Arby’s Franchise FDD, Profits & Costs (2025)
Arby’s stands as a significant player in the quick-service restaurant (QSR) industry, recognized for its unique positioning and innovative approach to fast food. Founded in 1964, Arby’s has grown to become the second-largest sandwich restaurant brand in the world.
The brand, which is part of the Inspire Brands family, operates from its headquarters in Atlanta, Georgia.
Arby’s differentiates itself through its Fast Crafted® restaurant services, blending the efficiency of quick-service with the quality and personalized care characteristic of fast-casual dining experiences.
Arby’s franchise opportunities offer a compelling investment for those looking to enter the QSR market. The brand’s franchise system benefits from its long-standing industry presence since 1965, capitalizing on proven operational efficiencies, a recognized brand name, and a menu that promises both quality and convenience.
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Initial Investment
It costs on average between $644,950 – $2,451,000 to start a Arby’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location and whether the franchisee chooses to lease or purchase the property. Indeed, Arby’s offers 2 types of franchises:
| Location Type | Initial Investment |
|---|---|
| Free-Standing | $861,950 – $2,451,000 |
| Non-Free-Standing | $644,950 – $1,324,000 |
We are summarizing below the main costs associated with opening a Arby’s franchised restaurant. For more information on costs required to start an Arby’s franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Free-Standing | Non-Free-Standing |
|---|---|---|
| Development Fee | $6,250 – $12,500 | $6,250 – $12,500 |
| License Fee | $0 – $37,500 | $0 – $37,500 |
| Lease Deposits and Payments | $12,000 – $50,000 | $12,000 – $50,000 |
| Site Costs | $0 – $451,000 | $0 – $4,000 |
| Landscaping | $0 – $45,000 | N/A |
| Equipment | $753,000 – $1,615,000 | $536,000 – $1,030,000 |
| Opening Inventory | $18,000 – $26,000 | $18,000 – $26,000 |
| Insurance | $8,400 – $14,400 | $8,400 – $14,400 |
| Working Capital / Additional Funds | $33,000 – $100,000 | $33,000 – $100,000 |
| Rent (one month) | $4,000 – $10,000 | $4,000 – $10,000 |
| Business Licenses, Health Permits, Utilities Deposits | $1,000 – $25,000 | $1,000 – $25,000 |
| Total Pre-Opening / Operating Deposits | $85,700 – $216,600 | $85,700 – $216,600 |
| Total Estimated Initial Investment | $861,950 – $2,451,000 | $644,950 – $1,324,000 |
Average Revenue (AUV)
An Arby’s franchised restaurant makes on average $1,263,000 in revenue (AUV) per year. This compares to $838,000 yearly revenue for similar restaurant sandwich franchises.
Here is the extract from the FDD showing how much revenue Arby’s franchised mature restaurant made on average in 2023.
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Arby’s Franchise Disclosure Document
Frequently Asked Questions
How many Arby’s locations are there?
As of the latest data, Arby’s operates over 3,700 locations across the United States. This include about 2,600 franchise-owned outlets and 1,100 company-owned locations.
This extensive network of restaurants makes Arby’s one of the largest quick-service restaurant chains in the country, providing franchisees with a well-established brand presence and a broad customer base.
What is the total investment required to open an Arby’s franchise?
The total investment required to open an Arby’s franchise ranges from $861,950 – $2,451,000 for the freestanding restaurant format.
What are the ongoing fees for an Arby’s franchise?
Arby’s franchisees are required to pay a 4% royalty fee on gross sales for Traditional Restaurants and 6.2% for Non-Traditional Restaurants. Additionally, there is a minimum advertising and marketing service fee of 4.2% of gross sales for Traditional Restaurants, which includes local advertising efforts.
What are the financial requirements to become an Arby’s franchisee?
To qualify as an Arby’s franchisee, you need a minimum net worth of $1,000,000 and at least $500,000 in liquid assets. These financial requirements ensure that franchisees have the resources necessary to operate their business successfully.
How much can an Arby’s franchise owner expect to earn?
The average gross sales for an Arby’s franchise are approximately $1.26 million per location. Assuming a 15% operating profit margin, $1.26 million yearly revenue can result in $190,000 EBITDA annually.
Whilst EBITDA does not necessarily represent owner’s pay, it can serve as a proxy for how much the owner can pay herself/himself as dividends.
Who owns Arby’s?
Arby’s is owned by Inspire Brands, a large restaurant company that also owns other well-known brands like Buffalo Wild Wings, Sonic Drive-In, Jimmy John’s, and Dunkin’.
Inspire Brands was formed in 2018, and its portfolio includes a variety of restaurant chains across different segments of the food industry.
Arby’s was one of the founding brands of Inspire Brands, having been acquired by the company’s predecessor, Roark Capital Group, in 2011 before Inspire Brands was established.
Disclaimer
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