Opening an Arby's franchise is one of the most attractive opportunities in the fast food industry. With more than 3,500 locations across the United States and a brand that has served roast beef sandwiches since 1964, Arby's offers franchisees a proven business model, strong brand recognition, and robust corporate support. However, getting your doors open requires significant upfront capital - and that is where an Arby's franchise loan becomes essential.
Whether you are a first-time franchisee or an experienced operator expanding your portfolio, understanding your financing options is the critical first step. This guide breaks down everything you need to know about financing an Arby's franchise, from total startup costs to the best loan programs available to you in 2026.
In This Article
An Arby's franchise loan is any form of business financing used to cover the costs of opening, operating, or expanding an Arby's restaurant location. These loans can be used for the franchise fee, real estate, construction, kitchen equipment, signage, technology systems, and working capital to cover expenses during the ramp-up period after opening.
Franchise financing is a well-established category in commercial lending. Because you are buying into a recognized brand with an existing operational framework and proven unit economics, lenders view franchise businesses as lower risk than independent startups. This means franchisees often have access to better loan terms, higher approval rates, and more favorable interest rates compared to non-franchise business owners.
The most common financing structures for an Arby's franchise loan include SBA 7(a) loans, SBA 504 loans, conventional business term loans, equipment financing, and business lines of credit. Many franchisees use a combination of these to cover different aspects of their startup or expansion costs.
Industry Insight: According to the U.S. Small Business Administration, franchise businesses have historically outperformed independent startups in loan repayment rates, making SBA-backed franchise loans one of the most accessible financing options in the industry.
Arby's is the second-largest fast food sandwich chain in the United States by number of locations. The brand is known for its roast beef sandwiches, curly fries, and "We Have the Meats" positioning that differentiates it clearly from burger-focused competitors. From a lender's perspective, Arby's checks several key boxes that make franchise financing approvals more straightforward.
Arby's is part of Inspire Brands, a multi-brand restaurant company that also owns Buffalo Wild Wings, Sonic, Jimmy John's, and Dunkin'. This corporate parent provides Arby's franchisees with significant resources including national marketing support, supply chain advantages, and ongoing operational training - all of which reduce the operational risk that lenders evaluate when underwriting a loan.
The brand's average unit volume (AUV) has historically ranged between $1.2 million and $1.5 million per year, which gives lenders confidence that a typical Arby's location generates sufficient cash flow to service debt. Lenders specifically look at the Debt Service Coverage Ratio (DSCR) when evaluating franchise loan applications, and established franchises like Arby's typically produce the revenue projections needed to meet minimum DSCR requirements.
Key Fact: CNBC's small business research consistently ranks franchise businesses among the most bankable investment categories for commercial lenders because of brand recognition, proven systems, and predictable cash flow patterns.
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Apply Now ->Before applying for any financing, you need to understand exactly how much capital you are looking at. Arby's publishes detailed cost disclosures in its Franchise Disclosure Document (FDD), which lenders will also review during underwriting. Here is a breakdown of typical startup costs for a new Arby's franchise location in 2026:
| Cost Category | Estimated Range | Notes |
|---|---|---|
| Initial Franchise Fee | $37,500 - $45,000 | Per location |
| Real Estate / Leasehold | $250,000 - $1,500,000 | Build or lease depending on location |
| Construction / Renovation | $400,000 - $1,200,000 | New build vs. conversion |
| Kitchen Equipment | $150,000 - $350,000 | Ovens, fryers, slicers, POS |
| Signage and Decor | $30,000 - $80,000 | Interior and exterior brand compliance |
| Working Capital Reserve | $50,000 - $150,000 | First 3-6 months of operations |
| Training and Pre-Opening | $25,000 - $60,000 | Staff training, inventory, grand opening |
| Total Investment Range | $942,500 - $3,385,000 | Varies by market and format |
Most lenders expect franchisees to bring a minimum of 20-30% of the total project cost as a down payment or equity injection. This means you may need between $200,000 and $700,000 in liquid capital before approaching a lender, depending on your total project size. Arby's also requires franchisees to demonstrate a minimum net worth of approximately $500,000 with $200,000 in liquid assets, though these requirements can vary.
There is no single "Arby's franchise loan" product - instead, successful franchisees typically layer multiple financing tools to cover different capital needs. Here are the primary financing options available in 2026:
The SBA 7(a) program is the most popular financing tool for franchise purchases. These government-backed loans offer amounts up to $5 million, terms up to 10 years for working capital or 25 years for real estate, and competitive interest rates tied to the prime rate. Because the SBA guarantees a portion of the loan, lenders are more willing to approve franchise applicants who might not qualify for conventional financing.
