Vetted Biz is the leading platform for accessible and analytical data on franchises and businesses available in the U.S. Our research team has reviewed over 1,500 franchises and knows the key facts and data that signal a successful Businesses owned and operated by separate entities or investors through contracts with the parent company... system. Upon extensive review using a number of internet research tools, our team was able to compile a short list of the “Top 20 Most Popular Franchises in the United States.” In the article below, we review the business model proposed by one of these 20 franchises: Arby’s, as well as the requirements that encompass its franchise application process.
Arby’s began its story when the two brother Forrest and Leroy Raffel, followed their passion for the food industry by opening a food-service consulting firm in 1950. Despite initially feeling fulfilled by their career path, the idea of opening a restaurant was always at the back of their minds until one day, the two brothers had the idea to open a service restaurant focused primarily on serving roast-beef sandwiches. From there, Arby’s opened its doors to its first restaurant in 1964 in Boardman, Ohio. The name in particular was a deviation from the first letters of the brother’s iconic title “R and B” (Raffel Brothers). 70 years later, the franchise has over 3,400 restaurants across 4 continents. Additionally, Arby’s is currently headquartered in Atlanta, Georgia and is led by its CEO, Paul Brown, who previously served as the Vice-President of Global Brand Services at the InterContinental Hotels Group.
The first factor to consider when interested in investing in an Arby’s franchise are the financial requirements accompanying this investment opportunity. The total investment amount to establish an Arby’s franchise ranges from $628,950-$2,205,600 including the company’s This is a test that ranges from $6,250-$50,000 and excluding any land or lease costs. Once the store has been built and operations begin, franchisees are then expected to pay the parent company a royalty fee of 4% on gross sales, and an additional marketing fee of 4.2% on gross sales in exchange for the marketing services provided by the franchisor. The franchisor is particularly looking for experienced candidates who are truly driven to own an Arby’s franchise. Additionally, the minimum net worth required to own an Arby’s franchise is $1,000,000 and the applicant must have liquid assets totaling at least $500,000.
When evaluating an Arby’s franchise’s potential for growth one does not need to go beyond Quick Service Restaurants numbers to better understand the prospect for success of the opportunity at hand. The fast-food industry generated $200 billion in revenues in 2015 and the industry has since been expected to have an annual growth of 2.5% for the following subsequent years. According to QSR Magazine, Arby’s was ranked number 17 amongst the Top 50 Franchises for 2019, showing strong prospects for success! Looking at the franchise’s internal performance, the average monthly sales in 2018 for free standing new stores was of $88,680 out of which 49% met or exceeded this number. Additionally, only 21 franchises ceased operations in 2018 – a minimal number when compared to the company’s 2,197 franchised units. Moving forward, Arby’s is looking to establish new units across the entire US as well as worldwide.
Investing in an Arby’s franchise is an interesting opportunity, especially for individuals who are business-driven and would like to make their way into the Fast-Food Industry. As seen, Quick Service restaurants are always expanding, and the demand is always as high as the owner is determined to make it go! That said, if you are an individual with previous business management experience and are willing to invest an amount ranging from $628,950-$2,205,600, Arby’s is the right franchise for you!