Arby's vs Huddle House
Arby's vs Huddle House: Arby's costs $645K to $2.5M to open; Huddle House costs $95K to $707K. Arby's has 3,365 units, Huddle House has 95. SBA loan history: Arby's = 330 loans (13.0% default); Huddle House = 134 loans (20.9% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Arby's vs Huddle House: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Huddle House requires the lower minimum capital commitment ($95K vs $645K for Arby's), a 578% spread. Initial franchise fees come in at $38K for Arby's versus $69K for Huddle House, Arby's has the lower entry fee. Ongoing royalty load is 4% for Arby's and 4% for Huddle House, equal royalty drag.
System Scale & Tenure
On scale, Arby's operates 3,365 units to Huddle House's 95, roughly 35× the system size. Huddle House has been operating 62 years (founded 1964) versus 62 for Arby's (founded 1964), a 0-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Arby's has the deeper SBA lending track record, with 330 7(a) approvals compared with 134 for Huddle House. Arby's's peak SBA year was 1995 (27 loans); Huddle House's peak was 2008 (10 loans). Huddle House's more recent peak generally indicates fresher lender appetite. Arby's has the most SBA funded units in CA, with 44. Huddle House leads in GA, with 36. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded Arby's deals is $583K vs $409K for Huddle House, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 13.0% for Arby's and 20.9% for Huddle House, Arby's has the cleaner SBA loss record by 7.9 points. PeerSense FPI scores come in at 57 (Moderate) for Arby's and 39 (Fair) for Huddle House, giving Arby's the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 57/100 | 39/100 |
Health Tier | Moderate | Fair |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 330 | 134 |
SBA Volume | – | – |
Default Rate | 13.0% | 20.9% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $645K to $2.5M | $95K to $707K |
Franchise Fee | $38K | $69K |
Royalty Rate | 4% | 4% |
Ad Fund | 5.2% | 2% |
Liquid Capital | $500K | $100K |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Disclosed |
System Size & Operations
Total Units | 3,365 | 95 |
Franchised Units | 2,286 | 95 |
Company Owned | 1,079 | – |
Term Length | 20 yrs | 5 yrs |
Brand Information
Year Founded | 1964 | 1964 |
Franchising Since | 2015 | 1966 |
Years Franchising | 11 yrs | 60 yrs |
Headquarters | OROVILLE, CA | GROVETOWN, GA |
Category | Full-Service Restaurants | Full-Service Restaurants |
Website | ||
FDD Year | 2025 | 2025 |
Which Is Better, Arby's or Huddle House?
Lower upfront capital required
Huddle House
Arby's: $645K starting · Huddle House: $95K starting
More SBA lender confidence
Arby's
Arby's: 330 SBA loans · Huddle House: 134 SBA loans
Lower SBA default rate
Arby's
Arby's: 13.0% · Huddle House: 20.9%
Larger system & brand presence
Arby's
Arby's: 3,365 units · Huddle House: 95 units
Lower ongoing royalty load
Tie
Arby's: 4% · Huddle House: 4%
More lender financing options
Arby's
Arby's: 130 unique lenders · Huddle House: 68 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
Need Funding for Arby's or Huddle House?
PeerSense connects you with 500+ SBA lenders and capital sources. Our referral fee is established upfront and paid at closing.
SBA Lenders & Capital Sources
Retainers or Consulting Fees
10% Down Franchise Loans
About These Franchises
Arby's vs Huddle House: Franchise Funding Comparison
Comparing Arby's and Huddle House is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $95K to $2.5M.
Arby's has 330 SBA loans on record and Huddle House has 134. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Arby's vs Huddle House, Frequently Asked Questions
Which is a better franchise investment, Arby's or Huddle House?
How much does a Arby's franchise cost compared to Huddle House?
Can I finance Arby's or Huddle House with an SBA loan?
Which has a lower SBA default rate, Arby's or Huddle House?
Talk to PeerSense
Tell us which brand and your budget. We source capital from lenders who have already funded deals in these systems.
Franchise / SBA 7(a): The desk will reach out. No obligation.
Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman