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QSR 3,400 Units

Arby's Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$313,000 – $3,454,000

Franchise Fee

$37,500

Royalty Rate

4.0%

Initial Investment Range

Low: $313,000 High: $3,454,000

The total initial investment to open a Arby's franchise ranges from $313,000 to $3,454,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $37,500.

Midpoint estimate: $1,883,500

Franchise Fee

$37,500

One-time initial fee

The Arby's franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Arby's brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

4.0%

of gross revenue

Ad/Marketing Fund

4.2%

of gross revenue

Total Ongoing Fee Burden: 8.2% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty Fee 4.0 PCT Manually corrected — 4% royalty per FDD
Advertising Fee 4.2 PCT Manually corrected — 4.2% ad fund per FDD

What You Get

Category

QSR

System Size

3,400 units

Franchise Score

76

out of 100

Arby's operates a quick-service restaurant chain specializing in roast beef sandwiches and other meat-focused products. The brand differentiates itself through its meat-centric menu and commitment to quality ingredients in the QSR space.

Financial Performance (Item 19)

Median Revenue

$1,350,603

per year, per location

Profitability Estimate

Estimated Owner Profit

$225,551

per year

Profit Margin

16.7%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 8.4 years

Based on midpoint investment of $1,883,500 and estimated annual owner profit of $225,551.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.0%

Low risk — below industry average

Net Unit Growth

-5 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 2291 +62 2305
2023 2305 +55 -1 2316
2024 2316 +33 2286

Is a Arby's Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Arby's franchise opportunity:

Overall Score

76/100

Strong opportunity

Est. Payback Period

8.4 yrs

Longer payback

Risk Level

Low

0.0% annual closure rate

Arby's scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $1,350,603 and a combined fee burden of 8.2% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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