Arby’s Franchise Cost, Revenue & Review 2026
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: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $869K – $2.5M
- 91st pct Service Resta…
- Avg gross sales
- $1.3M
- 21st pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 3,265
- 96th 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 avg · 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 A (Strongest tier), 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).
- 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)
- Ultimate parent
- Inspire Brands, Inc.
- 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
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 153% 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%
- percentage · 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 land near the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$166K
13.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
10.4 yrs
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
10%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Arby’s units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.6M purchase
Total debt
$6.1M
SBA $3.8M + senior + seller note
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
- vs category median 20 · large
- Range (low → high)
- $390K→$4.0M
- 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 782 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 average of 7.9%.
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 averages
How Arby’s Compares
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
- 70
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 8
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.9%
- 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
3-year detail · Item 20
- Opened (3yr)
- 55
- Closed (3yr)
- 29
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 14
- Transfers (3yr)
- 87
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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).
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%
- 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: 0% went to startups / new businesses, 100% 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.
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.
Litigation (Item 3)
5 concluded actions: (1) Alongis class action re sandwich misrepresentation, settled $625,000 in 2025; (2) Jaghori wagyu beef class action, settled $155,000 in 2022; (3) Data Security Consumer consolidated class action, settled up to $2M cap in 2019; (4) Data Security Financial Institution consolidated case, settled up to $2.99M cap in 2020; (5) Multi-jurisdictional no-poaching settlement with 11 state AGs in 2019, no monetary payment. No pending actions disclosed.
Largest disclosed settlement: $2,987,136
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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
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 |
| 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 | 5 |
View Item 3 litigation summary
5 concluded actions: (1) Alongis class action re sandwich misrepresentation, settled $625,000 in 2025; (2) Jaghori wagyu beef class action, settled $155,000 in 2022; (3) Data Security Consumer consolidated class action, settled up to $2M cap in 2019; (4) Data Security Financial Institution consolidated case, settled up to $2.99M cap in 2020; (5) Multi-jurisdictional no-poaching settlement with 11 state AGs in 2019, no monetary payment. No pending actions disclosed.
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
FDD download
Arby’s · FDD (2026) PDF
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.
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 A-grade franchise with a verdict score of 69 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
For franchisors
Are you the franchisor?
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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.