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ARBY'S

ARBY'S

Arby’s is a quick-service restaurant franchise where franchisees operate restaurants offering deli-inspired sandwiches, such as roast beef varieties, along with complementary side items, desserts, and beverages. The business model requires franchisees to adhere to standardized site selection, construction, training, operations, and marketing protocols managed by Arby’s Franchisor, LLC, with ongoing royalties and advertising fees supporting system-wide support and national advertising through AFA. The target market includes consumers looking for fast, affordable, meat-focused meals in free-standing or non-traditional locations.

2,316locations
$645K–$2451K
Food & BeverageAtlanta, GAwww.arbys.comDisclaimer

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Franchise Costs

Franchise Fee
$37,500
Initial Investment
$644,950 – $2,451,000
Royalty Rate
4.00%
Brand Fund
4.00%
Fixed Monthly Fees
$5 – $30

4% royalty + 2.22%-4% Advertising and Marketing Service Fee + $25/mo Order Ahead Platform fee (optional) + $59/yr Learning Management System fee

Financial Performance


Item 19 Financial Performance

Extracted Item 19 Section

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ARBY'S Franchise Analysis

Arby's has long tempted fast-food fans with its carve-out from burger dominance, pushing premium roast beef and 'We Have the Meats' swagger. The 2024 FDD's Item 19 finally pulls back the curtain on unit financials, while a robust SBA loan track record hints at accessible funding paths. Yet amid low churn signals, does this chain offer the predictable returns to justify a multimillion-dollar leap?

Item 7 lays out the steep entry: a flat $37,500 franchise fee atop total investments from $644,950 for modest setups to $2,451,000 for prime free-standing sites, covering buildout, equipment, and initial inventory. Ongoing bites include 4% royalty on sales, a 2.22%-4% advertising and marketing service fee, plus optional $25/month for order-ahead tech and $59/year for training systems. Item 19's disclosure arms buyers with real gross sales data from existing units, crucial for modeling cash flow in a meat-heavy quick-service niche targeting lunch crowds and value seekers.

Health metrics scream stability across 2,316 franchise and 1,097 corporate spots: just 43 terminations and 14 non-renewals last year signal franchisee satisfaction, dwarfed by 87 transfers showing liquid resale options. Projected 22 new units reflect measured expansion, not reckless growth. SBA stats seal the deal—73 loans averaging $690,681 with a mere 4.1% default rate prove lenders back Arby's model, making financing smoother than many peers and underscoring why this veteran chain remains a calculated play for operators eyeing enduring fast-food cash flow.

Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How ARBY'S Compares

Key Insights

  • Top 10 largest franchise system in Fast Food
  • Lower than average SBA loan default rate in Fast Food
FranchiseInvestmentFeeRoyaltyLocations
ARBY'S
Current
$645K – $2.5M$38K4.0%2,316
MCDONALD'S$1.5M – $2.6M$45KN/A12,772
LITTLE CAESARS$377K – $1.8M$20K6.0%3,788
AFC$45K – $151K$6K9.5%3,572
KFC (NON-TRADITIONAL)$1.2M – $4.2M$45KN/A3,404
SONIC DRIVE-IN$1.5M – $2.5M$15K5.0%3,120
Fast Food Average
132 franchises
$602K – $1.6M$35K6.1%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 Fast Food franchises by location count.

SBA Loan History


Historical SBA 7(a) loan data for ARBY'S franchisees (20102025)

Total Loans
73
Average Loan
$690,681
Total Volume
$50.4M
Default Rate
4.1%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

73 SBA loans on record

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Franchisee Contacts

2,313 franchisee contacts on file from official FDD filings.

2,313 Contacts Available

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Due Diligence


Litigation (Item 3)

Franchisee CasesN/A

Bankruptcy (Item 4)

Bankruptcy HistoryN/A

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
43
Non-Renewals
14
Reacquired
0
Ceased Ops
28
Transfers
87
Sold to Franchisees
5
Projected New
22

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Frequently Asked Questions

The total initial investment to open a ARBY'S franchise ranges from $644,950 to $2,451,000. This includes a franchise fee of $37,500. Ongoing royalty fees are 4.0% of gross sales.