Arby's^®

Food & Beverage • Year: 2026

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What Is Arby's?

Arby's is a quick-service, Fast Crafted® franchise specializing in deli-inspired sandwiches and meat-focused proteins with sides such as curly fries and jamocha shakes. The system emphasizes limited-service restaurant operations that blend quick-service speed with made-for-you quality; Traditional Restaurants typically include a drive-thru, while Non-Traditional Restaurants occupy smaller footprints with no or very limited seating. Arby's restaurants may operate in free-standing buildings, convenience stores, travel plazas and truck stops, end-cap and inline retail spaces, malls, airports, military bases, hospitals, stadiums, theme parks, arenas, casinos, colleges and other institutional or captive-audience locations, and may also be offered at Multi-Brand Locations combined with other franchised restaurants.

Arby's Franchise: Pros and Cons

Strong training and support - a perfect 100 score and 336 hours of initial training - shows the franchisor invests heavily in onboarding; however, the system faces significant legal risk, with 15 disclosed lawsuits including 12 fraud allegations and four government penalties, creating potential costs and reputational damage.

Pros

A 100 training-and-support score plus 336 hours of initial training-both well above typical-shows the franchisor invests heavily in onboarding and operator readiness before you open.

A $6,250 minimum initial franchise fee is well below what's common in Food & Beverage, leaving you with more cash on hand for build-out and early working capital.

Franchisor-initiated enforcement actions are zero, unusually low for the sector, which suggests the franchisor rarely needs formal legal measures to manage operators and may run a cooperative franchisor-franchisee relationship.

Cons

A $2,456,600 maximum total startup estimate is well above typical for Food & Beverage; combined with high equipment costs (Item 7 assets: $319,000 minimum to $494,000 maximum) and a $25,000 maximum training fee, this means substantially higher upfront capital needs and tighter financing requirements.

There are 15 disclosed lawsuits, including 12 cases alleging fraud and 4 government penalties-an unusually high level of legal and regulatory exposure that creates added operational friction, potential costs, and reputational risk.

The system shows elevated operator churn: 70 reacquired outlets and 8 terminations, both well above typical, indicating many past operators have exited the system and raising concerns about long-term operator stability.

Lawsuits & Legal Risk

81/100

NORMAL

Arby's - The Facts: Arby's faced recent consumer and class actions alleging misleading advertising (sandwich and “wagyu” labeling), multi‑state enforcement over no‑poaching franchise provisions, and consolidated data‑security suits; most matters were resolved via settlement without admission of liability. The Advice: Review franchise agreement employee‑solicitation and post‑termination obligations, examine marketing and advertising approval rules and required disclaimers, and request current data‑security policies, breach history, and cyber‑liability insurance documentation.

Territory Protection

43/100

NORMAL

Arby's grants a site-specific Protected Area-commonly a 1‑mile radius for freestanding restaurants; Non‑Traditional and certain institutional locations are excluded. These rights are contingent on meeting performance quotas; the franchisor retains the right to develop nearby units and to sell through alternative channels (including e‑commerce), affecting market density and exclusivity.

Training & Support

100

Excellent

Arby's provides a Comprehensive 336-hour training curriculum designed for two individuals included in the initial fee to prepare them for launch. The program includes on-site launch assistance to support operational readiness; travel and lodging expenses are the responsibility of the franchisee, and on-site support is provided without additional cost.

How Much Does It Cost to Open an Arby's Franchise?

Opening an Arby's franchise requires a total initial investment of $651,550 to $2,456,600, according to the 2026 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$651,550

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$2,456,600

Minimum Investment Breakdown

Franchise Fee$6,250

Real Estate$456,000

Equipment & Assets$319,000

Reserves$33,000

Training$10,000

Other$0

Maximum Investment Breakdown

Franchise Fee$50,000

Real Estate$1,062,400

Equipment & Assets$494,000

Reserves$100,000

Training$25,000

Other$725,200

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do Arby's Franchise Owners Make?

Arby's franchise locations reported average gross sales of $1,274,787 and median gross sales of $1,201,669 in 2026, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$1,274,787

Median Gross Sales:

$1,201,669

High Gross Sales:

$4,008,289

Low Gross Sales:

$390,125

Sample Size:

2182

Percent Attaining Average:

43.0%

Audit Status:

Unaudited

Franchise vs Corporate Performance: The Item 19 AUVs are for franchised Traditional Arby’s Restaurants only (the disclosed AUVs equal annual gross sales). The reported dataset covers 2,182 franchised Traditional Restaurants for 2025; company‑owned restaurants and a number of excluded groups (new openings, temporarily closed, transferred, non‑traditional, and those that closed in 2025) were explicitly removed from the sample. The franchised average AUV for 2025 is $1,274,787 and the median AUV is $1,201,669, indicating the figures represent franchised outlet performance rather than corporate (company‑owned) outlet performance.

Performance Variability Analysis: There is meaningful dispersion in AUVs: lowest reported AUV is $390,125 while the highest is $4,008,289, and the average (≈$1.275M) is modestly above the median (≈$1.202M), indicating a right‑skewed distribution driven by higher‑performing units. 939 of 2,182 restaurants (43%) are above the system average, confirming that a minority of units exceed the mean and that variability across sites (location type, size, drive‑thru, market conditions) materially affects revenue outcomes.

Data Scope and Limitations: The franchisor states AUVs were calculated from franchisee sales reports and POS data and that they have not independently audited those sources. Notes disclose exclusions (e.g., 21 restaurants opened in 2025, 115 transferred in Dec 2025, 19 non‑traditional, 78 closed in 2025, company‑owned outlets, etc.). The Item 19 figures represent historical 2025 gross sales only and do not reflect costs (COGS, operating expenses) or net income; therefore no COGS or net income metrics are provided in the Item 19 data.

Frequently Asked Questions

Is Arby's a good franchise to own?

Whether Arby's is a good franchise depends on your goals, experience, and local market. Key factors from the 2026 FDD: Arby's operates 3265 locations, received a legal risk score of 81/100, a training and support score of 100/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

Is an Arby's franchise worth the investment?

The value of an Arby's franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $651,550 to $2,456,600. Arby's disclosed average gross sales of $1,274,787 in 2026. The system reported 8 terminated units in 2026. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.

What is the failure rate of Arby's franchises?

In the 2026 FDD, Arby's reported 8 terminated franchises and 0 non-renewals out of 3265 total locations. Franchise closures can result from many factors including market conditions, operator decisions, lease expirations, and franchisor enforcement actions. The FDD's Item 20 provides the most detailed unit turnover data.

How long does it take to break even with an Arby's franchise?

Break-even timelines for Arby's franchises are not disclosed in the 2026 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is Arby's a franchise or a corporate-owned business?

As of the 2026 FDD, Arby's operates 2344 franchised locations and 921 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

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