SBA 504 loans are specifically designed for the purchase of fixed assets - real estate and major equipment. If you are buying the land or building that will house your Arby's location, a 504 loan can finance up to 40% of the project cost at a below-market fixed rate, with a Certified Development Company (CDC) acting as co-lender. These loans are structured as long-term, low-rate financing for capital-intensive purchases.
Conventional loans from commercial banks or private lenders typically offer faster approval timelines and more flexible underwriting than SBA programs. While rates may be slightly higher and terms shorter, they can be the right fit if you have strong credit, significant collateral, and an established track record as a franchise operator. Small business loans from direct lenders like Crestmont Capital can often fund faster than traditional bank or SBA routes.
Kitchen equipment is one of the largest upfront costs in any fast food franchise. Equipment financing allows you to purchase fryers, ovens, roast beef slicers, refrigeration units, POS systems, and drive-through technology without tying up your working capital. The equipment itself serves as collateral, which typically results in more favorable approval terms even for newer operators.
A revolving business line of credit is invaluable for managing the cash flow fluctuations that come with restaurant operations. Seasonal slowdowns, unexpected equipment repairs, bulk inventory purchases - all of these are situations where a line of credit gives you the flexibility to handle costs without disrupting day-to-day operations.
Short-term working capital loans can bridge the gap between when you open your doors and when your location reaches operational profitability. Most fast food franchises take 6-18 months to stabilize their revenue. Having dedicated working capital financing ensures you can cover payroll, supplies, and rent during that critical early period.
By the Numbers
Arby's Franchise Financing - Key Statistics
3,500+
Arby's locations across the U.S.
$1.3M+
Average annual unit volume per location
$5M
Maximum SBA 7(a) loan amount
25 Yrs
Maximum SBA loan term for real estate
SBA-backed financing is the gold standard for franchise loans because it offers the most favorable terms available outside of direct corporate financing programs. The two primary SBA programs for Arby's franchisees are the 7(a) and 504 programs.
The SBA 7(a) loan is the most flexible option. It can be used for virtually any business purpose - franchise fees, equipment, working capital, real estate, and construction. Loan amounts go up to $5 million with repayment terms up to 10 years for working capital and 25 years for real estate. Interest rates are variable, tied to the prime rate plus a lender spread, and the SBA caps rates to protect borrowers from excessive pricing.
To qualify for SBA franchise financing, lenders will evaluate your personal credit score (typically 680+ is preferred), your net worth and liquid assets, any prior franchise or restaurant management experience, and the projected cash flow of your Arby's location. The SBA also reviews the franchisor directly - Arby's is an SBA-approved franchise, which streamlines the approval process significantly.
The SBA 504 program pairs with a conventional lender to finance up to 90% of a real estate or equipment purchase. If you are buying land and building a new Arby's location, a 504 loan structured as 50% conventional bank loan, 40% SBA/CDC loan, and 10% borrower equity injection is one of the most capital-efficient structures available. The fixed below-market rate on the 40% CDC portion makes the blended cost of capital very attractive for long-term real estate investments.
According to SBA.gov, franchise businesses are among the most consistently approved loan categories because they offer lenders the combination of brand equity, operational training support, and institutional supply chain relationships that reduce underwriting risk compared to independent startups.
A commercial fast food kitchen is one of the most equipment-intensive environments in the restaurant industry. Arby's locations require specialized equipment that goes beyond a standard restaurant setup - including roast beef ovens, meat slicers calibrated to Arby's specifications, proprietary cheese sauce dispensers, high-volume fryers for curly fries and potato cakes, commercial refrigeration, and integrated POS and drive-through technology systems.
Equipment financing allows you to acquire all of this equipment while preserving your working capital. Rather than paying $300,000 or more upfront for a fully equipped kitchen, you can structure an equipment loan or lease that spreads that cost over 3-7 years. The equipment itself serves as collateral, which means equipment financing typically has simpler approval requirements than unsecured business loans.
For Arby's franchisees specifically, lenders familiar with franchise equipment loans understand the asset value of commercial kitchen equipment and are often willing to finance up to 100% of the equipment cost - especially for newer equipment from recognized manufacturers. Used or refurbished equipment may require a 10-20% down payment depending on the lender.
A separate equipment financing line also keeps your primary loan clean and organized, making it easier to upgrade or add equipment in the future without refinancing your entire loan package. If you need to replace a fryer bank after five years, you can simply finance the replacement equipment without touching your core business loan.
