
EINSTEIN/NOAH BAGEL CORP            34.8%       45.0%      12,300        2,676       20.9%         n/a           0.00% 
KOO KOO ROO, INC.                   60.3%       51.7%       5,300          262       13.5%         n/a           0.00% 
MCDONALD'S CORPORATION              85.1%        9.9%     681,100        5,813       52.2%       $0.33           0.71% 
MORGAN'S FOODS, INC.                51.6%       42.0%       1,600         (106)      40.8%         n/a           0.00% 
NATHAN'S FAMOUS                     93.2%       54.5%       1,800          328       14.8%         n/a           0.00% 
NPC INTERNATIONAL, INC.             98.5%       57.9%       8,900          416       25.1%         n/a           0.00% 
PJ AMERICA, INC.                    71.6%       31.4%       3,900          911       31.8%         n/a           0.00% 
PAPA JOHN'S INT'L, INC.             83.5%       45.8%       9,600        3,765       79.8%         n/a           0.00% 
QUALITY DINING, INC.                19.9%       79.3%       9,100          367       35.4%         n/a           0.00% 
RALLY'S HAMBURGERS, INC.            57.6%       53.2%       1,900          830       19.1%         n/a           0.00% 
SBARRO, INC.                        90.8%       11.3%      12,700        1,535       57.5%       $1.08           4.00% 
SHOWBIZ PIZZA TIME, INC.            87.2%       70.6%      15,000        1,727       69.0%         n/a           0.00% 
TACO CABANA, INC.                   67.7%       46.7%       9,300           38       66.7%         n/a           0.00% 
WENDY'S INTERNATIONAL               78.3%       19.9%     108,000           34       53.6%       $0.24           1.10% 

                                                 --------------------------------------------------------------------- 
                                                 MEDIAN:                                         $0.24           0.00% 
                                                 MEAN:                                           $0.35           0.29% 
                                                 MEAN (excluding high and low)                   $0.22           0.13% 
                                                 --------------------------------------------------------------------- 



                                       Level 1 ROA                                                                     
                                      -------------                                                                    
                             Total      Oper. Inc./   Working      Current        EBIT       EBITDA                    
Company                      Assets      TA - Cash    Capital      Ratio(6)      Margin      Margin                    
----------------------------------------------------------------------------------------------------                   
                             (MM)                                                                                      

                                                                                                                       
AU BON PAIN CO., INC.         $192.8         2.42%       $7.9         1.39         1.9%        8.7%                    
BLIMPIE INTERNATIONAL, IN      $23.8        22.88%       $8.2         0.00        12.4%       13.5%                    
BOSTON CHICKEN, INC.        $2,005.8         5.95%     $182.6         5.07        32.6%       41.4%                    
SCHLOTZSKY'S, INC.             $42.3         8.08%      $11.9         5.09        12.5%       20.5%                    
BACK YARD BURGERS, INC.        $11.3         2.87%       $0.3         1.26         1.2%        5.7%                    
CHECKERS DRIVE-IN REST.       $124.9       -15.54%     ($16.2)        0.51       -12.1%       -4.2%                    
CKE RESTAURANTS, INC.         $410.0        13.12%     ($17.4)        0.79         7.2%       11.6%                    
CONSOLIDATED PRODUCTS         $157.9        15.97%     ($20.5)        0.43         9.8%       14.8%                    
DAVCO RESTAURANTS, INC.       $118.3        13.94%     ($28.1)        0.16         7.4%       11.2%                    
EINSTEIN/NOAH BAGEL CORP      $482.8         0.99%      $71.0         5.97         7.4%       17.1%                    
KOO KOO ROO, INC.              $74.3       -20.89%       $9.4         4.64       -30.2%      -18.4%                    
MCDONALD'S CORPORATION     $17,562.0        15.39%  ($1,400.9)        0.44        24.0%       30.9%                    
MORGAN'S FOODS, INC.           $19.9         2.30%      ($1.6)        0.68         1.0%        5.5%                    
NATHAN'S FAMOUS                $28.0         4.68%       $5.0         1.92         4.9%       10.5%                    
NPC INTERNATIONAL, INC.       $378.7         9.48%     ($28.1)        0.39        10.9%       16.5%                    
PJ AMERICA, INC.               $23.5         8.65%      $14.6         7.72        10.1%       13.1%                    
PAPA JOHN'S INT'L, INC.       $226.6        13.35%      $14.2         1.61         7.4%       10.2%                    
QUALITY DINING, INC.          $262.0         4.66%     ($20.3)        0.57         4.2%       10.2%                    
RALLY'S HAMBURGERS, INC.      $111.3         7.22%      ($9.6)        0.53         5.4%       12.6%                    
SBARRO, INC.                  $251.0        35.72%      $74.4         3.69        17.0%       23.9%                    
SHOWBIZ PIZZA TIME, INC.      $227.6        23.31%       $2.3         1.06        15.7%       23.7%                    
TACO CABANA, INC.             $143.2         4.82%      ($5.7)        0.53         5.3%       12.8%                    
WENDY'S INTERNATIONAL       $1,867.4        17.81%     $184.0         1.93        14.4%       17.8%                    

