How Much Does a Arby's Franchise Cost?
Total investment: $400,000 to $2.1M. Here is the complete breakdown of fees, requirements, and what to expect as a Arby's franchisee.
Arby's Franchise at a Glance
Arby's Franchise Overview
Arby's is the largest QSR chain focused on roast beef and protein-forward sandwiches. The brand has been revitalized under Inspire Brands ownership with its 'We Have The Meats' positioning and expanded menu including brisket, turkey, and fish offerings. Arby's operates a higher percentage of company-owned stores (35%) than most QSR chains, which franchise opportunities somewhat limited to select markets.
Arby's Investment Breakdown
Detailed cost breakdown based on current Franchise Disclosure Document (FDD) estimates.
| Cost Category | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $37,500 | $37,500 |
| Real Estate & Construction | $150,000 | $1.4M |
| Equipment & Signage | $100,000 | $350,000 |
| Opening Inventory | $8,000 | $15,000 |
| Training & Pre-Opening | $25,000 | $50,000 |
| Working Capital | $79,500 | $247,500 |
| Total Estimated Investment | $400,000 | $2.1M |
Estimates based on publicly available FDD data. Actual costs vary by location, real estate market, and construction costs. Always review the current FDD Item 7 for exact figures.
Ongoing Fees and Royalties
What you will pay Arby's on a recurring basis after opening.
| Fee | Amount |
|---|---|
| Royalty Fee | 4% of gross sales |
| Advertising Fund | 4.2% of gross sales |
| Local Advertising | Varies |
| Technology Fee | Varies |
Estimated Annual Fee Impact
Based on the estimated average unit revenue of $1.2M:
Pros and Cons of a Arby's Franchise
Advantages
- +Unique protein-forward positioning with minimal direct competition
- +Competitive 4% royalty rate (among the lowest in QSR)
- +Inspire Brands infrastructure and cross-brand synergies
- +'We Have The Meats' campaign drove significant brand revitalization
- +Diverse menu appeals to a broad demographic
Considerations
- -Higher corporate ownership (35%) limits franchise territory availability
- -Average unit volumes ($1.2M) are moderate relative to investment
- -Wide investment range ($400K-$2.1M) creates budgeting uncertainty
- -Roast beef and protein costs can be volatile
- -Lower brand buzz compared to trendier concepts
Who Is the Ideal Arby's Franchisee?
Arby's works for experienced multi-unit operators seeking a differentiated QSR concept. The brand favors operators who can commit to multi-unit development in specified territories. Minimum $500K liquid, $1M net worth.
Minimum Requirements Summary
Frequently Asked Questions
How much does it cost to open a Arby's franchise?
The total investment to open a Arby's franchise ranges from $400,000 to $2.1M, including the $37,500 franchise fee, construction, equipment, inventory, training, and working capital. Exact costs depend on location, format, and local market conditions.
What is the Arby's royalty fee?
Arby's charges a 4% royalty on gross sales plus a 4.2% advertising fee, for a combined ongoing fee of 8.2% of gross sales.
How much does a Arby's franchise make per year?
The estimated average unit revenue for a Arby's location is approximately $1.2M per year. Actual performance varies by location, management, and market conditions. Revenue does not equal profit - operators must account for food costs, labor, rent, royalties, and other operating expenses.
How long is the Arby's franchise agreement?
The standard Arby's franchise agreement is 20 years. Renewal terms: Current franchise fee.
How many Arby's locations are there?
Arby's operates approximately 3,400 locations worldwide, including 3,300 in the United States. Approximately 65% of locations are franchised.
Compare Arby's with Other Franchises
See how Arby's stacks up against similar QSR franchise opportunities.
| Brand | Franchise Fee | Total Investment | Royalty + Ad Fees | Est. Revenue |
|---|---|---|---|---|
| Arby's | $37,500 | $400,000 - $2.1M | 8.2% | $1.2M |
| Jimmy John's | $35,000 | $330,000 - $558,000 | 10.5% | $1M |
| Jersey Mike's | $18,500 | $200,000 - $780,000 | 9.5% | $1.3M |
| Subway | $15,000 | $116,000 - $263,000 | 12.5% | $480,000 |
| Wingstop | $20,000 | $400,000 - $800,000 | 11% | $1.8M |
| Popeyes | $50,000 | $383,000 - $2.6M | 9% | $1.7M |
Free Tools for Prospective Franchisees
Franchise ROI Calculator
Estimate your return on investment for any franchise concept
Break-Even Calculator
Find out how long it takes to break even on your franchise investment
Profit Margin Calculator
Model your restaurant P&L and estimate profit margins
Labor Cost Calculator
Estimate staffing costs and labor percentage for your location
Get Franchise Cost Updates
FDD analysis, cost breakdowns, and franchise financial insights delivered weekly.
QSR Intelligence Briefing
Daily insights on the QSR industry. No spam, just intelligence.