Typically located on 0.5-1 acre, the leasing terms are usually 20 years with between 2 and 4 five year options. Annual increases may be found ranging from 1-2%, or even from 5-10% every five years. Although keep in mind that for many Arby restaurants, lease terms and capitalization rates are variable depending on size, sales, and operations per individual location. This is further due to the fact that most Arby’s properties are franchised, so each will contain a unique guarantor with an associated leasing arrangement.
Arby’s continues to be one of the most popular franchises going after 52 years in operation. Being well known for providing a unique and tasty assortment of burgers and sliders, healthy salads, and delicious beverages, Arby’s Restaurant Group, Inc. is currently experiencing another wave of popularity with catchy advertising slogans like ‘We Have the Meats’.
Founded in 1964, Arby’s Restaurant Group, Inc. owns and franchises operations from Atlanta, GA. As part of its long corporate history, Roark Capital Group acquired the company in 2011. They now hold over 80% of the company. Interesting to note that Wendy's owns the other near 20%.
With a typical structure measuring 3000 plus sq. ft., Arby’s new free standing designs will be utilizing smaller dimensions at around 2000 sq. ft. This will open up new opportunities for restaurant owners as expansion continues. Whether it might be a minimal city inline spot, or end-caps featuring a drive through, the sky is really the limit. Considering travel plazas and other unusual locations, they will become more accessible to franchisees and investors alike.
At this time, there are currently 3300 locations in operation with plans to expand. By the year 2020, the U.S. Beef Corp. (United States Beef Corporation) expects to open 400 more locales, already owning 330 restaurants as of this writing.
Smaller holders include the likes of AEG Group LLC with plans to expand by 2025. AEG is owned by John Wade, former president of RTM Restaurant Group, with twenty one restaurants being held at present. Add to this list Joe Brumit, a restaurant aficionado who started working at a burger franchise early in his life. Later, he successfully made his way to owning over 44 franchises by 2015.