---------------------------------------------------------------------------------------------------                    
MEDIAN:                       $157.9         8.08%       $2.3         1.06         7.4%       12.8%                    
MEAN:                       $1,075.9         8.57%     ($41.9)        2.02         7.4%       13.5%                    
MEAN (excluding                                                                                                        
high and low)                 $341.5         8.68%      $12.1         1.84         8.0%       13.6%                    
---------------------------------------------------------------------------------------------------                    

<FN>                                                                                                                   
All Financials taken from Strategic Investor data service except as noted                                              

NOTES:   (1)Closing prices as of 9/15/97                                                                               
         (2)Aggregate value equals market value of equity plus total debt and                                          
            preferred stock net of cash and marketable securities                                                      
         (3)Based on median I/B/E/S estimates as of 9/16/97                                                            
         (4)Financials taken from Bloomberg System                                                                     
         (5)Debt/Equity consists of Total Funded Debt to Total Balance Sheet                                           
            Equity                                                                                                     
         (6)Current Ratio consists of latest quarter Current Assets to latest                                          
            quarter Current Liabilities                                                                                

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WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP
COMPARABLE COMPANIES
--------------------------------------------------------------------------------

Au Bon Pain Company, Inc.                   Au Bon Pain Company, Inc. is a chain
                                         of 289 bakery cafes, 231 of which
                                           are company-owned and operated. The
                                          Company, which does business under
                                          the names "Au Bon Pain" and "Saint
                                           Louis Bread Company," positions its
                                       bakery cafes to serve customers
                                        where they work and shop. Au Bon
                                            Pain has bakery cafes throughout the
                                      United States and in Santiago,
              Chile.

Back Yard Burgers, Inc.                     Back Yard Burgers, Inc. operates and
                                            franchises quick-service restaurants
                                           in 15 states. The Company's menu is
                                          diverse, emphasizing made-to-order
                                    charbroiled burgers, chicken
                                         sandwiches, name-brand condiments
                                           and other items. Back Yard operates
                                      or franchises approximately 44
               stores.

Blimpie International, Inc.                 Blimpie International, Inc.         
                                            franchises, subfranchises and master
                                        licenses a chain of non-cooking,
                                           quick service sandwich outlets know
                                      as "Blimpie" outlets. The main
                                         products sold in a Blimpie outlet
                                          are sub sandwiches and salads. The
                                      Company has outlets across the
                                    United States and worldwide.

Boston Chicken, Inc.                        Boston Chicken, Inc. operates and   
                                           franchises food service stores. The
                                           stores specialize in complete meals
                                        which include rotisserie roasted
                                            chicken and fresh vegetables, salads
                                     and other side dishes. Boston
                                           Chicken operates 1,087 stores in 38
                                           states and the District of Columbia
                                       under the name "Boston Market."

