Arby’s Franchise Costs, Profit & Requirements

by Nick

Introduction to Arby’s

Arby’s is a well-known American fast-food restaurant chain that specializes in serving roast beef sandwiches, along with other deli-style sandwiches, salads, and sides. Founded in 1964 by Forrest Raffel and Leroy Raffel in Boardman, Ohio, Arby’s has grown to become one of the largest fast-food sandwich chains in the United States.

The name “Arby’s” is derived from the founders’ initials, R.B., which stands for “Raffel Brothers.” Initially offering only roast beef sandwiches, Arby’s has since expanded its menu to include a variety of meats, including turkey, chicken, and ham, as well as specialty items like the “Arby’s Sauce” and “Horsey Sauce.” The chain is also known for its curly fries and Jamocha shakes.


Arby’s operates over 3,300 restaurants worldwide, including locations in the United States, Canada, and various international markets. The company is headquartered in Atlanta, Georgia, and is owned by Inspire Brands, a multi-brand restaurant company that also owns other popular chains such as Buffalo Wild Wings, Sonic Drive-In, and Jimmy John’s.


Franchise Costs

Initial Franchise Fee: The initial franchise fee for Arby’s can range from $37,500 to $40,000, depending on the location and other factors.


Total Initial Investment: The total initial investment required to open an Arby’s franchise typically ranges from $314,000 to $1,836,000. This includes expenses such as real estate, equipment, supplies, and working capital.


Ongoing Royalty Fees: Arby’s charges ongoing royalty fees, typically around 4% to 6% of gross sales, paid weekly or monthly.

Advertising Fees: Franchisees are required to contribute to the national advertising fund, which typically ranges from 1.7% to 4% of gross sales.


Experience: While prior restaurant or business experience is preferred, it is not always required. Arby’s looks for franchisees who are committed to the brand and willing to follow its proven business model.

Financial Stability: Prospective franchisees must have a minimum net worth of $500,000 and liquid assets of at least $250,000 to qualify for financing.

Location: Arby’s franchises are typically located in high-traffic areas such as shopping centers, airports, and highway rest stops.

Primary Catering Service to Customers

Arby’s menu features a variety of sandwiches, sides, salads, and beverages. While the specific offerings may vary slightly depending on location and season, the following are some of the popular items commonly found on Arby’s menu:


Classic Roast Beef: Thinly sliced roast beef served on a toasted sesame seed bun.

Beef ‘n Cheddar: Classic roast beef sandwich topped with cheddar cheese sauce and served on a toasted onion roll.

Roast Turkey & Swiss: Sliced roast turkey with Swiss cheese, lettuce, tomato, and mayonnaise on honey wheat bread.

Reuben: Thinly sliced corned beef topped with sauerkraut, Swiss cheese, and Thousand Island dressing on marble rye bread.

Classic French Dip & Swiss: Sliced roast beef on a toasted sub roll served with au jus for dipping.


Curly Fries: Seasoned curly-cut fries with a crispy texture.

Potato Cakes: Deep-fried potato cakes served crispy on the outside and soft on the inside.

Mozzarella Sticks: Breaded and fried mozzarella cheese sticks served with marinara sauce.

Jalapeño Bites: Breaded and fried jalapeño peppers filled with cream cheese.


Crispy Chicken Farmhouse Salad: Crispy chicken tenders on a bed of chopped lettuce, diced tomatoes, shredded cheese, and bacon, served with ranch dressing.

Roast Turkey Farmhouse Salad: Sliced roast turkey on a bed of chopped lettuce, diced tomatoes, shredded cheese, and bacon, served with ranch dressing.

Side Salad: A smaller portion of chopped lettuce, diced tomatoes, and shredded cheese, served with choice of dressing.


Soft Drinks: Coca-Cola products available in various sizes.

Iced Tea: Sweetened and unsweetened iced tea options.

Shake: Creamy milkshakes available in flavors such as chocolate, vanilla, and Jamocha (coffee-flavored).

Brand Advantages

Widely Known Brand: Arby’s is a well-known and respected brand in the quick-service restaurant industry, with a history dating back to 1964.

Diverse Menu: Arby’s offers a diverse menu beyond roast beef sandwiches, including chicken, turkey, and other innovative items to cater to various tastes.

Adequate Support and Training: Arby’s provides comprehensive training programs and ongoing support to franchisees, covering areas such as operations, marketing, and management.

Professional Marketing Support: Franchisees benefit from national marketing campaigns and advertising efforts conducted by Arby’s to drive brand awareness and customer traffic.

Profit Potential

Profitability can vary depending on factors such as location, sales volume, operating costs, and market conditions.

According to industry estimates, the average annual sales for an Arby’s franchise range from $1 million to $1.7 million, with potential profit margins of 10% to 15%.

Franchisees who effectively manage costs, provide excellent customer service, and capitalize on marketing opportunities can achieve higher profitability.

Investing in an Arby’s franchise offers the opportunity to leverage a well-established brand, diverse menu offerings, and comprehensive support programs. While initial costs and requirements should be carefully considered, the potential for profitability and success can be substantial for qualified and committed franchisees.


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