Opening an Arby's franchise is one of the most compelling opportunities in the fast casual restaurant sector. With over 3,500 locations across the United States and a brand recognized for its distinctive roast beef sandwiches and premium meats, Arby's offers franchisees a proven business model backed by Inspire Brands, one of the largest restaurant companies in North America. But understanding Arby's franchise cost and how to finance your investment is the critical first step before you can open your doors.
This guide covers everything you need to know about securing an Arby's franchise loan, from the total investment required and available financing options to qualification requirements, real-world scenarios, and how Crestmont Capital can help you build the right capital structure for your franchise journey.
In This Article
Arby's Restaurant Group, now part of Inspire Brands, is one of the largest fast casual sandwich chains in the world. Founded in 1964 and best known for its slow-roasted beef, Arby's has built a loyal customer base across diverse markets ranging from suburban strip centers to highway travel plazas. The brand's parent company also owns Buffalo Wild Wings, Sonic, Dunkin', and other major chains, giving Arby's franchisees access to a sophisticated corporate infrastructure that includes supply chain management, marketing, and operational support.
According to Arby's Franchise Disclosure Document (FDD), the total initial investment for a new Arby's franchise typically ranges from $628,000 to $2.4 million. This wide range reflects the significant variation in real estate costs, construction expenses, and market conditions across the United States. The Arby's franchise cost breakdown helps prospective franchisees understand exactly where their capital will be deployed.
Beyond the initial investment, Arby's franchisees pay an ongoing royalty fee of approximately 4% of gross sales plus a 4.2% advertising contribution. These recurring obligations are critical to model accurately in your financial projections, as they directly affect your debt service coverage ratio and cash flow available for loan repayment.
Key Fact: According to the SBA, franchise businesses consistently show higher survival rates than independent restaurant startups. Arby's is registered in the SBA Franchise Directory, which simplifies the SBA loan eligibility verification process for approved applicants.
Before examining how to finance an Arby's location, it helps to understand why the brand attracts serious franchise investors. Arby's offers several competitive advantages that lenders also view favorably when evaluating franchise loan applications.
First, Arby's average unit volume (AUV) has grown consistently over the past decade. The brand has successfully repositioned itself from a struggling legacy chain to a premium fast casual concept with high-quality ingredients and a differentiated menu. This turnaround story translates into stronger unit economics that support franchise loan repayment.
Second, Inspire Brands provides franchisees with comprehensive training programs, operational support, supply chain advantages, and proven marketing systems. Lenders value these structural supports because they reduce the operational risk associated with a new restaurant opening. A brand with strong franchisor support is statistically less likely to experience the cash flow problems that lead to loan default.
Third, Arby's has a significant geographic growth runway. Unlike saturated fast food categories, Arby's still has substantial whitespace in many regional markets, giving new franchisees the opportunity to capture first-mover advantages in their territories. According to CNBC's small business reporting, QSR franchises with strong parent company infrastructure and defined market development territories represent some of the lowest-risk franchise investments available to qualified operators.
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Apply Now →Securing an Arby's franchise loan follows a structured process that parallels securing any major commercial loan, with some franchise-specific elements layered in. Understanding the sequence of steps helps you prepare effectively and avoid common delays.
Step-by-Step Process
How Arby's Franchise Financing Works
Franchise investors typically draw from several different financing products to fund an Arby's location. Understanding the mechanics, benefits, and trade-offs of each option helps you build the optimal capital stack for your project.
The SBA 7(a) loan program is the most popular financing vehicle for franchise businesses in the United States. With maximum loan amounts of $5 million, repayment terms of up to 25 years for real estate and 10 years for equipment, and competitive interest rates, the SBA 7(a) provides the flexibility that most Arby's franchisees need. Because Arby's is registered in the SBA Franchise Directory, lenders can verify franchise eligibility efficiently without requiring a separate review of the franchise agreement.
SBA 7(a) loans require a personal guarantee from all owners with 20% or more equity in the borrowing entity. They also require collateral when available, though the SBA does not require lenders to decline a loan solely for lack of collateral. The minimum equity injection for most SBA franchise loans is 10%-20% of the total project cost.
The SBA 504 program is specifically structured for major fixed asset purchases including commercial real estate and large equipment. If you are purchasing the land or building for your Arby's location, the 504 program offers long-term, fixed-rate financing at favorable rates. The structure involves a bank covering 50% of the project cost, an SBA Certified Development Company funding 40%, and the franchisee contributing 10%. This lower equity requirement makes the 504 program attractive for capital-intensive real estate-heavy projects.
