Arby's vs Carl's Jr.Franchise Comparison 2026
Arby's and Carl's Jr. represent two different approaches in the QSR space. Here's how they compare on investment costs, fees, revenue potential, and market presence.
Quick Comparison
Side-by-Side Comparison
| Metric | Arby's | Carl's Jr. | Difference |
|---|---|---|---|
| Franchise Fee | $37,500 | $25,000 | +50% |
| Total Investment (Low) | $500,000 | $1.5M | -66% |
| Total Investment (High) | $2.4M | $3.2M | -24% |
| Cash Required | $500,000 | $380,000 | +32% |
| Royalty Rate | 4.0% | 4.0% | Same |
| Advertising Fee | 4.0% | 6.0% | Lower |
| Estimated Revenue | $1.1M | $1.3M | -16% |
| Number of Locations | 3,400 | 1,350 | More |
| Year Founded | 1964 | 1941 | Newer |
| Training Duration | 6 weeks | 10 weeks | Shorter |
Note: Data sourced from public FDD filings and industry reports. Actual costs vary by location, real estate, and format. Always review current FDD Item 7 and Item 19 disclosures before making investment decisions.
Detailed Analysis
About Arby's
Roast beef and specialty sandwiches with 'We Have the Meats' positioning. Part of Inspire Brands portfolio.
About Carl's Jr.
West Coast premium burger chain known for charbroiled burgers and bold marketing. Part of CKE Restaurants alongside Hardee's.
Investment Comparison
Arby's requires a lower initial investment (avg $1.4M) compared to Carl's Jr.(avg $2.3M), making it more accessible for first-time franchisees. However, Carl's Jr. may offer higher revenue potential.
Fee Structure
Arby's has lower ongoing fees (8.0% total) compared to Carl's Jr.(10.0% total), which means more of each sales dollar stays with the franchisee. Over time, this can significantly impact profitability.
Market Position
Arby's has a significantly larger footprint with 3,400 locations compared to Carl's Jr.'s 1,350. This larger network typically means better brand recognition, more purchasing power, and stronger operational support.
Frequently Asked Questions
How much does it cost to open a Arby's vs Carl's Jr. franchise?
Arby's requires an initial investment of $500,000 to $2.4M, while Carl's Jr. requires $1.5M to $3.2M. Arby's has the lower average investment at $1.4M.
What are the ongoing fees for Arby's vs Carl's Jr.?
Arby's charges a 4.0% royalty plus 4.0% advertising fee (8.0% total). Carl's Jr. charges 4.0% royalty plus 6.0% advertising fee (10.0% total). Arby's has lower total ongoing fees.
Which franchise makes more money: Arby's or Carl's Jr.?
Based on estimated average unit revenue, Carl's Jr. generates $1.3M per location compared to $1.1M for Arby's. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Arby's have vs Carl's Jr.?
Arby's has 3,400 locations, while Carl's Jr. has 1,350 locations. Arby's has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Arby's or Carl's Jr. a better franchise investment in 2026?
Both Arby's and Carl's Jr. are established QSR brands with proven models. Arby's offers a lower entry point, while Carl's Jr. shows higher average revenue. The best choice depends on your available capital, local market conditions, and personal goals. Always review the current FDD before making investment decisions.
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