Arby's Franchise Cost

What's Included in the Arby's Initial Investment

$1,044,500 to $2,281,500 is the total estimated initial investment to open an Arby's franchise. That range covers everything from the franchise fee to the working capital you will need during your first months of operation. The biggest portion goes toward real estate, construction, and the build-out of the restaurant space, which swings widely depending on whether you are building a freestanding drive-thru location or fitting out an inline retail space.

Arby's has been around since 1964, when Forrest and Leroy Raffel opened the first location in Boardman, Ohio. The brand built its identity around slow-roasted beef and a menu that stands apart from the burger-heavy competition. Today, Arby's operates under Inspire Brands out of Atlanta, Georgia, alongside Dunkin', Sonic, Buffalo Wild Wings, Jimmy John's, and Baskin-Robbins. That corporate backing means franchisees get access to shared supply chain resources, cross-brand marketing data, and operational support from one of the largest restaurant companies in the world.

Construction and build-out is the largest variable in the total investment. A ground-up freestanding restaurant with a drive-thru in a high-cost metro area will run close to the top of the range, while converting an existing restaurant space in a smaller market can cut that cost significantly. Arby's restaurants typically run 2,500 to 3,500 square feet, with most locations featuring a drive-thru window that accounts for a large share of total sales.

The "We Have The Meats" tagline is not just marketing. Arby's menu is centered on roast beef sandwiches, curly fries, Jamocha shakes, and a rotating lineup of meat-forward items. That protein-heavy menu means food costs tend to run slightly higher than burger-focused competitors, but the differentiated positioning helps Arby's stand out in a crowded fast food market. If you are comparing sandwich franchises, a Firehouse Subs franchise has a lower total investment but a different service model and average unit volume.

Arby's Franchise Requirements

$1,000,000 minimum net worth and $500,000 in liquid capital are the financial baselines to qualify for an Arby's franchise. These thresholds are standard for QSR brands at this investment level and ensure franchisees have enough financial backing to handle construction costs, pre-opening expenses, and the cash flow demands of the first year.

Arby's favors candidates with restaurant industry experience, particularly those who have run high-volume quick-service or fast-casual operations. Multi-unit operators who can commit to developing several locations within a territory are given priority. The Inspire Brands infrastructure means you will be working within a system that also supports thousands of Dunkin', Sonic, and Buffalo Wild Wings locations, so there is an expectation of operational discipline and brand standards compliance.

Franchising began in 1965, just one year after the first Arby's opened. That long track record means the franchise system is mature, with well-established operating procedures, training programs, and supply chain relationships. With over 3,400 locations across the country, Arby's has saturated many major markets, so new franchisees may find the best opportunities in secondary and emerging markets.

Arby's Franchise Revenue and Profitability

$1.2 million to $1.4 million in estimated average unit volume (AUV) is the typical range for an Arby's franchise location. That puts the brand in the middle of the QSR pack, below powerhouses like Chick-fil-A and McDonald's but competitive within the sandwich and roast beef category. Drive-thru locations tend to perform at the higher end of that range, while inline and nontraditional locations typically come in lower.

The combined royalty and advertising fee totals 8.2% of gross sales (4% royalty plus 4.2% advertising). That is on the higher side compared to some QSR brands, but the advertising fund supports national campaigns, digital marketing, and the kind of brand awareness that drives foot traffic to individual locations. The "We Have The Meats" campaign has been one of the more recognizable QSR marketing efforts of the past decade.

Restaurant-level profit margins in the QSR sandwich segment typically fall between 12% and 20% of revenue after food costs, labor, rent, royalties, and advertising fees. On a $1.3 million AUV, that translates to estimated owner cash flow of roughly $156,000 to $260,000 before taxes and debt service. Actual results vary by location, and first-year numbers often look different from mature-unit performance.

Always review Item 19 (Financial Performance Representations) of the current Arby's Franchise Disclosure Document for the most accurate and up-to-date revenue data. The FDD is the only authoritative source for financial performance claims.

Pros and Cons of Owning an Arby's Franchise

$1M to $2.3M is a serious commitment, so it pays to look at both the strengths and the risks before signing a franchise agreement. Here is a straightforward breakdown.

