Arby's vs Moe's Southwest GrillFranchise Comparison 2026
Arby's and Moe's Southwest Grill 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 | Moe's Southwest Grill | Difference |
|---|---|---|---|
| Franchise Fee | $37,500 | $30,000 | +25% |
| Total Investment (Low) | $500,000 | $350,000 | +43% |
| Total Investment (High) | $2.4M | $710,000 | +238% |
| Cash Required | $500,000 | $250,000 | +100% |
| Royalty Rate | 4.0% | 5.0% | Lower |
| Advertising Fee | 4.0% | 3.0% | Higher |
| Estimated Revenue | $1.1M | $920,000 | +20% |
| Number of Locations | 3,400 | 720 | More |
| Year Founded | 1964 | 2000 | Older |
| Training Duration | 6 weeks | 4 weeks | Longer |
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 Moe's Southwest Grill
Fresh Tex-Mex with free chips and salsa. Part of Focus Brands. Strong unit economics and operational simplicity.
Investment Comparison
Moe's Southwest Grill requires a lower initial investment (avg $530,000) compared to Arby's(avg $1.4M), making it more accessible for first-time franchisees. However, Arby's may offer higher revenue potential.
Fee Structure
Both brands have similar ongoing fee structures (8.0% total), so the difference in profitability will primarily come from top-line revenue, operating efficiency, and local market conditions.
Market Position
Arby's has a significantly larger footprint with 3,400 locations compared to Moe's Southwest Grill's 720. 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 Moe's Southwest Grill franchise?
Arby's requires an initial investment of $500,000 to $2.4M, while Moe's Southwest Grill requires $350,000 to $710,000. Moe's Southwest Grill has the lower average investment at $530,000.
What are the ongoing fees for Arby's vs Moe's Southwest Grill?
Arby's charges a 4.0% royalty plus 4.0% advertising fee (8.0% total). Moe's Southwest Grill charges 5.0% royalty plus 3.0% advertising fee (8.0% total). Moe's Southwest Grill has lower total ongoing fees.
Which franchise makes more money: Arby's or Moe's Southwest Grill?
Based on estimated average unit revenue, Arby's generates $1.1M per location compared to $920,000 for Moe's Southwest Grill. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Arby's have vs Moe's Southwest Grill?
Arby's has 3,400 locations, while Moe's Southwest Grill has 720 locations. Arby's has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Arby's or Moe's Southwest Grill a better franchise investment in 2026?
Both Arby's and Moe's Southwest Grill are established QSR brands with proven models. Moe's Southwest Grill offers a lower entry point, while Arby's 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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