Checkers Drive-In Restaurants, Inc.         Checkers Drive-In Restaurants, Inc.,
                                     based in Clearwater, Florida,
                                        operates and franchises Checkers
                                            "double drive-through" quick service
                                    hamburger restaurants. These
                           Restaurants provide
                                    automobile-oriented service,
                                           featuring hamburgers, french fries,
                                  hot dogs, chicken and fish
                                   sandwiches, soft drinks and
                                       milkshakes. The Restaurants are
                                     located throughout the United
               States.

CKE Restaurants, Inc.                       CKE Restaurants, Inc. is the parent 
                                            company of Carl Karcher Enterprises,
                                          Inc., Casa Bonita Incorporated and
                                          Summit Family Restaurants Inc. The
                                         Company operates "Rally's" quick-
                                         service restaurants, "Taco Bueno"
                                        quick-service restaurants, "JB's
                                       Restaurants," "HomeTown Buffet"
                                      restaurants and "Galaxy Diner"
                    restaurants.

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WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP
COMPARABLE COMPANIES
--------------------------------------------------------------------------------

Consolidated Products, Inc.                 Consolidated Products, Inc. operates
                                        208 company-owned and franchised
                                           restaurants throughout Southern and
                                          Midwestern states. The restaurants
                                          operate under the name of "Steak n
                                         Shake," which offer steakburgers,
                                    french fries, milkshakes and
                                            breakfast. The Company also operates
                                           casual, sports, Mexican and western
                                           restaurants as well as coffee shops
                             throughout the South.

Davco Restaurants, Inc.                     Davco Restaurants, Inc. operates    
                                   approximately 228 fast food
                                        restaurants under the trade name
                                           "Wendy's Old Fashioned Hamburgers".
                                   The Company maintains these
                                           franchises primarily throughout the
                            Mid-Atlantic states.

Einstein/Noah Bagel Corp.                   Einstein/Noah Bagel Corp. operates  
                                       and franchises specialty retail
                                       stores that feature fresh-baked
                                        bagels, cream cheeses, specialty
                                            coffee drinks, soups, sandwiches and
                                        salads. The Company operates its
                                         stores in the United States under
                                         the names "Einstein Bros. Bagels"
                                     and "Noah's New York Bagels."

Koo Koo Roo, Inc.                           Koo Koo Roo, Inc. operates and      
                                        franchises fast-food restaurants
                                        featuring flame broiled skinless
                                        chicken under the names "Koo Koo
                                     Roo" and "Color Me Mine." The
                                    company owns and operates 28
                                          restaurants, 24 in California, two
                                           in Florida, one in Colorado and one
                    in New York.

McDonald's  Corporation                     McDonald's Corporation develops,    
                                         operates, franchises and services
                                          a worldwide system of restaurants.
                                  These restaurants prepare,
                                    assemble, package and sell a
                                         limited menu of quickly-prepared,
                                          moderately-priced foods. There are
                                      over 21,000 restaurants in the
                                       United States and 102 countries
                                     worldwide. Food items include
                                    hamburgers, chicken, salads,
                                      breakfast foods and beverages.

Morgan's Foods, Inc.                        Morgan's Foods, Inc. operates 40    
                                            "Kentucky Fried Chicken" restaurants
                                        in five states. The Company also
                                        operates six "East Side Mario's"
                                          restaurants in Cleveland/Akron and
                       Columbus, Ohio.

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WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP
COMPARABLE COMPANIES
--------------------------------------------------------------------------------

Nathan's Famous Inc.                        Nathan's Famous Inc. operates and   
                                    franchises fast food outlets
                                         featuring its famous all beef hot
                                          dogs, fresh french fries and other
                                        items. The Company's outlets are
                                          placed in airports, travel plazas,
                                         stadiums, military facilities and
                                           schools. Nathan's also licenses the
                                      "Nathan's Famous" trademark to
                                          Morrell for the manufacture of its
                                          hot dogs for sale to supermarkets.

