How much does an Arby’s franchise cost?
Arby’s Franchisor, LLC discloses an estimated initial investment of $868,550 to $2,456,600 for a leased Free-Standing Restaurant and $651,550 to $1,379,600 for a leased Non-Free-Standing Restaurant. These are the two premises-based ranges in the Arby’s 2026 Franchise Disclosure Document, issued March 26, 2026. Both totals include pre-opening costs and three months of Working Capital / Additional Funds, but exclude the purchase of real estate and financing costs. The FDD cover states that $12,500 to $56,300 of the total must be paid to the franchisor or an affiliate.
Data basis. Legal franchisor: Arby’s Franchisor, LLC. Document: 2026 Arby’s Franchise Disclosure Document, issued March 26, 2026. Cost sections reviewed: Item 5, pages 21–23; Item 6, pages 23–31; Item 7, pages 31–35; plus cost-relevant provisions in Items 8, 10, 11, and 17. Applicable Item 7 columns: leased Free-Standing and leased Non-Free-Standing Restaurants. Information checked July 14, 2026.
The official Arby’s franchise information page also identifies the March 26, 2026 FDD, current financial qualifications, and headline fee figures. No matching public copy of the 2026 FDD was verified on a franchise-controlled website, so FDD references in this article are cited by Item and page without a document link.
Non-Free-Standing leased premises: $651,550–$1,379,600. The Free-Standing estimate does not cover constructing a new building from the ground up; its disclosed scenarios run from a landlord-funded build-to-suit at the low end to conversion work largely funded by the franchisee at the high end. Source: 2026 FDD, Item 7, pages 31–35.
Do the two Item 7 ranges match Arby’s legal restaurant formats?
Not exactly. The 2026 FDD defines the franchise offer as Traditional Restaurants and Non-Traditional Restaurants, while Item 7 organizes construction estimates by leased Free-Standing and leased Non-Free-Standing premises. Those labels describe different dimensions of the deal and should not be treated as interchangeable.
Two classification systems affect the cost analysis
Franchise Agreement format
Traditional Restaurant generally means a full-menu, limited-service Arby’s Restaurant. Non-Traditional Restaurant generally means a smaller, limited-menu or reduced-service operation in a captive or institutional venue. The Initial Franchise Fee and Royalty Fee differ between these legal formats. Source: 2026 FDD, Item 1, pages 1–2; Items 5–6, pages 21–31.
Item 7 premises format
Free-Standing and Non-Free-Standing are the two leased-premises columns used for the investment estimate. The Non-Free-Standing column covers examples such as inline, end-cap with drive-thru, truck stop, travel plaza, and convenience-store sites. Source: 2026 FDD, Item 7, pages 31–33.
The official franchise page describes Free Standing, Endcap, and Small Format concepts, but the 2026 FDD does not publish a separate Item 7 total for every marketing concept. A buyer should obtain written confirmation of which Item 7 column and which Franchise Agreement amendment apply to the proposed site before using either range as a capital plan.
How do the Free-Standing and Non-Free-Standing ranges compare?
The Free-Standing range has both the higher minimum and the higher maximum. The difference is concentrated in site work, professional and permitting costs, building costs, and signage or drive-thru requirements. Equipment and several pre-opening categories use the same ranges for both premises types.
Scale runs from $0 to the highest disclosed total, $2,456,600.
Interpretation: the disclosed maximum for Free-Standing leased premises is $1,077,000 above the Non-Free-Standing maximum. This is a derived comparison of official endpoints, not an Arby’s estimate of a typical project. Source: 2026 FDD, Item 7, pages 31–33.
What is included in each total?
The four phase totals below reconcile exactly to the official Item 7 endpoints. They are useful for seeing where the capital is allocated without creating an average or selecting a point inside any range.
| Item 7 phase | Free-Standing leased | Non-Free-Standing leased |
|---|---|---|
| Development & Franchise Fees / Training | $16,250–$75,000 | $16,250–$75,000 |
| Site and Real Estate, excluding purchase | $12,000–$546,000 | $12,000–$54,000 |
| Building / Construction / Equipment | $753,000–$1,617,400 | $536,000–$1,032,400 |
| Pre-Opening / Operating Deposits | $87,300–$218,200 | $87,300–$218,200 |
| Total Estimated Initial Investment | $868,550–$2,456,600 | $651,550–$1,379,600 |
Source: 2026 FDD, Item 7, pages 31–33. Totals exclude purchase of the premises.
Which construction categories create the largest format differences?
Site Costs and Building Costs produce the widest dollar gaps between the two premises columns. Equipment is the same $225,000 to $325,000 range in both columns, but site preparation and building work depend heavily on the premises and landlord contribution.
| Cost category | Free-Standing leased | Non-Free-Standing leased | What drives variation |
|---|---|---|---|
| Site Costs | $0–$451,000 | $0–$4,000 | Grading, utilities, drainage, engineering, and site conditions. |
| Landscaping | $0–$45,000 | Not applicable | Site and facility type. |
| Civil & Architectural Drawings / Professional Fees | $40,000–$152,400 | $6,000–$67,400 | Plan adaptation and local design requirements. |
| Zoning / Permitting Costs | $1,000–$112,000 | $1,000–$18,000 | Municipal, county, and state requirements. |
| Building Costs | $400,000–$850,000 | $236,000–$500,000 | Geography, size, conversion scope, and local construction rules. |
| Equipment | $225,000–$325,000 | $225,000–$325,000 | Supplier pricing; estimate includes freight and installation, not tax. |
| Computer Hardware and Software / POS | $32,000–$55,000 | $32,000–$42,000 | Approved hardware, software, network, and support configuration. |
| Décor Package | $11,000–$35,000 | $11,000–$35,000 | Seat count and the mix of approved tables, chairs, booths, fixtures, and finishes. |
| Signage & Drive-Thru | $44,000–$88,000 | $25,000–$45,000 | Site, facility type, drive-thru package, and optional enhancements. |
Source: 2026 FDD, Item 7, pages 31–35.
What pre-opening and working-capital amounts are inside Item 7?
- Lease Deposits and Payments
- $12,000–$50,000, generally due at lease signing or before opening.
- Fees and Expenses During Training
- $10,000–$25,000, including applicable training charges and trainee travel-related expenses.
- Pre-Opening Wages
- $21,300–$41,200. The estimate assumes management and hourly hiring before opening.
- Opening Inventory
- $18,000–$26,000, varying by facility type.
- Insurance
- $10,000–$16,000; the full premium is typically paid in advance.
- Working Capital / Additional Funds
- $33,000–$100,000 for three months of initial operations, including Restaurant management salaries except items separately listed in Item 7.
- First month’s Rent
- $4,000–$10,000; common-area maintenance, real estate taxes, and landlord insurance beyond that amount are not estimated.
- Licenses, Health Permits, Utility Deposits
- $1,000–$25,000.
The Additional Funds line is already part of the total investment. The 2026 FDD does not separately identify owner compensation, and it warns that a franchisee may need more working capital during the first three months or for a longer period. Source: 2026 FDD, Item 7, pages 32–35.
When is the money paid?
The first franchisor payment is the Development Fee when the Development Agreement is signed. Arby’s estimates 90 to 540 calendar days between that first payment and opening, with site control, permits, construction, equipment installation, hiring, and training determining the timing. Source: 2026 FDD, Items 5 and 11, pages 21 and 44.
Sign the Development Agreement
Pay the applicable non-refundable Development Fee. Under the standard Traditional offer it is $12,500 per Restaurant; the standard Non-Traditional offer lists $0. The fee is not credited against the Initial Franchise Fee.
Sign the Franchise Agreement for the Restaurant
Pay any Initial Franchise Fee on the earlier of 90 calendar days before opening or the start of construction. The standard fees are $37,500 for a Traditional Restaurant and $18,750 for a Non-Traditional Restaurant, before applicable incentives.
Secure the premises and fund the project
Lease deposits are generally due at lease signing or before opening. Site, design, permitting, construction, equipment, décor, technology, and signage payments are made as arranged or incurred with landlords, contractors, and approved vendors.
Fund training, staffing, inventory, insurance, and permits
These costs arise before opening. Item 7 assumes pre-opening wages, opening inventory, insurance, first month’s rent, licenses, health permits, and utility deposits.
Retain three months of Additional Funds
The $33,000 to $100,000 Working Capital / Additional Funds range is used as operating expenses arise after opening. It is not a separate surcharge on top of the Item 7 total.
Can the Initial Franchise Fee or early Royalty Fee be reduced?
Yes, but every reduction is conditional. The 2026 FDD lists several incentive programs, most of which apply only to qualifying Traditional Restaurants and require compliance with the Development Agreement, approved design and location requirements, opening deadlines, and post-opening cost reporting.
| Offer or program | Development Fee | Initial Franchise Fee | Important condition or credit |
|---|---|---|---|
| Standard Traditional Restaurant | $12,500 | $37,500 | Applies when no fee incentive applies. |
| Non-Traditional Restaurant | $0 | $18,750 | Separate 6.2% Royalty Fee structure. |
| Standard incentive | $12,500 | $0 | Qualifying new or reopened Traditional Restaurant; includes a $7,500 Royalty Fee credit and reduced fee schedule. |
| Relocation incentive | Waived | Waived | Qualifying Traditional Restaurant relocation; may include a $50,000 Royalty Fee credit if opened by December 31, 2028. |
Source: 2026 FDD, Items 5–6, pages 21–30. The FDD states that current initial-fee programs generally remain available through March 31, 2027 unless modified or eliminated.