Pros

• Established brand with 60+ years of history. Arby's has been operating since 1964 and franchising since 1965. That kind of track record means proven systems, brand recognition, and a loyal customer base that spans generations.
• Inspire Brands backing. Being part of the Inspire Brands portfolio (Dunkin', Sonic, Buffalo Wild Wings, Jimmy John's, Baskin-Robbins) gives franchisees access to corporate-level supply chain negotiation, technology platforms, and cross-brand marketing intelligence.
• Differentiated menu. Arby's does not compete directly with burger chains. The roast beef and meat-focused menu carves out a distinct position in the QSR landscape, reducing head-to-head competition with McDonald's, Burger King, and Wendy's.
• Strong drive-thru model. Drive-thru sales make up a significant portion of revenue at most Arby's locations. The drive-thru model proved resilient during the pandemic and continues to be the preferred ordering method for many QSR customers.
• National marketing support. The 4.2% advertising fee funds national TV campaigns, digital advertising, and social media marketing that would be impossible for individual operators to replicate on their own.

Cons

• Higher combined ongoing fees. The 4% royalty plus 4.2% advertising fee totals 8.2% of gross sales. That is a meaningful chunk of revenue that reduces your operating margin compared to brands with lower fee structures.
• Moderate AUV. At $1.2M to $1.4M, Arby's average unit volume sits below many top-tier QSR brands. Lower revenue means tighter margins and less room for error on cost management.
• Saturated markets. With 3,400+ locations already open, many prime markets are already developed. New franchisees may need to target secondary or rural markets where population density and traffic counts are lower.
• Protein-heavy food costs. Arby's meat-focused menu means food costs can be higher than burger or chicken competitors, especially when beef and turkey prices spike. Menu pricing must balance food costs against customer expectations.
• Competitive QSR sandwich space. Arby's competes with Jersey Mike's, Jimmy John's, Firehouse Subs, and Subway in the broader sandwich category, along with traditional fast food chains that continue to add sandwich options.

How to Open an Arby's Franchise

$1,044,500 to $2,281,500 and 10 to 16 months is the typical range for investment and timeline from application to grand opening. Here are the steps to get started.

1. Research and Self-Assessment

Start by reviewing the Arby's franchise opportunity on the Inspire Brands corporate website. Confirm that you meet the financial requirements ($1M net worth, $500K liquid capital) and have the operational experience the company prefers. Reach out to existing Arby's franchisees to get firsthand perspectives on ownership.

2. Submit a Franchise Application

Complete the formal franchise application through Arby's development team. The application covers your financial background, business experience, target market, and development goals. Arby's will evaluate your qualifications against their franchisee profile.

3. FDD Review and Discovery Day

If your application moves forward, you will receive the Franchise Disclosure Document (FDD). Review it carefully with a franchise attorney who specializes in restaurant deals. Arby's will invite qualified candidates to a Discovery Day at the Inspire Brands headquarters in Atlanta, where you will meet the leadership team and see the support systems firsthand.

4. Secure Financing

With FDD review complete, finalize your financing. SBA loans, conventional bank loans, and private investors are common funding sources for QSR franchises. Lenders are generally familiar with the Arby's brand and its operating history. Plan for the full investment range plus a financial buffer for unexpected costs.

5. Site Selection and Construction

Work with the Arby's real estate team to identify and secure a location in your approved territory. The company has specific site criteria including traffic counts, visibility, lot size for drive-thru operations, and local demographics. Construction and build-out typically take 6 to 10 months depending on permitting timelines and whether you are building new or converting an existing restaurant space.

6. Training Program

Before opening, you and your management team will complete the Arby's training program. This covers restaurant operations, food preparation, safety standards, hiring, scheduling, and financial management. Training includes both classroom sessions and hands-on work in an operating Arby's location.

7. Grand Opening

Arby's provides grand opening support including marketing materials, staffing guidance, and on-site corporate support during the first days of operation. The $10,000 to $40,000 grand opening marketing budget covers local advertising, community outreach, and promotional offers to build initial traffic and awareness in your market.

For a side-by-side look at how Arby's compares to other restaurant brands, see our food franchise cost comparison and most profitable franchises rankings.

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