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Get Equipment Financing ->Even with solid SBA financing in place, most new Arby's locations will experience a revenue ramp-up period of several months before reaching their target unit volumes. During this time, you need sufficient working capital to cover ongoing operating expenses - payroll, food costs, utilities, rent, royalty fees, and marketing contributions - while your customer base builds.
Working capital loans provide exactly this buffer. Unlike equipment or real estate loans that are tied to specific assets, working capital loans give you flexible funds to deploy wherever your business needs them most. Terms typically range from 6 months to 3 years, with daily or weekly repayment structures that align with restaurant cash flow patterns.
For Arby's franchisees who are expanding rather than opening their first location, working capital loans can also fund bridge costs during a renovation or remodeling period. Arby's periodically requires franchisees to update locations to meet new brand standards, and a short-term working capital loan can cover construction costs without disrupting daily operations at adjacent locations.
Many restaurant operators also use a fast business loan to take advantage of bulk purchasing opportunities - buying food inventory, paper goods, or supplies at a discount when pricing is favorable. This type of opportunistic capital deployment can meaningfully improve margins at a single location or across a multi-unit portfolio.
Crestmont Capital is a direct lender rated number one in the United States, and franchise financing is one of our core specialties. We understand that fast food franchise operators have specific capital needs that do not fit neatly into standard business loan boxes - and we have built our products to address exactly that.
When you work with Crestmont Capital on an Arby's franchise loan, we start by reviewing your complete financial picture: your personal credit profile, available capital, franchise experience, and the projected performance of your location. We then structure a financing package designed to cover your full capital needs efficiently - which often means combining an equipment loan, a term loan for construction or leasehold improvements, and a working capital line into a single coordinated funding plan.
Our team has experience working with franchise operators across the fast food and quick service restaurant (QSR) sector. We understand Arby's brand requirements, the typical cost structures for new builds versus conversions, and the cash flow dynamics of multi-unit franchise operations. This industry knowledge means we can underwrite your loan faster and more accurately than a general business lender who has never worked with a QSR franchise before.
We also offer financing solutions for operators who may not qualify for traditional SBA or bank programs - including restaurant business loans with more flexible credit requirements, revenue-based financing for established locations, and same-day funding options when you need capital quickly to close on a lease or equipment purchase.
Franchise Operator Tip: If you are acquiring an existing Arby's location from another franchisee, the financing structure differs from a new build. An acquisition loan focuses on the purchase price of the business (including goodwill, equipment, and existing lease), and lenders will evaluate the location's trailing 12-24 months of revenue performance as a key underwriting input. Crestmont Capital offers dedicated SBA loans and conventional acquisition financing for franchise transfers.
Lenders evaluate franchise loan applications using a combination of personal financial factors and business-specific metrics. Understanding what lenders look for helps you prepare a stronger application and avoid common pitfalls that slow down or derail the approval process.
Most SBA lenders require a minimum personal credit score of 650-680 for franchise financing. Conventional business lenders may accept scores as low as 600 for certain loan types, while premium terms are typically reserved for scores above 700. If your score needs improvement, addressing outstanding collections, reducing credit card utilization, and resolving any derogatory marks before applying can meaningfully improve your approval odds and your interest rate.
Arby's corporate requires franchisees to have a minimum net worth of approximately $500,000 with $200,000 in liquid assets. Lenders will independently verify these requirements through personal financial statements. Your liquid assets - cash, savings, marketable securities - demonstrate your ability to make the required equity injection and cover early operating costs without relying entirely on borrowed funds.
Prior restaurant management or franchise ownership experience is a significant positive factor in franchise loan underwriting. Lenders want to see that you have the operational skills to run a complex food service business. If you are new to the restaurant industry, consider partnering with an experienced operator or hiring a seasoned general manager as part of your application - this can substantially improve your approval prospects.
A well-constructed business plan with realistic financial projections is essential for any franchise loan above $500,000. Your projections should include revenue ramp-up assumptions, food and labor cost percentages based on Arby's system averages, debt service calculations, and a detailed startup budget. Lenders use these projections to calculate your expected DSCR and assess whether your projected cash flow can service the proposed debt load.
SBA loans require borrowers to pledge available collateral, which can include personal real estate, business assets, equipment, and inventory. Lenders understand that franchise startups may have limited collateral in the early stages, and insufficient collateral alone will not automatically disqualify you - but strong personal financial statements can compensate for a limited collateral profile.
According to a Forbes analysis of franchise financing, the most successful franchise loan applicants prepare their financial documentation at least 90 days before they plan to apply - giving themselves time to address any credit issues, organize their personal financial statements, and build a compelling business plan narrative.
