Which has more SBA loans, Arby's or Mellow Mushroom?

Arby's has 330 SBA 7(a) historical approvals; Mellow Mushroom has 201. Arby's has the deeper public lender track record, which generally translates into faster pre-qualification and broader lender familiarity.

What is the default rate for Arby's vs Mellow Mushroom SBA loans?

Arby's's SBA default rate is 13.0%, versus 10.4% for Mellow Mushroom. Mellow Mushroom has the cleaner loss profile, which capital sources weigh when pricing the next deal in the brand.

When did Arby's and Mellow Mushroom peak in SBA lending volume?

Arby's's SBA approval peak was 1995 with 27 loans; Mellow Mushroom's peak was 2015 with 23. A more recent peak (currently Mellow Mushroom) generally indicates fresher lender appetite and easier financing today.

Which states have the most Arby's and Mellow Mushroom SBA loans?

Arby's leads in CA with 44 SBA-funded units; Mellow Mushroom leads in GA with 54. The brand that matches your operating state typically closes faster because local lenders already know the unit economics.

Side by Side Comparison

Arby's vs Mellow Mushroom

Quick Answer

Arby's vs Mellow Mushroom: Arby's costs $645K to $2.5M to open; Mellow Mushroom costs $175K to $1.9M. Arby's has 3,365 units, Mellow Mushroom has 138. SBA loan history: Arby's = 330 loans (13.0% default); Mellow Mushroom = 201 loans (10.4% 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 Mellow Mushroom: 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

Mellow Mushroom requires the lower minimum capital commitment ($175K vs $645K for Arby's), a 269% spread. Initial franchise fees come in at $38K for Arby's versus $50K for Mellow Mushroom, Arby's has the lower entry fee. Ongoing royalty load is 4% for Arby's and 5% for Mellow Mushroom, giving Arby's the lighter per-unit drag on operating income.

System Scale & Tenure

On scale, Arby's operates 3,365 units to Mellow Mushroom's 138, roughly 24× the system size. Arby's has been operating 62 years (founded 1964) versus 52 for Mellow Mushroom (founded 1974), a 10-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 201 for Mellow Mushroom. Arby's's peak SBA year was 1995 (27 loans); Mellow Mushroom's peak was 2015 (23 loans). Mellow Mushroom's more recent peak generally indicates fresher lender appetite. Arby's has the most SBA funded units in CA, with 44. Mellow Mushroom leads in GA, with 54. 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 $979K for Mellow Mushroom, useful as a sizing anchor when modeling your own unit.

Risk Signal

SBA default rates are 13.0% for Arby's and 10.4% for Mellow Mushroom, Mellow Mushroom has the cleaner SBA loss record by 2.6 points. PeerSense FPI scores come in at 57 (Moderate) for Arby's and 53 (Moderate) for Mellow Mushroom, giving Arby's the stronger composite signal across SBA performance, lender appetite, and operational consistency.

Arby's

Full-Service Restaurants

57 10W

Mellow Mushroom

Full-Service Restaurants

Health & Performance

FPI Score	57/100	53/100
Health Tier	Moderate	Moderate
Confidence	N/A	N/A
Lending Trend	Declining	Declining

SBA Lending

SBA Loans	330	201
SBA Volume	–	–
Default Rate	13.0%	10.4%
Peer Tier	major	major

Investment & Costs

Total Investment	$645K to $2.5M	$175K to $1.9M
Franchise Fee	$38K	$50K
Royalty Rate	4%	5%
Ad Fund	5.2%	2%
Liquid Capital	$500K	N/A
Net Worth Required	N/A	N/A

Financial Performance (Item 19)

Item 19 Status

Disclosed

Not Disclosed

System Size & Operations

Total Units	3,365	138
Franchised Units	2,286	138
Company Owned	1,079	–
Term Length	20 yrs	15 yrs

Brand Information

Year Founded	1964	1974
Franchising Since	2015	N/A
Years Franchising	11 yrs	N/A
Headquarters	OROVILLE, CA	ATLANTA, GA
Category	Full-Service Restaurants	Full-Service Restaurants
Website	arbys.com	mellowmushroom.com/franchising
FDD Year	2025	N/A

Which Is Better, Arby's or Mellow Mushroom?

Lower upfront capital required

Tie

Arby's: $645K starting · Mellow Mushroom: $175K starting

More SBA lender confidence

Arby's

Arby's: 330 SBA loans · Mellow Mushroom: 201 SBA loans

Lower SBA default rate

Mellow Mushroom

Arby's: 13.0% · Mellow Mushroom: 10.4%

Larger system & brand presence

Tie

Arby's: 3,365 units · Mellow Mushroom: 138 units

Lower ongoing royalty load

Arby's

Arby's: 4% · Mellow Mushroom: 5%

More lender financing options

Arby's

Arby's: 130 unique lenders · Mellow Mushroom: 59 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.

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About These Franchises

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Arby's vs Mellow Mushroom: Franchise Funding Comparison

Comparing Arby's and Mellow Mushroom is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $175K to $2.5M.

Arby's has 330 SBA loans on record and Mellow Mushroom has 201. 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.

SBA Loan Guide Franchise Funding Options Best SBA Franchise Lenders All Franchises Talk to PeerSense

Arby's vs Mellow Mushroom, Frequently Asked Questions

Which is a better franchise investment, Arby's or Mellow Mushroom?

Compare Arby's vs Mellow Mushroom franchise costs, FDD data, royalty rates, unit counts, and SBA lending history side by side above. The best franchise depends on your capital, market, and risk tolerance, not a single ranking. Use the decision matrix above to see which brand wins on each financing dimension.

How much does a Arby's franchise cost compared to Mellow Mushroom?

Arby's requires $645K to $2.5M in total initial investment with a $38K franchise fee. Mellow Mushroom requires $175K to $1.9M with a $50K franchise fee. All numbers come from official Franchise Disclosure Document filings.

Can I finance Arby's or Mellow Mushroom with an SBA loan?

Both brands appear on the SBA Franchise Directory and have funded SBA 7(a) loans: Arby's has 330 SBA loans on record; Mellow Mushroom has 201. SBA 7(a) is the most common franchise financing vehicle, offering up to $5M with 10% down. PeerSense routes your deal to lenders who have already approved the brand.

Which has a lower SBA default rate, Arby's or Mellow Mushroom?

Arby's: 13.0% SBA default rate. Mellow Mushroom: 10.4% SBA default rate. Lower default rates mean lenders quote tighter rates and underwrite faster.

Compare Arby's to other franchises Compare Mellow Mushroom to other franchises Browse all Full-Service Restaurants franchises

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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 October 2, 2026LinkedIn profile About Edward Freeman