About Arby's Franchisor Franchise
Arby's is a quick-service restaurant franchise featuring deli-inspired sandwiches and complementary side items and desserts.
Franchisees operate restaurants under the Arby's brand, serving a variety of high-quality proteins including roast beef sandwiches, curly fries, jamocha shakes, and other crave-able menu items.
The restaurants serve a wide range of age groups throughout the general public in locations including free-standing buildings, end cap and inline locations, drive-thru only locations, gas stations, convenience stores, travel plazas, malls, and more.
Arby's Franchisor Franchise Cost & Fees
Minimum Investment
$645K
Average Investment
$1.5M
Maximum Investment
$2.5M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $37,500 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Minimum aggregate 5.2% of Gross Sales (comprised of Advertising and Marketing Service Fee ranging from 3.22% to 5.00%, Local Market Advertising, and Local Cooperative Area Advertising) | National brand fund |
| Total Investment Range | $644,950 – $2,451,000 | Includes build-out, inventory, working capital |
The investment range of $645K–$2.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (Minimum aggregate 5.2% of Gross Sales (comprised of Advertising and Marketing Service Fee ranging from 3.22% to 5.00%, Local Market Advertising, and Local Cooperative Area Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Development Fee | $6,250 | $12,500 |
| Franchise Fee | $0 | $37,500 |
| Fees and Expenses During Training | $5,000 | $23,400 |
| Lease Deposits and Payments | $12,000 | $50,000 |
| Site Costs | $0 | $451,000 |
| Landscaping | $0 | $45,000 |
| Civil & Architectural Drawings / Professional Fees | $6,000 | $150,000 |
| Zoning / Permitting Costs | $1,000 | $112,000 |
| Building Costs | $236,000 | $850,000 |
| Equipment | $225,000 | $325,000 |
| Computer Hardware and Software / POS | $32,000 | $55,000 |
| Décor Package | $11,000 | $35,000 |
| Signage & Drive Thru | $25,000 | $88,000 |
| Pre-Opening Wages | $21,300 | $41,200 |
| Opening Inventory | $18,000 | $26,000 |
| Insurance | $8,400 | $14,400 |
| Working Capital / Additional Funds | $33,000 | $100,000 |
| Rent (one month) | $4,000 | $10,000 |
| Business Licenses, Health Permits, Utilities Deposits | $1,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $17,500 for first Arby's Restaurant transfer; $2,500 if transferee already a party to at least one existing Franchise Agreement |
| Renewal Fee | 10% of then applicable standard initial franchise fee for Traditional Restaurants; then applicable Non-Traditional Franchise Fee for Non-Traditional Restaurants |
| Technology Fee | Arby's Order Ahead Platform (optional): $50/month per restaurant + 4% of Gross Sales per order ahead transaction (35¢ min, $1.25 max) + 3% on third-party delivery orders |
| Audit Fee | Arby's audit expenses plus interest, payable if audit discloses deficiency in reported Gross Sales of more than 3% |
| MTP Learning Path Program Fee | $2,100 per attendee (waived for first 3 managers at first restaurant and 1 at second) |
| Learning Management System Fee | $59.22 plus tax per year per restaurant |
| Additional Training | $0 to $2,100 |
| Testing of Samples | Cost of samples |
| Approval of Suppliers | $2,500 to $10,000 |
| Interest on Overdue Payments | Up to 18% per annum |
| Insurance | Varies by carrier and location |
| Indemnity | Varies under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 7 weeks (336 total hours) |
| Classroom Training | 0 hours |
| On-the-Job Training | 336 hours |
| Training Location | Nationally Certified Training Restaurants (NCTRs) located across the country |
| Additional Training | New Franchisee Orientation (NFO) is a 1-2 day program at Arby's Support Center in Atlanta. Revitalization Roadmap provides 2 people for 10 days for first restaurant opening and 1 person for 6 days for second restaurant opening. Ongoing training available through Cornerstone Learning Management System. Supplemental or refresher training may be required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically 1-mile radius from location for free-standing restaurants; site-specific only for Non-Traditional Restaurants; no Protected Area may be granted |
| Description | During the Development Agreement term, Arby's will not open or franchise new Arby's Restaurants in the Territory. Under the Franchise Agreement, Arby's will not operate or franchise others to operate an Arby's Restaurant using licensed Trademarks and offering deli-inspired sandwiches within the Protected Area. However, the Protected Area excludes malls, college campuses, hospitals, military bases, airports, stadiums, theme parks, casinos, and sovereign nations. Arby's and affiliates reserve all other rights to operate restaurants under any name at any location outside the Protected Area. Non-Traditional Restaurants receive no Protected Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Up to 20 years for Traditional Restaurants (may be less if lease is shorter); up to 10 years for Non-Traditional Restaurants (or term of lease, whichever is shorter) |
| Renewal Term | Up to 20 years for Traditional Restaurants; up to 10 years for Non-Traditional Restaurants |
| Renewal Fee | 10% of then applicable standard initial franchise fee for Traditional Restaurants; then applicable Non-Traditional Franchise Fee for Non-Traditional Restaurants, payable 180 days before expiration |
| Renewal Conditions | Must not be in default within 12 months prior to expiration; must remodel to then-current image; must apply 6-9 months before expiration; must execute successor Franchise Agreement and General Release 30 days before expiration; must comply with then-current training requirements |
| Transfer Fee | $17,500 for first restaurant; $2,500 if transferee already party to existing Franchise Agreement |
| Transfer Conditions | Transferee must be of good character with good credit and business experience; must execute assignment agreement or new Franchise Agreement; all debts to Arby's, AFA, cooperatives must be paid; transferee must complete training; must correct premises deficiencies within 90 days; General Release required; Arby's has right of first refusal (except for pre-qualified buyers) |
| Termination for Cause | Automatic termination without notice for insolvency, bankruptcy, assignment for benefit of creditors, receiver appointed, unauthorized transfer. Immediate termination upon notice for loss of premises, criminal violations, false information, duplication of system, non-compete violations, denying inspection rights, 2+ monetary defaults in 12 months, imminent health/safety danger, abandonment. 30-day cure for non-compliance with Manual or operations standards. 10-day cure for delinquent payments. 180-day cure for casualty. |
| Non-Compete Period | 12 months after termination |
| Non-Compete Details | Franchisee, guarantors, general partners, and shareholders/members/equity owners holding 15% or greater interest may not own, operate, manage, or have 15% or greater interest in any business offering roast beef sandwiches for sale within the Protected Area during the franchise term and for 12 months after termination. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee (or its owners if a business entity) has no obligation to participate personally in the direct operation of the Restaurant, although it is recommended. However, for each of the first and second Restaurants, franchisee must employ 3 managers (6 total) who have completed and are certified in the MTP. For third and subsequent Restaurants, franchisee must employ 1 certified manager per Restaurant. |
| Required Suppliers | Franchisees must purchase furniture, fixtures and equipment, food and beverage ingredients, cups and paper goods, uniforms, professional cleaning services, hygiene and food safety program materials, restaurant auditing services, third party delivery services, and credit/debit card processing only from approved suppliers and through approved distributors. ARCOP, Inc. is a non-profit supply chain cooperative that sources and negotiates pricing for the Arby's system. |
| Supply Restrictions | Approximately 90% of purchases and leases must be from Arby's or approved suppliers/distributors. Franchisees must obtain written approval before purchasing from unapproved suppliers. Approval process typically takes approximately 90 days. |
| Franchisor Revenue from Suppliers | ARG reported $13,854,482 in rental revenue (net $5,505,394) from 95 franchised properties. IRB reported $4,852,090 in revenue from Arby's Order Ahead Platform technology services to franchisees. Beverage suppliers (Coca-Cola, Dr. Pepper) provide funding for marketing initiatives, the Arby's Foundation, and the annual franchise convention. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Arby's does not offer direct or indirect financing. Arby's does not guarantee any note, lease, or obligation. |
Arby's Franchisor Franchise Earnings — Item 19
Average Revenue
$1.3M
Median Revenue
$1.2M
Revenue Range
$369K – $4.0M
Sample Size
2219 units
Past financial performance does not guarantee future results. Individual results will vary.
Arby's Franchisor Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Arby's Franchisor System Growth
Total Units
3365
Franchised
2286
Company-Owned
1079
Arby's Franchisor currently operates 2286 franchised locations and 1079 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 70 | 60 | 3415 |
| 2023 | 60 | 62 | 3413 |
| 2024 | 35 | 83 | 3365 |
Transfers: 54 | Closures: 83
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$191.7M
Net Income
$156.5M
Total Assets
$271.9M
Audited by KPMG LLP for year ending December 29, 2024.
Arby's Franchisor Franchise — FAQ
The total investment to open a Arby's Franchisor franchise ranges from $644,950 to $2,451,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $37,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Arby's Franchisor charges a royalty fee of 4% of Gross Sales of gross sales, plus a Minimum aggregate 5.2% of Gross Sales (comprised of Advertising and Marketing Service Fee ranging from 3.22% to 5.00%, Local Market Advertising, and Local Cooperative Area Advertising) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Arby's Franchisor Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Arby's Franchisor to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Arby's Franchisor franchise owners report average revenue of $1.3M and median revenue of $1.2M. This is based on a sample of 2219 units. Past performance does not guarantee future results.
Arby's Franchisor has been franchising since 2015. The FDD shows an investment range of $644,950-$2,451,000, a 4% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $37,500 and the total investment ranges from $644,950 to $2,451,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in Arby's Franchisor?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Arby's Franchisor and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Arby's Franchisor or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com