Maria has spent 10 years managing fast food locations for another QSR brand and has saved $400,000 in capital. She wants to open her first Arby's location in a suburban market. Her total project cost is $1.8 million, including land, construction, equipment, and working capital. She approaches Crestmont Capital and qualifies for an SBA 7(a) loan of $1.44 million, bringing her 20% equity injection of $360,000. Her combined equipment financing handles the $280,000 kitchen build-out, and a separate working capital line of $75,000 covers her first-year operational costs. Maria opens on time and within budget.
David already operates three fast food franchise locations in the Midwest. When an Arby's franchisee in his market decides to retire, David sees the opportunity to acquire the location - which has consistent revenues of $1.4 million annually. The acquisition price is $850,000. Because David has an established operating history, Crestmont Capital structures a conventional acquisition loan rather than going the SBA route, allowing him to close in 30 days rather than the typical 60-90 day SBA timeline. David takes ownership of a profitable location without a lengthy underwriting process.
Jennifer owns two Arby's locations that are due for a brand refresh remodel per her franchise agreement. Each location requires approximately $180,000 in renovations. Rather than draining her cash reserves, she secures a working capital loan of $360,000 from Crestmont Capital, completing both remodels simultaneously to minimize disruption. The improved interiors boost average check size and customer dwell time at both locations.
Carlos wants to add a dedicated drive-through lane to an existing Arby's location that currently operates as dine-in only. The drive-through equipment, technology systems, and structural modifications total $225,000. An equipment financing loan with a 5-year term allows Carlos to add the revenue-generating drive-through lane without a large cash outlay, with monthly payments funded directly by the incremental revenue the drive-through channel produces.
Thomas is purchasing a commercial property to house a new Arby's location. The property costs $1.2 million and construction adds $600,000 to the total project. Using an SBA 504 structure, a conventional lender covers 50% ($900,000), the CDC covers 40% ($720,000) at a fixed rate, and Thomas contributes 10% ($180,000) as his equity injection. The blended interest rate on his total debt is significantly below what a conventional-only loan would cost, and the 20-year fixed term on the CDC portion provides long-term payment stability.
Sandra operates two Arby's locations in a vacation-destination market. Her revenues peak in summer and dip in winter. Rather than cutting staff during slower months, she uses a short-term working capital loan each winter to maintain her team and keep her locations fully staffed - ensuring she is operationally ready when summer traffic surges. The fast approval timeline from Crestmont Capital means she can access funds within days of applying, not weeks.
Find the Right Financing for Your Arby's Franchise
Whether you are opening your first location or expanding a multi-unit portfolio, Crestmont Capital has a lending solution built for franchise operators.
Start Your Application ->Financing an Arby's franchise requires thoughtful planning and the right lending partner. With total investment costs ranging from just under $1 million to over $3 million depending on your location and format, most franchisees rely on a combination of SBA loans, equipment financing, and working capital solutions to cover their full capital needs. The good news is that Arby's brand strength, its affiliation with Inspire Brands, and its consistent unit economics make it one of the more financeable QSR franchises on the market.
The key to securing the best arbys franchise loan terms is preparation: strong personal credit, documented liquid assets, relevant operating experience, and a detailed business plan with realistic projections. When these elements are in place, lenders can move quickly and confidently to fund your franchise project.
Crestmont Capital specializes in franchise financing and works with fast food operators at every stage - from first-time franchisees opening their initial location to experienced multi-unit operators building a larger portfolio. Apply today and get matched with a franchise lending specialist who understands your business and your goals.
Most SBA lenders require a minimum personal credit score of 650-680 for franchise financing. Conventional business lenders may work with scores as low as 600 for certain loan products. Borrowers with scores above 700 typically receive the most favorable rates and terms. If your score needs improvement, addressing outstanding collections and reducing credit utilization before applying can meaningfully improve your approval odds.
Total investment for a new Arby's location typically ranges from $942,500 to $3,385,000 depending on your market, whether you are building new or converting an existing space, and real estate costs in your area. The initial franchise fee alone ranges from $37,500 to $45,000 per location. Arby's also requires franchisees to have a minimum net worth of approximately $500,000 with $200,000 in liquid assets.
Yes. Arby's is an SBA-approved franchise, which means SBA 7(a) and SBA 504 loans are available to qualified Arby's franchisees. SBA 7(a) loans offer up to $5 million for any business purpose including franchise fees, equipment, construction, and working capital. SBA 504 loans are specifically designed for real estate and major equipment purchases. The SBA approval status of the Arby's brand streamlines the underwriting process significantly.
