Famous Dave’sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Famous Dave’s franchise requires a total initial investment of $71K – $6.1M, including a $45K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $2.4M[2]. SBA 7(a) loans show a 11.1% charge-off rate across 15 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $71K – $6.1M
- 2nd pct Service Resta…
- Avg gross sales
- $2.4M
- 23rd pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 116
- 42nd pct Service Resta…
- SBA default
- 11.1%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants 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
At 0.8x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Franchising since 1998. Systems this mature have refined operations and brand recognition.
Franchised units fell from 97 to 81 over 3 years. Investigate why operators are leaving.
16 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $71K – $6.1M including a $45K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.4M/year (median $2.5M).
- Verdict F (Bottom Quintile) with a risk score of 84/100. SBA loan charge-off rate of 11.1% across 15 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Famous Dave’s of America, Inc.
- Parent company
- BBQ Holdings, Inc.
- Incorporated in
- MN
- HQ
- 12701 Whitewater Drive, Suite 100, Minnetonka, Minnesota 55343-4164
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $263.7M
- vs $580.3M prior year
Overview
About
Franchisees operate casual dining barbecue restaurants serving smoked meats, ribs, and regional BBQ cuisine. Daily operations include food preparation, inventory management, staff supervision, customer service, and marketing compliance. Franchisees generate revenue through dine-in, takeout, and catering sales while managing P&L, lease obligations, and paying 5% royalties to the franchisor.
- CEO
- Eric Lefebvre
- Headquarters
- MN
- Founded
- 1994
- FDD year
- 2024
- States available
- 26
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $5K | $15K |
| Equipment, build-out, other | $21K | $6.1M |
| Total initial investment | $71K | $6.1M |
Source: Famous Dave’s 2024 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
$288K
12.0% margin
Unlevered ROIC
9%
EBITDA / total invested capital
Payback
10.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $71K – $6.1M
- Better than avg vs category
- Liquid capital req'd
- $5K – $15K
- Better than avg vs category
- Franchise fee
- $10K – $45K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $23K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $2.4M
- Per unit, per year
- Median gross sales
- $2.5M
- Item 19 type
- net_sales
- Sample size
- 119 units
- vs category median 13 · large
- Range (low → high)
- $20K→$6.7M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Full-Service Restaurants averages
How Famous Dave’s Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 116
- Opened
- 0
- Last reporting year
- Closed
- 11
- Turnover rate
- 9.5%
- Company-owned
- 35
- Corporate units in the system
- % franchised
- 70%
- vs corporate-owned
- Net growth (yr3)
- -12.0%
- Net unit change last year
- 3-yr CAGR
- -16.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 28 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.
Available to sell in · Item 12
- California
- Illinois
- Indiana
- Michigan
- New York
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 15
- Loan volume
- $19.3M
- Median loan
- $787K
- 50th percentile
- Charge-off rate
- 11.1%
- 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)
- 88.9%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Famous Dave's presents HIGH RISK due to contracting unit base (-12% YoY), substantial litigation history involving franchise law violations, absence of financial transparency, lack of territorial protection, and unfavorable unit economics amid system decline.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
BANKRUPTCY Lehr Restaurant Group, Lehr Real Estate (dba Dvincis Restaurant), Adam Lehr Our co-COO Adam Lehr in connection with his ownership of Lehr Restaurant Group and Lehr Real Estate filed a bankruptcy proceeding as debtor under Chapter 13 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 84 / 100 rating
- 01MINORDeclining unit count: 12% YoY contraction (116 units) suggests system-wide performance deterioration or franchisee exits
- 02HIGHSignificant litigation history: 16 concluded legal actions involving franchise law violations and misrepresentations indicate regulatory/compliance concerns and potential franchisor credibility issues
- 03MINORNo territory protection: Franchisees lack exclusive market rights, enabling cannibalization and direct franchisor competition
- 04MINORHigh investment-to-revenue ratio: $6.1M maximum investment against $2.4M average revenue yields unfavorable ROI prospects and extended payback periods
- 05MEDUndisclosed net income: Absence of Item 19 financial performance representation prevents realistic profitability assessment
- 06MINOR5% royalty on declining revenues: Franchisor revenue shrinking while franchisees bear fixed costs in contracting system
- 07MED10-year commitment term: Long lock-in period with limited exit flexibility in deteriorating franchise environment
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 | Designated Area |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | laws of the state in which the Restaurant is located |
| Litigation count | 16 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 280 hrs
- Training location
- On-site and corporate
- POS system
- integrated front-of-house and back-of-house POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: integrated front-of-house and back-of-house POS system
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Famous Dave’s · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Famous Dave’s franchise?
The total investment to open a Famous Dave’s franchise ranges from $71K – $6.1M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Famous Dave’s franchise owners earn?
According to Item 19 of the Famous Dave’s FDD, the average gross sales per unit is $2.4M. The median is $2.5M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Famous Dave’s's franchise failure rate?
Based on SBA 7(a) loan data, Famous Dave’s has a charge-off rate of 11.1% across 15 loans, meaning 11.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Famous Dave’s franchise locations are there?
As of their most recent FDD filing, Famous Dave’s has 116 total units in the United States, including 97 franchised units and 35 company-owned units.
Is Famous Dave’s a good franchise to buy?
FranchiseVerdict rates Famous Dave’s as a F-grade franchise with a risk score of 84 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.
For franchisors
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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.