Arby’s Franchise Cost, Revenue & Review 2026
- Investment
- $869K – $2.5M
- Disclosed sales
- $1.3M
- gross sales, not profit
- SBA charge-off
- 18.2%
- on 198 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Arby's is a quick-service chain known for roast beef and deli-style sandwiches. Franchisees operate restaurants handling food prep, drive-thru service, staffing, and local marketing under the brand's standards.
FranchiseVerdict summary · 2026
A Arby’s franchise requires a total initial investment of $869K – $2.5M, including a $19K – $38K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.3M[2]. SBA 7(a) loans show a 18.2% charge-off rate across 198 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $869K – $2.5M
- 90th pct Service Resta…
- Avg gross sales
- $1.3M
- 25th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 3,265
- 95th pct Service Resta…
- SBA charge-off
- 18.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $869K – $2.5M including a $38K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.3M/year (median $1.2M).
- RISKVerdict B (Above average), verdict score 69/100 (higher is better). SBA loan charge-off rate of 18.2% across 198 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +58 franchised outlets in the latest year (136 opened, 78 closed) (Item 20).
- SCALEEstablished system with 3,265 units across 11 years of franchising. Strong brand recognition and operational playbook.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Arby's Franchisor, LLC
- Parent company
- Arby's Restaurant Group, Inc. (ARG)
- FDD Item 1, page 11 of the 2026 FDD
- Ultimate parent
- Inspire Brands, Inc.
- FDD Item 1, page 11 of the 2026 FDD
- Predecessor
- Arby's Restaurant Group, Inc.
- Prior franchisor entity
- CEO title
- President and Board Member
- David Graves
- Incorporated in
- DE
- HQ
- Three Glenlake Parkway NE, Atlanta, Georgia 30328
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $186.1M
- vs $191.7M prior year
Same owner · FDD Item 1, page 11
6 other brands on this site name Inspire Brands, Inc. as parent or ultimate parent in their own FDD.
Portfolio: Inspire Brands
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- David Graves
- Headquarters
- GA
- Founded
- 2015
- FDD year
- 2026
- States available
- 47
Can you afford it, and what does the money buy?
Entry cost runs 242% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Development Fee | $6K | $13K | |
| Franchise Fee | $0 | $38K | |
| Fees and Expenses During Training | $10K | $25K | |
| Lease Deposits and Payments | $12K | $50K | |
| Site Costs | $0 | $451K | |
| Landscaping | $0 | $45K | |
| Civil & Architectural Drawings / Professional Fees | $40K | $152K | |
| Zoning / Permitting Costs | $1K | $112K | |
| Building Costs | $400K | $850K | |
| Equipment | $225K | $325K | |
| Computer Hardware and Software / POS | $32K | $55K | |
| Decor Package | $11K | $35K | |
| Signage & Drive Thru | $44K | $88K | |
| Pre-Opening Wages | $21K | $41K | |
| Opening Inventory | $18K | $26K | |
| Insurance | $10K | $16K | |
| Working Capital / Additional Funds | $33K | $100K | |
| Rent (one month) | $4K | $10K | |
| Business Licenses, Health Permits, Utilities Deposits | $1K | $25K | |
| Total initial investment | $869K | $2.5M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $869K – $2.5M
- Bottom third — review vs category
- Liquid capital req'd
- $33K – $100K
- Bottom third — review vs category
- Franchise fee
- $19K – $38K
- Middle of category vs category
- Royalty
- 4.0%
- typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 9.2%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $62 |
| Training fee | $2K |
| Transfer fee | $18K |
| Renewal fee | $4K |
| Inventory (initial) | $18K – $26K |
| Total fee load | 9.2% of rev |
What do units actually make?
Average unit sales run 31% above the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Arby’s until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.7M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Arby’s unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $1.3M
- Per unit, per year
- Median gross sales
- $1.2M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 2,182 outlets
- vs category median 19 · large
- Range (low → high)
- $390K→$4.0MCited, not corroborated — printed on page 72 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $809K→$1.9M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.3M/year in gross sales. Revenue-to-investment ratio: 0.8x.
