Steak 'n Shake Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Number of franchises

131

Investment required

$156,000 - $2,340,000

Revenue (AUV)

$1,625,000

Last 3 years unit growth

-18%

Initial franchise fee

$25,000

Operating Profit

22.1%

Steak 'n Shake: Crafting Iconic Steakburgers with a Legacy of Quality

Steak 'n Shake, established in 1934 by A.H. "Gus" Belt in Normal, Illinois, is a renowned American restaurant chain celebrated for its premium steakburgers and hand-dipped milkshakes.

The company is currently headquartered in Indianapolis, Indiana. Since its inception, Steak 'n Shake has expanded its presence across the United States and internationally, offering a unique blend of fast-food convenience and classic diner ambiance.

The franchise began its expansion in 1939, allowing entrepreneurs to operate their own Steak 'n Shake restaurants under the brand's established name and business model.

The menu primarily features steakburgers made from a blend of T-bone, sirloin, and round steaks, along with a variety of milkshakes, fries, and other classic American fare.

What sets Steak 'n Shake apart from its competitors is its commitment to quality and transparency. The founder's original practice of grinding steaks into burgers in front of customers exemplified this dedication, ensuring patrons of the product's authenticity and freshness.

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	Freestanding Quick Service Format	In-line Quick Service Format	Non-Traditional Format	Roadside Format	Classic to Quick-Service Conversion Format
Franchise Fee	$25,000 - $25,000	$25,000 - $25,000	$25,000 - $25,000	$25,000 - $25,000	$0 - $0
Construction Management/Fee	$0 - $35,000	$0 - $4,000	$0 - $3,000	$0 - $30,000	$0 - $0
Site Improvements	$355,902 - $574,036	$0 - $21,000	$0 - $9,000	$166,000 - $191,000	$0 - $0
Building or Leasehold Improvements	$572,151 - $922,824	$80,000 - $727,000	$150,000 - $252,000	$160,000 - $338,000	$35,840 - $73,416
Furniture, Fixtures, Equipment, & Signage	$305,365 - $492,525	$307,000 - $374,000	$107,000 - $304,000	$273,000 - $330,497	$94,130 - $171,374
Pre-Opening Expenses	$5,000 - $10,000	$5,000 - $10,000	$5,000 - $10,000	$5,000 - $10,000	$0 - $0
Additional Funds for Three Months	$15,000 - $20,000	$15,000 - $20,000	$5,000 - $20,000	$15,000 - $20,000	$0 - $0
Inventory and Supplies for Opening	$10,000 - $15,000	$6,000 - $15,000	$8,000 - $15,000	$8,000 - $15,000	$10,000 - $20,000
Training Expenses (Travel, Meals & Lodging Only)	$16,000 - $55,000	$16,000 - $55,000	$16,000 - $30,000	$16,000 - $55,000	$16,000 - $55,000
Architectural, Civil Engineering & Other Professional Fees & Permits	$35,000 - $78,000	$0 - $85,000	$0 - $20,000	$32,000 - $65,000	$0 - $0
Impact and Tap Fees	$5,000 - $78,000	$0 - $10,000	$0 - $2,000	$5,000 - $95,000	$0 - $0
Grand Opening Marketing Expenses	$0 - $25,000	$0 - $15,000	$0 - $15,000	$0 - $15,000	$0 - $25,000
Extension Fee	$0 - $10,000	$0 - $10,000	$0 - $10,000	$0 - $10,000	$0 - $0
Total	$1,344,419 - $2,340,385	$454,000 - $1,371,000	$316,000 - $715,000	$705,000 - $1,199,497	$155,970 - $344,790

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Franchise Disclosure Document

Training

Steak 'n Shake provides a comprehensive, multi-week training program for its Franchise Partners, ensuring they are well-prepared to operate their restaurants effectively.

This extensive training encompasses various aspects of restaurant management, including day-to-day operations, customer service excellence, and quality control measures.

The program is designed to equip franchisees with the necessary skills and knowledge to uphold the brand's standards and deliver a consistent dining experience to customers.

In addition to the initial training, Steak 'n Shake offers ongoing support to its franchisees. This includes field-based operations assistance, administrative services such as payroll and accounting, and creative marketing support.

Territory Protection

Steak 'n Shake offers territory protection to its franchisees, particularly those engaged in multi-unit development plans. For these franchisees, the company establishes a development agreement that outlines specific territories and schedules for franchise openings.

This ensures franchisees can operate within an exclusive area, reducing the risk of internal competition. This approach helps maintain the profitability and sustainability of each location by avoiding market saturation.

Territorial rights are essential for preserving brand integrity while fostering a supportive environment for franchisees. This protection strengthens the relationship between the franchisor and its partners, promoting long-term business success.