- Initial training charge
- Currently $2,100 per additional attendee, with a mid-2026 increase to $4,000 per attendee expected in the FDD. The fee is waived for two approved trainees for the first Restaurant, while the franchisee pays all travel, room, board, and compensation costs.
- Optional site layout
- $1,200 for a Preliminary Site Layout for a new or remodeling drive-thru Restaurant.
- Optional kitchen layout
- $1,200 for a Preliminary Kitchen Layout for a new Restaurant or $750 for a remodeling Restaurant.
Percentage of Gross Sales for a qualifying Traditional Restaurant; 4% is the standard rate after the incentive ramp.
Interpretation: this is a conditional incentive schedule, not the ordinary rate for every Arby’s Restaurant. The standard Royalty Fee is 4% of Gross Sales for Traditional Restaurants and 6.2% for Non-Traditional Restaurants. The FDD also contains a separate conditional extension that may reduce the rate to 2% in Years 6–10 when specified reporting and compliance tests are met. Source: 2026 FDD, Item 6, pages 27–28.
- Standard advertising discount: qualifying Restaurants receive a 75% discount from standard Advertising and Marketing Service Fee dues through Year 3 and a 50% discount in Year 4, subject to a current minimum fee of 0.85% of Gross Sales. Standard dues resume in Year 5, and required Co-op contributions are not reduced.
- Relocation Royalty Fee schedule: a qualifying relocation pays 1% of Gross Sales in Year 1, 2% in Year 2, 3% in Year 3, and 4% from Year 4 through the remainder of the term.
- Early Opening Incentive: a qualifying Standard-incentive Traditional Restaurant may pay a 0% Royalty Fee from opening until its required opening date, for up to six months.
- VetFran Program: an eligible first-time veteran or returning service member may receive a $10,000 Royalty Fee credit per qualifying Traditional Restaurant, up to $100,000.
- Pioneer Incentive: the first qualifying developer committing to at least two new Traditional Restaurants in Connecticut, the District of Columbia, Hawaii, Massachusetts, New Hampshire, Rhode Island, or Vermont may receive a $50,000 Royalty Fee credit for each of the first two Restaurants.
- Failure to satisfy conditions: a waived Initial Franchise Fee or reduced fee schedule can be lost. For the Standard incentive, the FDD states that the $37,500 Initial Franchise Fee can become due after written notice if the conditions are not met.
Which Arby’s fees continue after the Restaurant opens?
The core continuing charges are the Royalty Fee and the advertising obligations. Technology support, training, optional digital-ordering services, and event-driven charges can add separate obligations. Percentage fees should be read only on the Gross Sales basis defined in the Franchise Agreement; the FDD does not convert them into annual dollar amounts.
| Fee or obligation | Amount or basis | Timing | Format or condition |
|---|---|---|---|
| Royalty Fee | 4% of Gross Sales; 6.2% for Non-Traditional Restaurants | Monthly, by the 10th of the following month | Incentive schedules may reduce the Traditional rate temporarily. |
| Advertising and Marketing Service Fee | Currently 3.22%–5.0% of Gross Sales for Traditional Restaurants | Same timing as Royalty Fee | Part of a current 5.2% minimum aggregate advertising expenditure. |
| Local Market and Co-op Advertising | Current minimum Local Market / Co-op residual is 0.2%–1.98% of Gross Sales; participating Co-op rates generally range from 3% to 7% of monthly Gross Sales | As required | Traditional Restaurants; Non-Traditional Restaurants have no stated local percentage or Co-op participation requirement. |
| Learning Management System | $62.99 plus tax per Restaurant per year | Annually | May change with the number of participating Restaurants. |
| POS maintenance and support | $5,000–$10,000 per year | Ongoing | Item 11 estimate; future upgrades and updates are not capped by contract. |
| Optional Arby’s Order Ahead Platform | $50 monthly per Restaurant; 4% per order-ahead sale with 35¢ minimum and $1.25 maximum; 3% on third-party delivery sales | Monthly / per transaction | Only if the franchisee elects to participate. |
| Additional Training | $0–$4,000 plus trainee expenses and certain reinspection costs | As incurred | May follow failed inspections or additional training requirements. |
Sources: 2026 FDD, Item 6, pages 23–31; Item 11, pages 47–48. “Gross Sales” generally includes revenue from all products and services sold at or from the Restaurant and specified vending or ATM commissions, while excluding coupons, discounts, sales tax, and similar taxes.
The Traditional advertising components are not separate amounts to add mechanically. The current 5.2% minimum aggregate expenditure is composed of the Advertising and Marketing Service Fee, Local Market Advertising, and Local Cooperative Area Advertising when applicable. The mix changes with AFA dues and the market.
