Arby’s Restaurant Group, Inc., franchisor of the iconic quick-service sandwich chain with nearly 3,400 Arby’s restaurants worldwide, has entered into an agreement with Element Financial Corp. to power the Arby’s Remodel Financing Program. Earlier this month, Arby’s announced a new Brand Revitalization and remodel program with plans to renovate at least 30 company-operated restaurants in 2014 and further significant remodels across the system in 2015.
In conjunction with that effort, and with the goal of facilitating access to capital, ARG has cultivated relationships with financial institutions to improve lender knowledge of the Arby’s system and recent business success. The Element program will provide capital to qualified Arby’s franchisees for up to 100 percent of remodel costs.
“This is a holistic, turnkey revitalization effort,” said Paul Brown, Arby’s Chief Executive Officer. “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.”
With over $4 billion in total assets, Element Financial Corp. is one of North America’s leading equipment and project finance companies. “Element has a proven track record within the franchise finance industry in providing financing for activities such as capital campaigns, remodels, reimages, restaurant construction and acquisitions. We are proud to work with ARG and its franchisees on the Remodel Financing Program,” commented Steve Grosso, President of Element Financial Corp. (USA).
“This is the first time in the Brand’s history that we have engaged a lending institution and leveraged the ARG balance sheet to offer such a financing package to the Arby’s system,” said David Pipes, Arby’s Chief Financial Officer. “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.”