Fee burden
Total ongoing fee load of 9.2% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+1.2% 3-year CAGR) with 3,265 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Arby’s Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3,265
- Opened
- 136
- Last reporting year
- Closed
- 78
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 8
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.4%
- Company-owned
- 921
- Corporate units in the system
- % franchised
- 72%
- vs corporate-owned
- Net growth (3-yr)
- +1.2%
- Net unit change over 3 years
- 3-yr CAGR
- +1.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 8
- Transferred
- 57
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 11
- Franchisor's next-year forecast
- Transfer rate
- 2.8%
- Owners selling to other franchisees
- Continuity rate
- 96.8%
- Units that stayed open
- Termination rate
- 7.1%
- Franchisor-initiated terminations
- Ceased ops
- 3.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 47 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
2,368 current owners across 47 states.
- OH 158
- TX 147
- NC 129
- FL 114
- IL 109
- MO 89
- OK 88
- WI 87
- MI 81
- CA 76
- CO 69
- IN 69
- +35 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 198
- Loan volume
- $122.5M
- Median loan
- $493K
- 50th percentile
- Charge-off rate
- 18.2%
- on 198 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 81.8%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 73
- Defaults
- 33
- Typical loan rate
- 6.0%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7222
- Jobs supported
- 4,513
- 3.7 per loan
- Lender concentration
- 15%
- top lender's share
Borrower mix: 25% went to startups / new businesses, 75% to established operators
Vintage analysis
Arby’s charge-off rate by loan vintage
Top lenders financing Arby’s franchisees
Showing 3 of 73 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Arby’s from SBA 7(a) FOIA data.
- Principal loss rate
- 11.6%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 6.05%
- Avg chargeoff amount
- $432K
- Lender concentration
- 14.7%
- Job velocity
- 3.7 per $100K
- Startup risk premium
- -12.5pp
- Jobs supported
- 4,513
Top SBA lendersTop lender holds 15% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 29 | N/A | N/A | |
| 2 | 14 | N/A | N/A | |
| 3 | 13 | N/A | N/A | |
| 4 | 11 | N/A | N/A | |
| 5 | 7 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 31 | 6 | 25.0% |
| OHOhio | 19 | 0 | 0.0% |
| TXTexas | 17 | 8 | 47.1% |
| FLFlorida | 14 | 2 | 14.3% |
| PAPennsylvania | 13 | 2 | 15.4% |
| NYNew York | 12 | 1 | 9.1% |
| MIMichigan | 10 | 1 | 11.1% |
| WAWashington | 9 | 2 | 25.0% |
| INIndiana | 7 | 0 | 0.0% |
| AZArizona | 6 | 2 | 33.3% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 18.2% — 14% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Arby's presents moderate-to-cautionary risk due to stagnant growth, material litigation affecting brand reputation, opaque profitability disclosure, and elevated royalty burdens on a $1.27M revenue base.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated total revenues of Arby's Franchisor, LLC and Subsidiary for fiscal year ended December 28, 2025 (in thousands), comprising franchise fees and royalty revenues of $112,018K, franchise fees and royalty revenues from affiliates of $68,542K, and other revenues of $5,559K. Audited by KPMG LLP.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 69 / 100 verdict
- 01MINORSlow unit growth of only 2.5% YoY suggests market saturation or franchisee underperformance in mature system
- 02MINORMultiple class action lawsuits regarding product misrepresentation (meat quantity/wagyu content) and data security breaches damage brand reputation and consumer trust
- 03MEDNo disclosed average net income despite $1.27M average revenue creates opacity around actual franchisee profitability and ROI
- 04MEDHigh royalty rates (4-6.2%) combined with undisclosed net margins make it difficult to validate ROI on $651k-$2.45M investment
- 05MINORNo-poaching litigation and multi-state settlements indicate hostile franchisor-franchisee relations and potential labor recruitment restrictions
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail8 matters · Item 3
Litigation cases
Parent, affiliates and predecessor
Concluded (8)
Joseph Alongis v. Arby’s Restaurant Group, Inc.