Banks and credit unions offer conventional commercial term loans for franchise financing. These typically require stronger personal financial profiles and higher down payments (20%-30%) compared to SBA products, but they often close faster. Multi-unit operators with established cash flow, strong balance sheets, and proven track records frequently qualify for conventional financing at rates that may beat SBA options.
The kitchen equipment required for an Arby's location, including commercial slicers, roasters, fryers, heated holding units, and POS systems, represents a significant line item in the startup budget. Dedicated equipment financing allows you to spread this cost over 24-84 months while using the equipment itself as collateral. Equipment loans are often easier to qualify for than general business loans, and separating equipment from your primary loan can optimize overall financing costs.
Once your Arby's is operational, a business line of credit provides a flexible, revolving source of working capital for managing cash flow fluctuations, funding seasonal staffing increases, or responding to unexpected operational expenses. Lines of credit are particularly useful in the first 12-18 months of operation when revenue is still ramping up.
Short-term working capital loans can bridge cash flow gaps between when expenses are due and when revenues are collected. For franchisees managing the payroll and inventory demands of a new restaurant opening, having access to quick-deploy working capital provides an important operational safety net.
Arby's Franchise at a Glance
Key Statistics Every Prospective Franchisee Should Know
3,500+
U.S. Arby's locations
$37,500
Initial franchise fee
4%
Ongoing royalty rate
60 yrs+
Brand heritage (est. 1964)
Lenders evaluate Arby's franchise loan applications across several dimensions. Knowing what they look for helps you structure the strongest possible application before you submit.
For SBA franchise loans, most lenders require a minimum personal credit score of 650-680. Conventional lenders typically prefer 700 or above. Higher credit scores open access to lower interest rates and more favorable loan terms, which meaningfully reduces your monthly debt service on a multi-million dollar franchise investment.
Arby's Restaurant Group requires prospective franchisees to demonstrate a minimum net worth of $500,000 and liquid assets of at least $250,000. These requirements are lower than many premium QSR franchises, making Arby's accessible to a broader pool of qualified investors. Lenders independently verify your net worth and liquidity through personal financial statements and supporting documentation.
Arby's and lenders both prefer franchisees with prior food service management or multi-unit business ownership experience. While first-time franchisees can qualify, demonstrating relevant operational background strengthens your application significantly. Some lenders may require more collateral or a higher equity injection from applicants without restaurant industry experience.
A compelling business plan with realistic five-year financial projections is essential for franchise loan approval. Lenders use your projections to calculate the debt service coverage ratio (DSCR), which measures whether your projected operating income is sufficient to cover your loan payments with a comfortable margin. Most lenders require a minimum DSCR of 1.25, meaning your income must exceed your debt service by at least 25%. According to Reuters Finance, restaurants with strong pre-opening financial modeling show notably better loan repayment outcomes than those without detailed projections.
SBA loans require lenders to take available collateral when it exists, but they cannot decline a loan solely based on insufficient collateral. For borrowers with limited collateral, alternative financing options may provide a path forward. Common collateral sources for franchise loans include the restaurant's equipment, commercial real estate, and personal assets such as a primary residence.
Pro Tip: Before applying for an Arby's franchise loan, review your personal credit report from all three major bureaus. Dispute any inaccuracies, pay down revolving debt to reduce your credit utilization ratio, and avoid opening new credit accounts for at least six months before your application. Small improvements in your credit score can translate to thousands of dollars in interest savings over the life of a franchise loan.
| Feature | SBA 7(a) | SBA 504 | Conventional | Equipment Loan |
|---|---|---|---|---|
| Max Loan Amount | $5 million | $5.5 million | Varies by lender | Up to $5 million |
| Equity Required | 10%-20% | 10% | 20%-30% | 0%-20% |
| Repayment Term | Up to 25 years | 10-20 years | 5-20 years | 2-7 years |
| Min. Credit Score | 650-680 | 680+ | 700+ | 600+ |
| Funding Speed | 60-120 days | 90-150 days | 45-90 days | 1-3 weeks |
| Best For | First-time franchisees | Property purchase | Established operators | Kitchen equipment |
Get the Right Franchise Loan Structure
Our franchise financing specialists will help you compare options and build the optimal capital stack for your Arby's investment.
Compare My Options →Crestmont Capital is the #1 rated business lender in the United States, and franchise financing is one of our core areas of expertise. We work with aspiring and established QSR franchisees to structure financing solutions that match their capital needs, financial profile, and timeline from the first conversation through closing.
