How to Finance an Arby's Franchise in 2026

Arby's investment runs $579K–$3.3M depending on format and real estate. SBA 7(a) is the primary vehicle. Inspire Brands ownership means a well-documented FDD lenders know.

Key takeaways

• Total investment: $579K–$3.3M depending on format (inline vs. freestanding) and market
• Arby's is on the SBA Franchise Directory — SBA 7(a) is the primary financing vehicle
• Drive-thru and freestanding formats drive higher investment but stronger revenue predictability
• Inspire Brands (Arby's parent) provides a well-documented FDD and approved vendor relationships
• Minimum liquidity: approximately $500K depending on territory and format
• Typical timeline: 60–90 days from complete application to funding

Arby's is one of the largest fast-food chains in the U.S., owned by Inspire Brands alongside Buffalo Wild Wings, Sonic, and other concepts. Known for roast beef sandwiches and a broad menu, Arby's offers multiple build formats — inline conversions, freestanding with drive-thru, and end-cap locations — which produces a wide investment range. The Inspire Brands platform means lenders familiar with other Inspire concepts can underwrite Arby's deals efficiently. This guide covers financing mechanics — see the companion cost-to-start guide for the full investment breakdown.

Arby's total investment + what lenders look at

Per the current Arby's FDD, total estimated initial investment runs $579K–$3.3M. Lenders evaluate:

• Equity injection: SBA minimum 10%; lenders typically require 20–25% for QSR at this investment level. Document non-borrowed funds.
• Format economics: Inline conversions have lower capital requirements but lower sales potential; freestanding drive-thru units drive higher AUV. Lenders want comparable AUV data from the FDD to size the loan.
• Borrower experience: Prior QSR or multi-unit restaurant experience is viewed favorably. Arby's requires demonstrated operational capability from franchisees.
• Personal credit: 680+ FICO is a common SBA lender threshold.
• DSCR: Lenders want DSCR ≥ 1.25 at stabilized revenue, typically achievable within 6–9 months for established QSR brands.

SBA 7(a) for Arby's franchises

Arby's is on the SBA Franchise Directory, enabling SBA 7(a) lenders to fast-track eligibility. 7(a) covers leasehold build-outs, equipment, and working capital:

• Loan range: $579K–$5M — covers most Arby's formats except large freestanding acquisitions with real estate
• Terms: Up to 10 years for equipment and working capital; up to 25 years for real estate
• Use of proceeds: Franchise fee, leasehold improvements, kitchen equipment, drive-thru technology, POS, signage, and working capital
• Working capital: Include 3–6 months of debt service in working capital for new units

SBA 504 for real estate and build-out

SBA 504 is the right tool when an Arby's franchisee is purchasing or constructing the freestanding building. The 504 structure (50% conventional / 40% CDC debenture / 10% equity) provides long-term fixed-rate financing for the real property. A separate equipment loan or 7(a) covers kitchen equipment, drive-thru systems, and working capital.

Equipment financing for Arby's

Commercial kitchen equipment (roasters, fryers, holding cabinets), drive-thru technology, POS systems, and refrigeration are significant capital items. Equipment loans run 3–7 years. Financing equipment separately from the real estate and leasehold loan can reduce the primary SBA loan amount.

Franchisor financing programs

Inspire Brands does not operate direct in-house lending for Arby's franchisees, but provides approved vendor relationships, development support, and access to lenders experienced with Inspire Brands FDDs and unit economics. The Inspire Brands platform scale means lenders have significant historical performance data for underwriting.

Down payment and liquidity requirements

Arby's typically requires approximately $500K in liquid assets for prospective franchisees (format and market-dependent). SBA's minimum equity injection is 10%; most QSR lenders require 20–25% from liquid personal funds for new operators. Post-closing liquidity covers debt service during the revenue ramp.

Timeline to funding

1. Pre-qualification: Lender reviews financials, FDD, site lease or purchase agreement, and business plan. 1–2 weeks.
2. SBA application: Full package: Form 413, tax returns, contractor bid, equipment list, market data. 2–3 weeks.
3. SBA approval: Conditional commitment from PLP lender. 3–5 weeks.
4. Closing and funding: Legal and closing. 2–3 weeks post-commitment. Total: 60–90 days.

Apply with ClearValue Lending

Apply at Find my match. Your file routes to one matched lender in our network. Related: SBA 7(a) loan application walkthrough · Arby's franchise costs.

Sources

• Arby's is listed on the SBA Franchise Directory, enabling expedited SBA 7(a) franchisor eligibility review. — SBA Franchise Directory
• SBA 7(a) loans provide up to $5M for franchise startup costs including leasehold improvements, equipment, and working capital. — SBA 7(a) Loan Program
• SBA 504 loans finance owner-occupied commercial real estate with long-term fixed-rate debentures from Certified Development Companies. — SBA 504 Loan Program
• The FTC Franchise Rule requires the FDD to disclose all franchise fees, initial investment ranges, and any financial performance representations. — FTC — Buying a Franchise: A Consumer Guide
• FDIC guidance provides the regulatory framework for SBA lenders underwriting QSR franchise build-outs at the $500K–$3M investment level. — FDIC — Financial Institution Letters

What lenders look for in an Arby's franchise application

Here are the five factors SBA lenders evaluate when underwriting an Arby's franchise deal (per SBA SOP 50 10 7):

• Format-specific DSCR modeling: Arby's investment range ($579K–$3.3M) spans inline conversions to ground-up freestanding builds — and lenders model DSCR differently for each. Conversion deals underwrite to the existing location's trailing 12-month revenue (verified via P&L and tax returns); new builds use FDD Item 19 AUV benchmarks as the pro forma ceiling. Mismatching the format to the underwriting model is the most common lender flag on Arby's applications.
• Equity injection and financial thresholds: SBA requires 10–20% of project cost in non-borrowed liquid cash. Inspire Brands requires approximately $500K in liquid assets for Arby's franchisees. On a $579K conversion, the SBA injection is $58K–$116K; on a $3.3M ground-up build, it's $330K–$660K. Lenders verify liquid assets with 3 months of bank and investment account statements.
• Combined fee-load DSCR stress test: Arby's combined royalty and ad fund (disclosed in the current FDD) must be explicitly modeled in DSCR calculations. Lenders require 1.25× coverage after fee load at projected AUV levels. FDD Item 19 AUV benchmarks are used as the pro forma ceiling — not operator projections.
• Inspire Brands portfolio familiarity: Lenders with experience in other Inspire Brands concepts (Sonic, Buffalo Wild Wings) have established FDD frameworks for Inspire deals. Arby's benefits from this institutional familiarity — lenders familiar with Inspire Brands' FDD structure tend to process these applications more efficiently.
• SBA Express eligibility at the conversion range: Arby's conversion deals at the lower range can qualify for SBA Express (up to $500K), which processes in 30–45 days vs. 60–90 for standard 7(a). For larger ground-up builds ($2M–$3.3M), standard SBA 7(a) or 7(a) + 504 combination is appropriate.

Deal structuring note

Arby's wide investment range creates two distinct deal archetypes: (1) inline conversion ($579K–$1.5M range) — simpler structure, SBA Express viable at the lower end, underwritten to existing cash flow; (2) ground-up freestanding drive-thru ($2M–$3.3M) — requires standard SBA 7(a) plus potentially SBA 504 for owned real estate, larger equity injection, and a new-build pro forma. Lenders who have processed both types know the underwriting differences. Inspire Brands' scale means there is more institutional lender experience with Arby's FDD than with most independent regional QSR brands.

Frequently asked questions