settledThird-party plaintiff · Arby’s Restaurant Group, Inc. (ARG) · filed 2023-09-05 · United States District Court, Eastern District of New York · 23-cv-6593
“Joseph Alongis v. Arby’s Restaurant Group, Inc. (United States District Court, Eastern District of New York, Case No. 23-cv-6593, filed September 5, 2023). Plaintiff, Joseph Alongis (“Plaintiff”), filed a putative class action against ARG alleging that ARG misrepresented the quantity and quality of meat in an Arby’s sandwich in the photographs it uses in advertisements of certain products.”Page 24 of the 2026 FDD, Item 3
Outcome:“On December 29, 2025, the parties entered into a Confidential Settlement Agreement and Release wherein ARG and Inspire Brands, Inc. agreed to pay Plaintiff a total gross settlement of $625,000 in exchange for a dismissal 17 Arby’s | 2026 FDD 1625640323.4 of the pending action and a release by Plaintiff.”
Jason Jaghori v. Arby’s Restaurant Group, Inc. and Inspire Brands, Inc.
settledThird-party plaintiff · Arby’s Restaurant Group, Inc. (ARG) and Inspire Brands, Inc. · filed 2022-07-07 · United States District Court, Southern District of New York · 1:22-cv-05806
“Jason Jaghori v. Arby’s Restaurant Group, Inc. and Inspire Brands, Inc. (United States District Court, Southern District of New York, Case No. 1:22-cv-05806, filed July 7, 2022). Plaintiff, Jason Jaghori (“Plaintiff”), filed a Class Action Complaint alleging Defendants, Arby’s Restaurant Group, Inc. and Inspire Brands, Inc. (“Defendants”) engaged in “false and deceptive practices in the marketing”Page 25 of the 2026 FDD, Item 3
Outcome:“In the Settlement Agreement, Defendants agreed to pay Plaintiff and Additional Claimant a total gross settlement amount of $155,000 in exchange for a dismissal of the pending action and a release by Plaintiff and Additional Claimant.”
New York v. Dunkin’ Brands, Inc.
concludedGovernment or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-09-26 · N.Y. Supreme Court for New York County · 451787/2019
“New York v. Dunkin’ Brands, Inc. (N.Y. Supreme Court for New York County, Case No. 451787/2019, filed September 26, 2019). In this matter, the N.Y. Attorney General (“NYAG”) filed a lawsuit against our affiliate, DBI, related to credential-stuffing cyberattacks during 2015 and 2018.”Page 28 of the 2026 FDD, Item 3
Outcome:“Under the consent order, DBI agreed to pay $650,000 in penalties and costs, issue certain notices and other types of communications to New York customers, and maintain a comprehensive information security program through September 2026, including precautions and response measures for credential-stuffing attacks.”
The People of the State of California v. Arby’s Restaurant Group, Inc.
settledGovernment or regulatory action · Arby’s Restaurant Group, Inc. (ARG) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09397
“The People of the State of California v. Arby’s Restaurant Group, Inc. (California Superior Court, Los Angeles County, Case No. 19STCV09397, filed March 19, 2019). On March 11, 2019, ARG entered into a settlement agreement with the states of Massachusetts, California, Illinois, Iowa, Maryland, Minnesota, New Jersey, New York, North Carolina, Oregon and Pennsylvania.”Page 27 of the 2026 FDD, Item 3
The People of the State of California v. Dunkin’ Brands, Inc.
settledGovernment or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09597
“The People of the State of California v. Dunkin’ Brands, Inc. (California Superior Court, Los Angeles County, Case No. 19STCV09597, filed on March 19, 2019.) On March 14, 2019, our affiliate, Dunkin Brands, Inc. (“DBI”), entered into a settlement agreement with the Attorneys General of 13 states and jurisdictions concerning the inclusion of “no-poaching” provisions in Dunkin’ restaurant franchise”Page 27 of the 2026 FDD, Item 3
In re: Arby’s Restaurant Group, Inc. Data Security Litigation, Case No. 1:17-cv-1035-AT (Consolidated Consumer Case)
settledThird-party plaintiff · Arby’s Restaurant Group, Inc. (ARG) · filed 2017-03-22 · United States District Court, Northern District of Georgia, Atlanta Division · 1:17-cv-1035-AT (member cases 1:17-cv-1035-AT Weiss; 1:17-cv-1529-AT Russell)
“In re: Arby’s Restaurant Group, Inc. Data Security Litigation, Case No. 1:17-cv-1035-AT (Consolidated Consumer Case) Jacqueline Weiss and Joseph Weiss, individually and on behalf of all others similarly situated v. Arby’s Restaurant Group, Inc. (United States District Court, Northern District of Georgia, Atlanta Division, Case No. 1:17-cv-1035-AT, filed March 22, 2017).”Page 25 of the 2026 FDD, Item 3
In re: Arby’s Restaurant Group, Inc. Data Security Litigation, Case No. 1:17-cv-514-AT (Consolidated Financial Institution Case)
settledThird-party plaintiff · Arby’s Restaurant Group, Inc. (ARG) · filed 2017 · United States District Court, Northern District of Georgia, Atlanta Division · 1:17-cv-514-AT (7 member credit-union cases)
“In re: Arby’s Restaurant Group, Inc. Data Security Litigation, Case No. 1:17-cv-514-AT (Consolidated Financial Institution Case) Alcoa Cmty. Fed. Credit Union v. Arby’s Restaurant Group, Inc. (United States District Court, Northern District of Georgia, Atlanta Division, Case No. 1:17-cv-00718-WSD, filed Feb. 27, 2017).”Page 26 of the 2026 FDD, Item 3
In the Matter of Jimmy John’s Franchisor SPV LLC
concludedGovernment or regulatory action · Jimmy John’s Franchisor SPV LLC (JJF) · Securities Commissioner of Maryland · 2025-0122
“In the Matter of Jimmy John’s Franchisor SPV LLC (Securities Commissioner of Maryland, Case No. 2025-0122). On March 28, 2022, JJF filed a Franchise Disclosure Document (FDD) with the Maryland Securities Division as part of a notice of exemption from franchise registration. In this filing, JJF listed the former franchisees but omitted the required contact information for the majority of those”Page 28 of the 2026 FDD, Item 3
Outcome:“Under the terms of the Consent Order, JJF agreed to pay a $30,000 civil monetary penalty, to permanently cease and desist from the offer or sale of franchises in violation of the Maryland Franchise Law, and to disclose the existence of the Consent Order in future franchise disclosure documents.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 9.2% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | GA |
| Litigation count | 8 |
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 336 hrs
- Training location
- Designated Arby's Restaurant
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- PAR Brink
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: PAR Brink
Item 20 · call current owners
Franchisee Contacts
2,368 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
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 $869K – $2.5M, with an initial franchise fee of $38K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Arby’s franchise owners earn?
According to Item 19 of the Arby’s FDD, the average gross sales per unit is $1.3M. The median is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Arby’s?
Arby’s is franchised by Arby's Franchisor, LLC. Its parent company is Arby's Restaurant Group, Inc. (ARG). The ultimate parent named in the FDD is Inspire Brands, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Arby’s FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Arby’s FDD and qualifies whose outlets they describe.
What is Arby’s's franchise failure rate?
Based on SBA 7(a) loan data, Arby’s has a charge-off rate of 18.2% across 198 loans, meaning 18.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Arby’s franchise locations are there?
As of their most recent FDD filing, Arby’s has 3,265 total units in the United States, including 2,344 franchised units and 921 company-owned units. 136 new units were opened in the latest reporting year.
Is Arby’s a good franchise to buy?
FranchiseVerdict rates Arby’s as a B-grade franchise with a verdict score of 69 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.