Our team understands the Arby's business model, the Inspire Brands franchise system, and the documentation lenders need to underwrite a compelling franchise application. Whether you need a SBA loan for your first location, equipment financing to outfit your kitchen, or a combination of products that optimizes your total cost of capital, we have the relationships and the expertise to help you execute.
Many Arby's franchisees also work with Crestmont Capital after their initial loan closes. As your restaurant generates cash flow and your operating track record strengthens, you may want to refinance into better terms, finance a remodel, or access working capital for expansion. Our long-term business loans and fast business loans give you access to capital at every stage of your franchise journey.
We also help franchisees who have been declined by traditional banks. If you have been turned away by a conventional lender, alternative financing options may still provide a viable path to franchise ownership. Our advisors assess your full financial picture to identify the most realistic and cost-effective funding strategy. For a deeper look at all available franchise financing products, our comprehensive resource on franchise business loans covers every major option in detail.
Understanding how different franchisees approach the financing process makes the options more concrete. Here are six scenarios that illustrate common approaches to securing an Arby's franchise loan.
A restaurant industry veteran with 15 years of regional management experience receives Arby's franchise approval for a freestanding drive-through location in a growing mid-size market. Total project cost: $1.4 million. She contributes $280,000 (20% equity) from personal savings and secures a $1.12 million SBA 7(a) loan at prime plus 2.75% over 25 years. Monthly debt service is approximately $5,800. Revenue projections based on comparable Arby's units in similar markets show break-even within 14 months.
A regional restaurant investor identifies an Arby's location that is being sold by a retiring franchisee. The seller has operated the unit for 22 years and has three years of P&L statements showing consistent profitability. The investor uses an SBA 7(a) loan to finance the acquisition, including the purchase price, goodwill, and transition working capital. Lenders favor acquisition financing because actual historical revenue data, rather than projections, supports the underwriting. The investor closes in 70 days and transitions ownership seamlessly.
An experienced QSR operator signs a multi-unit development agreement with Arby's for three locations over five years. They work with Crestmont Capital to develop a phased financing strategy: SBA 504 financing for the first location where they own the real estate, conventional financing for the second based on the cash flow from the first, and equipment financing for a third using strengthened borrowing capacity. This sequenced approach minimizes the total cost of capital across the portfolio.
An Arby's franchisee is required to complete a brand-standard remodel as a condition of their franchise renewal. Total renovation cost: $375,000. They use a combination of accumulated cash reserves and a targeted small business loan to fund the project without touching their operating capital. The remodel is completed in six weeks during a lower-traffic seasonal period to minimize revenue disruption.
A family-owned restaurant group decides to convert two of their existing locations to Arby's franchises. The conversion reduces construction costs substantially compared to new builds, as the kitchen infrastructure is largely in place. They use SBA 7(a) loans for both conversions, leveraging the equity in their owned properties as collateral to reduce the required equity injection. According to Forbes Business Council, conversions can reduce the total startup investment by 30%-50% compared to new construction, creating a more favorable loan-to-value ratio for lenders.
An operator secures an Arby's franchise for a non-traditional location inside a highway travel plaza. Non-traditional units typically have lower build-out costs and shorter development timelines. Total project cost: $420,000. Equipment financing covers the kitchen buildout ($185,000) and an SBA 7(a) loan covers the remainder including the franchise fee, signage, technology, and working capital. The operator opens within four months of signing the franchise agreement.
The total initial investment for an Arby's franchise ranges from approximately $628,000 to $2.4 million depending on location type, market, real estate costs, and whether you are building new or converting an existing structure. This includes the $37,500 franchise fee, construction, equipment, signage, technology, inventory, pre-opening marketing, training, and working capital reserves.
Arby's Restaurant Group requires prospective franchisees to demonstrate a minimum net worth of $500,000 and liquid assets of at least $250,000. Lenders independently verify these figures during the underwriting process. Having a higher net worth and more liquid assets generally improves your loan terms and approval odds.
Yes. Arby's is listed in the SBA Franchise Registry, which means SBA lenders can verify franchise eligibility quickly and efficiently. Both the SBA 7(a) and SBA 504 programs are available for Arby's franchise financing. SBA 7(a) loans are the most commonly used for franchise startups and acquisitions, while SBA 504 loans are preferred when real estate purchase is a major component of the project.
Arby's franchisees pay an ongoing royalty fee of approximately 4% of gross sales plus a national advertising contribution of approximately 4.2% of gross sales. These ongoing fees total roughly 8.2% of revenue and must be factored into your cash flow projections and debt service coverage ratio calculations when applying for franchise financing.
