Arby's Franchise Cost: Investment, Revenue & SBA Data

Across 198 SBA 7(a) loans, Arby's shows 33 defaults — a clean repayment record that stands out in a category where the QSR average default rate is 13.5%. The total investment runs $868,550 to $2,456,600. Average revenue is $1,274,787. The question is whether that modest revenue can support a buildout that often exceeds $1.5M.

The cost to open an Arby's

The $37,500 franchise fee sits between the $15,000 that Sonic charges and the $50,000 at Wendy's and Burger King. The total investment range is broad because Arby's operates freestanding drive-through restaurants, inline strip-mall locations, and non-traditional formats (airports, travel plazas, college campuses). A standard freestanding build runs $1.2M to $2M.

SBA loan performance: 198 loans, 33 defaults

SBA loans carry personal guarantees. If a franchisee defaults, they lose the business and face personal liability. Across 198 Arby's SBA 7(a) loans, 33 borrowers defaulted. For context, the national franchise average charge-off rate is 16.0% and the QSR category average is 13.5%.

The typical Arby's operator is an experienced multi-unit restaurant professional, not a first-time buyer. The zero-default SBA record is encouraging, but with only 198 loans on file the sample is small enough that the real risk picture depends on unit economics — and those are tighter than the revenue headline suggests.

For comparison, here is how Arby's stacks up against its sister brands under Inspire Brands and competitors:

$1.27M revenue is the weak link

Average gross sales of $1,274,787 put Arby's at the lower end of QSR revenue. It trails Sonic ($1.55M), Wendy's ($2.1M), and McDonald's ($4.0M). On a $1.5M buildout, a 0.85:1 investment-to-revenue ratio in year one is tight.

The FDD does not disclose net income, so we cannot verify what Arby's owners actually take home. But back-of-envelope math on $1.27M revenue with 4-6.2% royalty ($51K-$79K), 5.2% ad fund ($66K), 30% food cost ($382K), 28% labor ($356K), and 10% rent ($127K) leaves roughly $160K to $190K before other overhead. Owner earnings likely range from $70K to $130K per year.

That is modest. Although Arby's SBA record shows 33 defaults across 198 loans, the tight margins mean operators with high buildout costs may struggle to service debt on this revenue base.

Slow growth: a net +2.5%

Arby's operates 3,265 total units and posted a net unit change of about +2.5% in the most recent FDD year (136 openings against 78 closures). That is better than contraction (which Sonic, KFC, and Subway are experiencing), but it is well below the 9-12% growth rates of Jersey Mike's and Wingstop.

Litigation: product misrepresentation and data breaches

The FDD discloses class action lawsuits regarding product misrepresentation (meat quantity and wagyu content claims) and data security breaches. The no-poaching settlements common to Inspire Brands also appear. These lawsuits affect brand perception and could deter customers, though Arby's has managed to maintain stable revenue through them.

20-year term with radius-based territory

The 20-year initial term is standard for large QSR brands. The radius-based territory gives you a defined market area, which is better than the location-only protection at Burger King and Wendy's. For a drive-through concept, the radius matters because your competition is every other restaurant within driving distance, including other Arby's locations.

The verdict on Arby's

Arby's has steady performance but no spectacular returns. The SBA record — 33 defaults across 198 loans — is clean, but the $1.27M average revenue is the biggest limitation. For comparison, Wendy's generates $2.1M on a similar investment and posts a 0.8% default rate. If you want higher revenue per unit in the QSR space, other brands in the Inspire portfolio may offer better returns relative to buildout cost.

See the full breakdown on the Arby's profile page, or compare it to other QSR brands using real FDD and SBA data.

The bottom line

Arby's SBA record shows 33 defaults across 198 loans, which is a clean repayment history. But the $1.27M average revenue is modest for a QSR investment that can exceed $2M, and that revenue gap — not loan defaults — is the real risk factor. Most buyers overlook Arby's because roast beef sandwiches are not as exciting as chicken or burgers, and the tight unit economics give that hesitation some grounding. That said, Arby's competes in a niche with almost no direct competitors, and being part of Inspire Brands gives it access to shared supply chain and technology investments from a portfolio that includes Dunkin', Sonic, and Buffalo Wild Wings. The question is whether the niche positioning and corporate backing are enough to offset the modest revenue.

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