Arby’s
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Since 1964, Arby’s has provided customers with high quality, unique products not typically found in fast food. Serving one-of-a-kind menu items, Arby’s is well known for slow-roasted and freshly sliced roast beef sandwiches and famous Market Fresh sandwiches, wraps and salads, made with wholesome ingredients and served with the convenience of a drive-thru.
With thousands of locations nation-wide, Arby’s boasts wide brand recognition alongside its enormous growth potential. Franchisees can pick from several options for their restaurant ranging from a free-standing unit to a nontraditional unit in a mall, university campus, or stadium. Arby’s franchisees tap into the $500 billion food-service industry in serving innovative products that capitalize on current trends.
| |
Operating Units (in the U.S and its Territories) |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
2,448 |
2,417 |
2,367 |
| | % Change | -- |
-1.3% |
-2.1% |
| | Company-Owned |
1,176 |
1,169 |
1,114 |
| | % Change | -- |
-0.6% |
-2.1% |
| | Total |
3,624 |
3,586 |
3,511 |
| | % Change | -- |
-1.0% |
-2.1% |
| | Franchised as % of Total |
67.6% |
67.4% |
67.4% |
Investment Required
The fee for an Arby’s franchise ranges from $15,000 to $37,500.
Arby’s provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item |
Established Low Range |
Established High Range |
| |
Initial Franchise Fee |
$15,000 |
$37,500 |
| |
Expenses While Training |
$4,000 |
$19,000 |
| |
Site Development Costs |
$10,000 |
$265,000 |
| |
Misc. Opening Costs |
$5,000 |
$25,000 |
| |
Opening Inventory |
$10,000 |
$20,000 |
| |
Management Pre-Opening Salary |
$10,000 |
$20,000 |
| |
Equipment, Decor and Sign Package |
$200,000 |
$325,000 |
| |
Leased Land and Building Costs (up to 5 Months) |
$21,000 |
$59,000 |
| |
Additional Funds (3 Months) |
$104,000 |
$158,000 |
| |
Total Initial Investment |
$379,000 |
$928,500 |
Ongoing Expenses
Arby’s franchisees pay ongoing royalty fees that range from 4% to 7% of gross sales plus advertising fees equal to 4.2% of gross sales depending on the type of restaurant.
What You Get—Training and Support
Training is a key component of the Arby’s franchise system. As soon as franchisees sign their development agreement, they begin a one-day orientation program. The orientation is held at the Support Center in Atlanta, GA and is typically held once per quarter. The orientation program provides a brief overview of the Arby’s system and gives franchisees the opportunity to meet with senior management.
Training is a key component of the Arby’s franchise system. As soon as franchisees sign their development agreement, they begin a one-day orientation program. The orientation is held at the Support Center in Atlanta, GA and is typically held once per quarter. The orientation program provides a brief overview of the Arby’s system and gives franchisees the opportunity to meet with senior management.
Territory
Arby’s grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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