Arby's Franchise

Arby's, a Inspire Brands franchise, has been franchising since 1965 - 1 years after the concept was founded in 1964 , currently with 3,511 total locations in the food & beverage sector, headquartered in GA. Per the 2024 FDD, budget a total initial investment of $342K to $2.3M - a 558% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $38K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Royalty payments here are set at 4.0% of gross sales; add the 4.2% advertising-fund contribution and the combined ongoing draw reaches 8.2% of gross sales. Critically, Arby's does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $1.3M; at that revenue level the typical unit hands back roughly $52K a year in royalty alone. Revenue is not profit, actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently positive: Arby's added units at a 0.6% net rate year-over-year (100 openings, 80 closures). Consistent expansion usually means the unit model pencils out for new owners, but a late-cycle growth spike can also come from an aggressive sales push rather than genuinely strong store-level economics.