27 Jan Franchise Business Plan – Arby’s
Arby’s Restaurant Group, Inc. (Arby’s) owns and operates a chain of fast-food restaurants. The Company offers sandwiches, burgers, salads, drinks, and desserts, sliders, chocolate milk, and fries. Arby’s is the second-largest sandwich restaurant brand in the world with more than 3,400 restaurants in eight countries.
Arby’s franchisees need to present a solid business plan and financial projections that include the estimated revenues and operational expenses. The initial investment for opening an Arby’s franchise ranges from $314,550 to $1,844,200. The initial investment must cover a wide range of start-up expenses such as equipment, opening inventory, and insurance. Arby’s franchisees are also obliged to cover ongoing fees such as the royalty fee and the advertising service fees. Franchisees need to have a minimum of $500,000 in liquid capital and a net worth of at least $1,000,000. Arby’s also offers some financing options through collaboration with PNC Equipment Finance, LLC. Joorney Business Plans has experience in writing business plans and developing long-term financial projections for Arby’s franchisees taking into account the specifics of the franchise agreement.
Arby’s requires all franchisees to have extensive experience as multi-unit restaurant operators and a desire to open multiple restaurants. The franchisees need to present strong corporate values that are in line with the Arby’s brand. All new franchisees need to participate in New Franchisee Orientation, an overview of the Arby’s system and the administrative corporate support. For the first and the second restaurant, franchisees must hire a total of six managers who are certified in the Arby’s seven-week Restaurant Management Training Program at a nationally certified training restaurant, or a comparable training program. Joorney’s writers develop in-depth personnel plans matching each employee’s experience, skills, and training with the designated positions within the franchise business.
Under each license agreement, Arby’s franchisees can operate one restaurant at a specified location that the franchisor accepts. The franchisor may, in its sole judgment, grant franchisees a specific and limited protected area surrounding the restaurant. During the term of the license agreement, the franchisor will not operate or license others to operate an Arby’s restaurant within the protected area. If the restaurant is a free-standing structure and the franchisor grants a protected area, it will typically delineate the protected area by a 1-mile radius from the location or by boundary streets or highways. If franchisees operate a non-traditional restaurant, the franchisor will not grant any protected area. Joorney Business Plans creates an extensive local market analysis, helping Arby’s franchisees estimate their growth potential in a given territory.
Arby’s unique Fast Crafted® positioning gives its brand a competitive advantage. The Company is holding a strong market position by serving high-quality food, affordably priced, with the speed and convenience guests demand. By opening an Arby’s franchise, you will benefit from a strong brand image and have stable income each year.