American FreightFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A AMERICAN FREIGHT franchise requires a total initial investment of $497K – $943K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2023 FDD, average unit revenue was $2.9M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $497K – $943K
- 38th pct Retail
- Avg gross sales
- $2.9M
- 20th pct Retail
- Royalty
- 5.0%
- 6th pct Retail
- Units
- 260
- 34th pct Retail
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 4.0x in gross revenue, well above the typical 1.5-2.5x range.
The system grew 400% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $497K – $943K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.9M/year.
- Verdict A (Top Quintile) with a risk score of 46/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- American Freight Franchisor, LLC
- Parent company
- Franchise Group, Inc.
- Incorporated in
- DE
- HQ
- 109 Innovation Court, Suite J, Delaware, Ohio 43015
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $988.9M
- vs $883.5M prior year
Overview
About
American Freight franchisees operate furniture and appliance retail stores offering financing options to customers. Daily operations include inventory management, sales floor operations, customer financing coordination, and local marketing. The business model relies heavily on customer credit financing and competitive pricing in an economically-sensitive retail sector.
- CEO
- Peter Corsa
- Headquarters
- OH
- Founded
- 2020
- FDD year
- 2023
- States available
- 31
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $75K | $175K |
| Equipment, build-out, other | $372K | $718K |
| Total initial investment | $497K | $943K |
Source: AMERICAN FREIGHT 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$202K
7.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $497K – $943K
- Better than avg vs category
- Liquid capital req'd
- $75K – $175K
- Better than avg vs category
- Franchise fee
- $35K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- $1,638.46 per week; additional fees up to 5% of Gross Sal…
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Technology fee | $346 |
| Transfer fee | $2K |
| Renewal fee | $50 |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $2.9M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- net_income
- Sample size
- 243 units
- vs category median 49 · large
- Range (low → high)
- $499K→$5.3M
- Cohort dispersion (min → max)
- Reporting year
- 2022
- Fiscal year the figures cover
- Transparency
- 9 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
Revenue is 4.0x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Retail averages
How American Freight Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 260
- Opened
- 4
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 255
- Corporate units in the system
- % franchised
- 2%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
- Ceased ops
- 2.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $1.4M
- Median loan
- $700K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into American Freight's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
American Freight represents HIGH RISK due to negative franchisee profitability, unsustainable 400% growth masking unit economics problems, going concern status, corporate litigation history, and unprotected territories—creating a business model where most franchisees lose money despite significant capital investment.
Litigation (Item 3)
MMS Group, LLC v. Buddy's Franchising and Licensing LLC (pending arbitration) - franchisee alleges breach of franchise agreement, breach of covenant of good faith and fair dealing, and violation of Florida's Deceptive and Unfair Trade Practices Act; Buddy's filed counterclaims alleging breach of non-compete covenants, unauthorized inventory sales, Lanham Act violation, and Defend Trade Secrets Act violation. FTC Matter No. 191 0074 (concluded) - FTC settlement with Buddy's Newco, LLC regarding reciprocal purchase agreements with Aaron's, Inc. and Rent-A-Center, Inc.; prohibited from non-compete enforcement and required to implement antitrust compliance programs.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 46 / 100 rating
- 01MINORNegative average net income (-$157,938) indicates franchisees are losing money on average despite $1.9M revenue
- 02MINORExplosive 400% YoY unit growth is unsustainable and suggests aggressive recruitment masking underlying unit economics problems
- 03HIGHNo going concern status raises questions about corporate financial stability and ability to support franchisees
- 04MINORUnprotected territory creates direct competition between franchisees and corporate expansion
- 05HIGHAffiliate litigation (Buddy's) involving breach of contract and FTC antitrust settlement indicates corporate governance and competitive practice concerns
- 06MINORHigh initial investment ($496k-$943k) paired with negative profitability creates severe capital recovery risk
- 07MINOR5% royalty on gross sales is relatively high given franchisees operate at a loss
- 08MINORNo Item 19 financial performance representations limits transparency on actual franchisee outcomes
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Density classes/trade area radius |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 2 |
View Item 3 litigation summary
MMS Group, LLC v. Buddy's Franchising and Licensing LLC (pending arbitration) - franchisee alleges breach of franchise agreement, breach of covenant of good faith and fair dealing, and violation of Florida's Deceptive and Unfair Trade Practices Act; Buddy's filed counterclaims alleging breach of non-compete covenants, unauthorized inventory sales, Lanham Act violation, and Defend Trade Secrets Act violation. FTC Matter No. 191 0074 (concluded) - FTC settlement with Buddy's Newco, LLC regarding reciprocal purchase agreements with Aaron's, Inc. and Rent-A-Center, Inc.; prohibited from non-compete enforcement and required to implement antitrust compliance programs.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- POS system
- Computer System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Computer System
Item 20 · call current owners
Franchisee Contacts
32 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
AMERICAN FREIGHT · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a AMERICAN FREIGHT franchise?
The total investment to open a AMERICAN FREIGHT franchise ranges from $497K – $943K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do AMERICAN FREIGHT franchise owners earn?
According to Item 19 of the AMERICAN FREIGHT FDD, the average gross sales per unit is $2.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is AMERICAN FREIGHT's franchise failure rate?
SBA 7(a) loan charge-off data is not available for AMERICAN FREIGHT (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many AMERICAN FREIGHT franchise locations are there?
As of their most recent FDD filing, AMERICAN FREIGHT has 260 total units in the United States, including 0 franchised units and 255 company-owned units. 4 new units were opened in the latest reporting year.
Is AMERICAN FREIGHT a good franchise to buy?
FranchiseVerdict rates AMERICAN FREIGHT as a A-grade franchise with a risk score of 46 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.