Triarc Cos. is in talks to merge its Arby's chain with its largest franchisee, RTM Restaurant Group, which would be followed by an initial public offering of stock for the combined unit.
New York-based Triarc franchises the chain and operates about 235 Arby's restaurants in the United States.
RTM operates and franchises more than 700 restaurants.
Triarc said it planned to be the majority owner of the combined entity. Some of the IPO proceeds would be used to pay the owners of RTM.