News

Arby’s launches financing program for restaurant remodeling initiative

June 30, 2014

Arby’s Restaurant Group has entered into an agreement with Element Financial Corp. to help finance the brand’s remodeling program, announced earlier this month. Arby’s plans to renovate at least 30 company-operated restaurants this year and further significant remodels across the system in 2015.

With the goal of facilitating access to capital, ARG has added the Element program, which will provide capital to qualified Arby’s franchisees for up to 100 percent of remodel costs, according to a news release.

"This is a holistic, turnkey revitalization effort," Arby’s CEO Paul Brown said in the release. "The high return that our remodels are providing, in addition to our industry-beating sales momentum and the reinvigorated Arby’s system as a whole has piqued the interest of the industry and financial community. There’s never been a better time to invest in the Arby’s brand."

Arby’s CFO David Pipes said this marks the first time in the brand’s history that it has partnered with a lending institution and leveraged its balance sheet to offer such a package.

 "We believe the program that we have put in place successfully achieves our key remodel capital objectives, which include: competitive rates and terms, availability to small and large franchisees, financing that can exist within current capital structures and a simple and efficient process for franchisees," Pipes said.