Famous Dave’s Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$45,000
Investment required
$70,500 - $6,120,000
Royalty fee
5.00%

Famous Dave's: Mastering Authentic Barbecue Excellence

Famous Dave's of America, Inc., widely recognized as Famous Dave's, is a distinguished chain of barbecue restaurants that has established a strong presence, particularly in the Midwest. The chain was founded by Dave Anderson on June 23, 1994, in Hayward, Wisconsin, and has seen substantial growth since its inception. The company is headquartered in Minnetonka, Minnesota, which acts as the operational hub for its numerous locations.

The restaurant chain is celebrated for its genuine barbecue offerings, featuring signature dishes such as barbecue ribs, beef brisket, chicken, burgers, soups, salads, and desserts. These menu items are prepared with a steadfast commitment to authenticity and quality, distinguishing Famous Dave's from its competitors. The brand's dedication to excellence is underscored by its collection of over 700 awards for its barbecue, showcasing the exceptional taste and quality that patrons have come to expect.

Famous Dave's sets itself apart through the unique journey of its founder, Dave Anderson. Anderson, who is of Ojibwe and Choctaw heritage, overcame numerous obstacles to pursue his passion for barbecue, spending 25 years traveling across the country to perfect his recipes. His dedication culminated in the establishment of a barbecue franchise that not only delivers delicious food but also embodies a story of perseverance, cultural heritage, and culinary creativity.

Despite facing significant challenges, such as the devastating fire that destroyed its original location in 2014 and various financial hurdles, Famous Dave's has demonstrated resilience and adaptability. The launch of Jimmie's Old Southern Smokehouse BBQ under the Famous Dave's brand and the strategic rebranding to BBQ Holdings are testaments to the company's commitment to remaining relevant in the ever-evolving culinary world.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount (Add-On Ghost Kitchen/Cloud Kitchen) Amount (Line Service) Amount (Counter Service) Amount (Full Service)
Initial Fee $10,000 $45,000 $45,000 $45,000
Leasehold Improvements $0 - $300,000 $200,000 - $500,000 $300,000 - $700,000 $475,000 - $1,600,000
Land, Building and Construction $0 - $1,500,000 $600,000 - $1,500,000 $1,575,000 - $2,407,500 $2,410,000 - $3,200,000
Travel and Living Expenses for You and Your Management Staff During Training $10,000 - $20,000 $10,000 - $20,000 $15,000 - $30,000 $25,000 - $40,000
Reimbursement of Expenses for Opening Team $25,000 - $40,000 $40,000 - $60,000 $40,000 - $85,000 $55,000 - $100,000
Furniture, Fixtures, Décor, and Equipment $0 - $100,000 $100,000 - $250,000 $200,000 - $350,000 $500,000 - $650,000
Architectural and Engineering Fees $0 - $50,000 $20,000 - $40,000 $40,000 - $75,000 $50,000 - $170,000
Signs $10,000 - $25,000 $25,000 - $45,000 $30,000 - $55,000 $45,000 - $75,000
Liquor License Costs $500 - $5,000 $500 - $5,000 $5,000 - $50,000 $25,000 - $75,000
Site Model Report Fee $0 $750 $750 $750
Restaurant Lease Payments - 3 Months $0 - $25,000 $10,500 - $25,000 $20,000 - $45,000 $10,500 - $25,000
Employee Salaries - 3 Months $0 - $35,000 $15,000 - $35,000 $25,000 - $50,000 $60,000 - $95,000
Miscellaneous $5,000 - $10,000 $5,000 - $10,000 $5,000 - $10,000 $5,000 - $10,000
Grand Opening Celebration $5,000 - $15,000 $5,000 - $15,000 $5,000 - $15,000 $15,000 - $25,000
Additional Funds - 3 Months $5,000 - $10,000 $5,000 - $10,000 $5,000 - $15,000 $5,000 - $10,000
Total if premises leased by you $70,500 - $645,000 $481,750 - $1,060,750 $735,750 - $1,525,750 $1,316,250 - $2,920,750
Total if premises purchased by you $70,500 - $2,145,000 $1,081,750 - $2,560,750 $2,310,750 - $3,993,250 $3,726,250 - $6,120,750

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Number of units

2024
Franchised units

97

92

81

Company-owned units

29

36

35

Total units

126

128

116

Franchise Disclosure Document

Training 

Training Overview: Famous Dave’s provides an extensive training program designed to equip franchisees with the essential knowledge and skills needed to successfully manage their restaurant. This program utilizes a variety of teaching methods to ensure comprehensive learning.

Mandatory Attendees: A minimum of four individuals must participate and complete the initial training. This includes the franchisee's Operating Principal, the General Manager, and at least two to four members of the franchisee’s management team, with the exact number based on the restaurant's size as specified by Famous Dave’s.

Training Curriculum: The program encompasses a broad spectrum of subjects, including sales strategies, product familiarization, accounting practices, food preparation, and operations management.

Training Venue and Schedule: Training takes place at locations designated by Famous Dave’s. Management Staff must commence training 60 to 75 days before the planned opening of the franchisee’s restaurant.

Training Costs: Franchisees are responsible for covering all associated costs, including salaries, benefits, travel, and other expenses for their Management Staff during the training period.

Territory Protection

Territory Grant: Franchisees are provided a defined area known as the "Territory." This Territory typically includes one or more cities or market regions and is marked by roadways, county lines, natural or man-made landmarks, or other identifiers set by Famous Dave’s. The Territory's boundaries are established using these identifiers.

Pre-Agreement Details: Before signing the Area Development Agreement, a detailed description of the Territory is given, and a map of the Territory may be included. The size of the Territory and the number of Famous Dave’s Restaurants to be developed within it are based on the Territory's population and market potential.

Factors Considered: The determination of the Territory takes into account various elements such as demographics, economic conditions, business climate, competition, and other pertinent factors.

Territory Stability: Once granted, the Territory cannot be modified or moved during the term of the Area Development Agreement.

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