SBA loan approval timelines typically range from 60 to 90 days from application submission to funding. Conventional business loans from direct lenders like Crestmont Capital can approve and fund significantly faster - often within 2-4 weeks. Equipment financing decisions can be made in as little as 24-72 hours. If you have a time-sensitive opportunity such as an acquisition or lease signing deadline, a direct lender's faster timeline may be the priority.
Prior restaurant or franchise management experience is not a strict requirement, but it is a significant positive factor in lender underwriting. Applicants with no direct restaurant experience may compensate by partnering with an experienced operator, hiring a qualified general manager, or demonstrating strong general business management experience in other industries. Arby's also requires franchisees to complete its training program, which lenders view positively as evidence of operational support.
Most lenders require a down payment or equity injection of 20-30% of the total project cost. For SBA 7(a) loans, the minimum equity injection is typically 10%, though lenders frequently require more for franchise startups without an established operating history. For SBA 504 loans, the borrower contributes 10% and the structure is designed to maximize the financed portion. Equipment-only financing may require as little as 0% down if you have strong credit and the equipment is new.
Yes, franchise acquisitions are financeable through both SBA and conventional business loans. Acquisition financing evaluates the purchase price of the business including equipment, goodwill, and the existing lease, as well as the location's trailing revenue performance. Because you are buying an established, revenue-generating business rather than a startup, acquisition loans often have a slightly different underwriting profile and can sometimes close faster than new-build financing.
Standard documentation for a franchise loan application includes: personal tax returns for the past 2-3 years, personal financial statement (net worth, assets, liabilities), business tax returns if you own other businesses, the franchise disclosure document (FDD) and signed franchise agreement, a business plan with financial projections, construction or renovation bids if applicable, equipment quotes, and a site lease or purchase agreement. Having these documents organized before you apply significantly speeds up the underwriting process.
Interest rates on franchise loans vary by loan type, lender, and borrower profile. SBA 7(a) loans are variable rate, tied to the prime rate plus a lender spread capped by the SBA. In 2026, total rates for franchise loans generally range from 7% to 12% depending on term length and credit profile. Conventional business loans may carry rates starting around 8-10% for strong applicants. Equipment financing rates typically range from 6% to 15%. Your specific rate will be determined by your credit score, collateral position, and overall financial profile.
There is no fixed limit on how many Arby's locations you can finance, but lenders evaluate your total debt load and your capacity to service all obligations simultaneously. Multi-unit franchisees who can demonstrate strong performance at existing locations are often better positioned to secure financing for additional units. Arby's corporate may also have requirements around the pace of multi-unit development in its franchise agreements. Experienced multi-unit operators often work with lenders to set up portfolio financing structures that accommodate multiple locations efficiently.
Equipment financing is typically the better choice for purchasing kitchen equipment because the equipment itself serves as collateral, which simplifies underwriting and often results in faster approval. Equipment loans preserve your general working capital line for operational flexibility. A term loan can also work but generally requires a broader credit evaluation and may take longer to approve. For equipment purchases over $100,000, most fast food operators use dedicated equipment financing to maintain clean separation between their capital categories.
Yes, remodel financing is a common use case for existing franchise operators. Arby's periodically requires franchisees to complete brand refresh remodels as part of their franchise agreements. Remodel costs typically range from $100,000 to $400,000 per location depending on the scope of work. Working capital loans, term loans, and equipment financing can all be used for remodel projects. Lenders will evaluate the profitability of your existing location and your ability to service the remodel debt based on current revenues.
SBA 7(a) loans are the most flexible option - they can be used for any legitimate business purpose including franchise fees, working capital, equipment, and real estate. They are funded by a single lender with an SBA guarantee. SBA 504 loans are specifically for fixed assets (real estate and major equipment) and are structured as a split between a conventional lender (50%), a Certified Development Company (40%), and borrower equity (10%). The 504 program offers a fixed, below-market rate on the CDC portion, making it particularly attractive for major real estate purchases.
As of 2026, Arby's Restaurant Group does not typically offer direct in-house financing to franchisees in the same way some smaller franchise systems do. However, as part of the Inspire Brands family, Arby's franchisees may have access to preferred lender relationships and SBA-expedited processing channels through the franchisor's network. Franchisees should check directly with Arby's franchising team for any current preferred lender programs or financing incentives available to new franchise applicants.
Crestmont Capital is a direct lender, which means we make our own credit decisions rather than routing applications through a committee at a traditional bank. This results in faster approvals, more flexible underwriting criteria, and a more personalized experience for franchise operators. Traditional banks often have rigid minimum requirements and long approval timelines. Crestmont Capital can typically approve franchise loans in days to weeks rather than the months that bank or SBA timelines often require, while still offering competitive rates for qualified borrowers.
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.