NPC International, Inc.                     NPC International, Inc. is a "Pizza 
                                          Hut" franchisee operating over 600
                                            restaurants and delivery kitchens in
                                          20 states. Through its subsidiary,
                                      Romacorp, Inc., the Company is
                                 owner/franchiser of "Tony
                                         Roma's-Famous for Ribs." Romacorp
                                            operates 40 "Tony Roma's" units and,
                                          through its affiliates, franchises
                                another 140 including 49
                                 international facilities.

Papa John's International, Inc.             Papa John's International, Inc.     
                                         operates franchise pizza delivery
                                           and carry-out restaurants under the
                                            "Papa John's" trademark. The Company
                                       operates 1,160 restaurants, 303
                                        company-owned and 857 franchised
                                           restaurants, operating in 32 states
                                     and the District of Columbia.

PJ America Inc.                             PJ America Inc. is a franchise of   
                                          Papa John's pizza restaurants. The
                                          Company currently operates 46 Papa
                                      John's restaurants in Alabama,
                                      Virginia and Texas and has the
                                        rights to develop restaurants in
                                           Vancouver, Canada and certain parts
                                          of California and the commonwealth
                       of Puerto Rico.

Quality Dining, Inc.                        Quality Dining, Inc. owns and       
                                         operates quick-service and casual
                                            dining restaurants. The Company owns
                                     the Bruegger's Bagel Bakery,"
                                 "Grady's American Grill,"
                                        "Spageddies Italian Kitchen" and
                                     "Papa Vino's Italian Kitchen"
                                           concepts. The Company also operates
                                     "Burger King" restaurants and
                                            "Chili's Grill & Bar" restaurants as
                     a franchisee.

Rally's Hamburgers, Inc.                    Rally's Hamburgers, Inc. operates   
                                           and franchises double drive-through
                                            quick-service hamburger restaurants.
                                         These restaurants offer a limited
                                      menu of food service hamburger
                                            restaurants. These restaurants offer
                                       a limited menu of food items at
                                          prices comparably lower than their
                                            competitors. There are approximately
                                        474 company-owned and franchised
                                         restaurants located in 19 states.

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EX-99.2
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WENDY'S OF WEST MICHIGAN LIMITED PARTNERSHIP
COMPARABLE COMPANIES
--------------------------------------------------------------------------------

Sbarro, Inc.                                Sbarro, Inc. develops and operates a
                              chain of family-style,
                                          cafeteria-type Italian restaurants
                                          under the "Sbarro" and "Sbarro The
                                          Italian Eatery" names. The Company
                                         currently owns 820 and franchises
                                            214 restaurants in the United States
                   and abroad.

Schlotzsky's, Inc.                          Schlotzsky's, Inc. franchises quick 
                                      service restaurants that offer
                                          made-to-order sandwiches served on
                                            distinctive sourdough bread, pizzas,
                                     salads and soups. The Company
                                   currently operates over 600
                                  "Schlotzsky's" restaurants
                  worldwide.

Showbiz Pizza Time, Inc.                    Showbiz Pizza Time, Inc. operates a 
                                         system of 314 "Chuck E. Cheese's"
                                          restaurants in 44 states, of which
                                     244 are Company operated. The
                                          Company's restaurants offer pizza,
                                           sandwiches and other menu items and
                                          feature entertainment by life-size
                                   computer controlled robotic
                                           characters, rides and arcade games.

Taco Cabana                                 Taco Cabana operates a chain of 121 
                                          Mexican food restaurants which are
                                    operated directly or through
                                 franchises. The Company's
                                            restaurants are currently located in
                     eight states.

Wendy's International, Inc.                 Wendy's International, Inc.         
                                           operates, develops and franchises a
                                            system of fast food restaurants. The
                                            Restaurants offer hamburgers, salads
                                           and chicken sandwiches. The Company
                                         operates or franchises over 4,933
                                   "Wendy's" and "Tim Hortons"
                                            restaurants in the United States and
                                     33 countries and territories.

E-7 

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘S-4/A’ Filing		Date		First		Last			Other Filings
		11/30/97		7					10-K,  8-K,  8-K/A,  DEF 14A
Filed on:		10/15/97
		8/31/97		4					10-Q
									List all Filings