Which costs are triggered by renewal, transfer, noncompliance, or system changes?
Several material obligations do not appear in the opening budget because they arise later or only after a specific event. The most important are the renewal fee and remodel condition, transfer fee, required refresh, audit expenses, late interest, and supplier-approval costs.
- Renewal / successor franchise: a Traditional Restaurant pays 10% of the then-applicable standard Initial Franchise Fee; a Non-Traditional Restaurant pays the then-applicable Non-Traditional Initial Franchise Fee. The application and fee are due at least 180 days before expiration, and a full remodel to the then-current image may be required.
- Ownership transfer: $17,500 for the first Arby’s Restaurant, or $2,500 when the transferee already meets the FDD’s existing-franchise relationship condition. The non-refundable fee is due with the approval request.
- Tenth-anniversary refresh: by the tenth anniversary, the premises must be refreshed and upgraded to then-current exterior color and interior image standards. The FDD says this may require significant capital but gives no dollar estimate.
- Audit: the franchisee pays audit expenses plus interest if an audit shows a deficiency in reported Gross Sales of more than 3%.
- Supplier approval: evaluation and investigation costs generally range from $2,500 to $10,000 and may be passed through by a proposed supplier.
- Late amounts: interest may be charged up to the highest rate permitted under the stated governing laws, capped at 18% per year, plus applicable collection or attorneys’ fees.
- Other variable reimbursements: sample-testing costs, taxes and penalties, indemnity obligations, and the franchisor’s insurance procurement costs can become payable as circumstances arise; the FDD does not state a fixed amount.
Sources: 2026 FDD, Items 6, 8, and 17, pages 24–26, 38, and 57–62.
How much liquid capital and net worth does Arby’s require?
The official Arby’s franchise page states that a prospect needs $500,000 in liquid assets and $1,000,000 in net worth. Those are qualification thresholds, not the estimated cost of a Restaurant and not a promise that financing will be approved. The page was checked July 14, 2026.
See the official Arby’s financial qualification disclosures. Neither the 2026 FDD nor that official page states a separate minimum non-borrowed-funds amount.
Does Arby’s provide financing?
No. Item 10 states that Arby’s Franchisor, LLC does not offer direct or indirect financing and does not guarantee a note, lease, or other obligation. Item 7 also excludes finance charges, interest, and debt service from the total investment. A buyer considering third-party debt can review the U.S. Small Business Administration loan-program overview, but lender approval and terms depend on the applicant, collateral, project, and lender.
Which costs remain excluded or highly variable?
The official total is not a fixed project quote. It omits several financing and ownership costs, assumes particular leased-site scenarios, and cannot resolve future system upgrades or unusual local conditions.
- Real estate purchase: both Item 7 totals are expressly stated as excluding purchase of the premises.
- Ground-up Free-Standing construction: the disclosed Free-Standing range does not reflect the cost to construct a new building; it covers specified leased build-to-suit and conversion scenarios.
- Debt costs: loan fees, finance charges, interest, and debt service are excluded.
- Ongoing occupancy charges: Item 7 includes one month of rent but not a full estimate of common-area maintenance, real estate taxes, or landlord insurance.
- Unusual site conditions: the site estimate assumes no extraordinary soil, retaining-wall, stormwater, transportation, or utility problems.
- Future technology and image changes: required POS upgrades, refreshes, replacements, and renewal remodeling can create later capital needs without a disclosed cap.
- Multi-Brand Location costs: fees, training, technology, signage, inventory, and other costs for each companion brand are governed by that brand’s separate disclosure document; some shared occupancy costs may overlap.
- Owner compensation and extended working capital: Item 7 includes Restaurant management salaries for three months but does not separately identify owner pay and warns that more capital may be needed.
The highest disclosed Item 7 amount is not automatically a ceiling. A purchased site, ground-up building, unusual civil work, external financing, a Multi-Brand Location, or later remodel can create obligations outside the stated range. The project budget should use the exact premises type, lease terms, approved plans, supplier quotes, and incentive eligibility in the current agreements.
What capital distinction matters most?
The $651,550 to $2,456,600 headline span combines two different leased-premises ranges, not one universal Arby’s Restaurant budget. A prospective franchisee should first identify the applicable Item 7 premises column and the applicable Traditional or Non-Traditional Franchise Agreement format. The Initial Franchise Fee, Development Fee, Royalty Fee, advertising obligations, and incentive eligibility depend on those separate classifications.
The $33,000 to $100,000 Additional Funds range is included in Item 7 and covers three months, while the $500,000 liquid-assets and $1,000,000 net-worth figures are qualification thresholds on the official franchise page. Neither threshold replaces the full project cost, and Arby’s does not provide or guarantee financing.