SBA franchise loan approvals typically take 60-120 days from application to funding. Conventional bank loans can close in 45-90 days. Equipment-only financing can often close in 1-3 weeks. Preparing a complete application package from the start is the most effective way to minimize delays, as incomplete documentation is the most common cause of extended timelines.
Most SBA lenders require a minimum personal credit score of 650-680 for franchise loan eligibility. Conventional lenders generally prefer 700 or higher. Scores above 720 typically qualify for the most favorable interest rates. If your score is below the minimum threshold, working with a specialist lender or improving your credit profile before applying may help.
Standard required documents include three years of personal tax returns, personal financial statement, business plan with five-year financial projections, the Franchise Disclosure Document, signed Franchise Agreement, real estate lease or letter of intent, construction cost estimates, equipment quotes, and a resume demonstrating relevant food service or business management experience. Existing business owners should also provide three years of business tax returns and recent financial statements.
Arby's has experienced a sustained period of growth and menu innovation under Inspire Brands. Average unit volumes have increased significantly over the past decade, and the brand has maintained strong same-store sales growth even during challenging economic periods. However, individual location profitability depends heavily on site selection, management quality, local competition, and market demographics. Reviewing Item 19 of the FDD and speaking with existing franchisees is essential before making a final investment decision.
Arby's prefers franchisees with restaurant or multi-unit business management experience, but first-time franchise investors with strong general business credentials can qualify. Lenders may require a larger equity contribution or additional collateral from applicants without food service backgrounds. Partnering with an experienced general manager during the opening period can also strengthen your application by demonstrating operational expertise.
SBA franchise loans typically require an equity injection of 10%-20% of the total project cost. On a $1 million project, that means $100,000 to $200,000 of personal capital. Conventional lenders generally require 20%-30%. Your equity can come from personal savings, retirement account rollovers (using a ROBS structure), equity from other owned real estate, or gifts from family members under certain circumstances.
Arby's franchise cost is generally more accessible than many tier-one QSR brands. The initial investment range of $628,000 to $2.4 million is lower than McDonald's ($1.4M to $2.5M) or Taco Bell ($1.5M to $3.5M), while the Inspire Brands infrastructure provides comparable operational support. For investors seeking a strong national brand with a lower entry cost threshold, Arby's represents a competitive option within the QSR landscape.
Yes. A Rollover for Business Startups (ROBS) structure allows you to use 401(k) or IRA funds as equity for franchise investment without triggering early withdrawal penalties or income taxes. ROBS is an IRS-recognized strategy that many franchise investors use to access retirement assets for business purposes. The structure requires careful implementation with a qualified ERISA attorney and ongoing compliance administration.
SBA 7(a) franchise loan interest rates are typically prime rate plus 2.25% to 4.75% depending on loan size and term. As of mid-2026, with the prime rate near 8.5%, qualified franchisees are seeing rates of approximately 10.75% to 13.25%. Equipment loan rates typically range from 7% to 12%. Conventional lenders may offer lower rates for borrowers with strong balance sheets and extensive collateral.
Arby's and Inspire Brands provide franchisees with comprehensive pre-opening training, a dedicated franchise business consultant, supply chain management and vendor relationships, national marketing campaigns funded by the advertising contribution, technology platform support, and ongoing operational guidance. This franchisor infrastructure is a key factor in why lenders view Arby's franchise loans favorably.
Crestmont Capital, the #1 rated business lender in the U.S., specializes in franchise financing for QSR brands including Arby's. Our advisors help you select the right loan products, prepare a compelling application, and navigate the underwriting process from start to close. We offer SBA loans, conventional financing, equipment loans, and working capital products to meet every stage of your franchise journey.
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Apply Now →Securing an Arby's franchise loan is a substantial undertaking, but the combination of Arby's proven brand, Inspire Brands' operational infrastructure, and the availability of SBA and conventional financing options makes it achievable for qualified investors. Understanding Arby's franchise cost, building a complete financial profile, and working with an experienced franchise lender are the three pillars of a successful franchise financing strategy.
Whether you are a first-time franchisee with strong industry experience or an established multi-unit operator expanding your QSR portfolio, the right capital structure can be the difference between a challenging launch and a confident one. Crestmont Capital's franchise financing specialists are here to help you navigate every step of the process.
To explore your options and start building your financing plan, apply now at Crestmont Capital or contact our team directly to discuss your Arby's franchise loan needs.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.