Arby's vs McDonald's: Which Is the Better Investment?

Side-by-side comparison of investment costs, fees, unit economics, and franchisee satisfaction. Data from FDD disclosures and franchise database — updated 2026.

Food & Restaurant Real Data Not Investment Advice
A

Arby's

Food & Restaurant
$457K – $2.0M
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VS
M

McDonald's

Food & Restaurant
$1.3M – $2.3M
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At a Glance: Key Differences

Data-driven observations based on disclosed figures. Not investment advice — verify current numbers in each franchise's FDD.

Investment Cost
Arby's wins on investment range ($272K less) vs McDonald's.
Fee Burden
Both have the same royalty rate.
Unit Count
McDonald's wins on total units (36,631 more) vs Arby's.
Satisfaction
McDonald's wins on franchisee satisfaction vs Arby's.

Investment & Fees

Metric Arby's McDonald's
Min Investment $457K $1.3M
Max Investment $2.0M $2.3M
Franchise Fee $38K $45K
Royalty Rate 4.0% 4.0%
Ad Fund Rate 4.2% 4.0%

Unit Economics

Metric Arby's McDonald's
Avg Unit Revenue $1.3M $3.7M
Avg Profit Margin N/A N/A

Scale & Growth

Metric Arby's McDonald's
Total Units 3,400 40,031
Annual Growth -0.8% 3.0%
Failure Rate 3.5% 1.5%

Franchisee Performance

Metric Arby's McDonald's
Franchisee Satisfaction 66/100 72/100

Track Record

Metric Arby's McDonald's
Years in Business 60 69
Years Franchising 58 69

Financial Requirements

Metric Arby's McDonald's
Min Net Worth Required $1.0M $500K
Liquid Capital Required $500K $500K

Operations

Metric Arby's McDonald's
Avg Employees 30 50
Training Weeks 6 9

Frequently Asked Questions

Is Arby's or McDonald's a better franchise investment?

The answer depends on your goals, budget, and market. Arby's has 3,400 total units and a 66/100 franchisee satisfaction score. McDonald's has 40,031 total units and a 72/100 franchisee satisfaction score. Use our ROI Calculator to model both scenarios.

How much does it cost to open a Arby's franchise?

Based on data in our database, opening a Arby's franchise requires an initial investment of $457K – $2.0M. The franchise fee is $38K, with ongoing royalties of 4.0%. Always request the current FDD for exact figures.

How much does it cost to open a McDonald's franchise?

Based on data in our database, opening a McDonald's franchise requires an initial investment of $1.3M – $2.3M. The franchise fee is $45K, with ongoing royalties of 4.0%. Always request the current FDD for exact figures.

What is the royalty rate for Arby's vs McDonald's?

Arby's's royalty rate is 4.0%. McDonald's's royalty rate is 4.0%. That means McDonald's has the lower ongoing royalty burden.

Which has more locations — Arby's or McDonald's?

Arby's has 3,400 total units. McDonald's has 40,031 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Arby's or McDonald's semi-absentee friendly?

Arby's is typically run as a semi-absentee model. McDonald's is typically run as a owner-operator model. If passive income is your goal, semi-absentee models let you hire a manager to run day-to-day operations.

Data sourced from franchise disclosure documents and public records. Investment ranges, royalty rates, and unit counts change — always request current FDD before making investment decisions. Last updated March 2026.

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