Steak N Shake Franchise Cost, Revenue & Review 2026
- Investment
- $259K – $998K
- Disclosed sales
- partial, no system average
- SBA charge-off
- 15.2%
- on 38 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Steak N Shake franchise requires a total initial investment of $259K – $998K, including a $10K franchise fee. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 15.2% charge-off rate across 38 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $259K – $998K
- 10th pct Service Resta…
- Avg gross sales
- N/A
- Projection
- Royalty
- Set by a formula
- Units
- 387
- 36th pct Service Resta…
- SBA charge-off
- 15.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $259K – $998K including a $10K franchise fee.
- RETURNSThe figure shown was average annual FRANCHISE PARTNER EARNINGS — owner profit retained under a profit-share programme on existing company restaurants (printed p.51), not restaurant sales. This FDD contains no 'average unit volume', 'AUV' or 'average sales' figure anywhere; 'gross sales' appears once, as a fee definition inside the franchise agreement.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 15.2% across 38 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -5 franchised outlets in the latest year (Item 20).
- DATAItem 19 reports retained profit rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Steak n Shake Enterprises, Inc.
- Parent company
- Steak n Shake Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Biglari Holdings Inc.
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- Founder, Chairman and Chief Executive Officer of Biglari Holdings
- Sardar Biglari
- Incorporated in
- Indiana
- HQ
- 107 South Pennsylvania St., Suite 400, Indianapolis, Indiana 46204
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $270.0M
- vs $240.8M prior year
Overview
About
Franchise Partner Program for existing Company-owned Steak 'n Shake quick-service restaurants specializing in premium burgers and milkshakes; Franchise Partners operate a single existing Company-owned restaurant under a profit-sharing economic model rather than the standard full-investment franchise.
- CEO
- Sardar Biglari
- Headquarters
- Indiana
- Founded
- 1939
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost is about typical for a full-service restaurants franchise (near the category median).
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $239K | $833K |
| Equipment, build-out, other | $11K | $154K |
| Total initial investment | $259K | $998K |
Source: Steak N Shake 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $259K – $998K
- Top 40% of category vs category
- Liquid capital req'd
- $239K – $833K
- Top 40% of category vs category
- Franchise fee
- $10K
- Top 40% of category vs category
- Royalty
- Not a simple percentage royalty. Franchise Partner pays a…
- Ad fund
- 10.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 10.0% of gross sales |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Steak N Shake is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Steak N Shake unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
The figure shown was average annual FRANCHISE PARTNER EARNINGS — owner profit retained under a profit-share programme on existing company restaurants (printed p.51), not restaurant sales. This FDD contains no 'average unit volume', 'AUV' or 'average sales' figure anywhere; 'gross sales' appears once, as a fee definition inside the franchise agreement.
vs Full-Service Restaurants medians
How Steak N Shake Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 387
- Opened
- N/A
- Last reporting year
- Closed
- N/A
- Company-owned
- 126
- Corporate units in the system
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
Where the owners are · Item 20 owner list
92 current owners across 17 states.
- MO 28
- GA 15
- IL 9
- MS 8
- CA 6
- KY 6
- AR 5
- FL 3
- MI 3
- AL 2
- IA 1
- MD 1
- +5 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 38
- Loan volume
- $44.1M
- Median loan
- $1.1M
- 50th percentile
- Charge-off rate
- 15.2%
- on 38 loans · 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)
- 84.8%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 24
- Defaults
- 5
- Typical loan rate
- 5.9%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7225
- Jobs supported
- 1,427
- 3.2 per loan
- Lender concentration
- 11%
- top lender's share
Vintage analysis
Steak N Shake charge-off rate by loan vintage
Top lenders financing Steak N Shake franchisees
Showing 3 of 24 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Steak N Shake from SBA 7(a) FOIA data.
- Principal loss rate
- 8.5%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 5.87%
- Avg chargeoff amount
- $749K
- Lender concentration
- 10.5%
- Job velocity
- 3.2 per $100K
- Jobs supported
- 1,427
Top SBA lendersTop lender holds 11% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 4 | N/A | N/A | |
| 2 | 3 | N/A | N/A | |
| 3 | 3 | N/A | N/A | |
| 4 | 3 | N/A | N/A | |
| 5 | 2 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| GAGeorgia | 7 | 0 | 0.0% |
| OKOklahoma | 5 | 0 | 0.0% |
| NCNorth Carolina | 4 | 0 | 0.0% |
| TNTennessee | 3 | 0 | 0.0% |
| ALAlabama | 2 | 1 | 50.0% |
| INIndiana | 2 | 0 | 0.0% |
| KYKentucky | 2 | 0 | 0.0% |
| MSMississippi | 2 | 0 | 0.0% |
| OHOhio | 2 | 2 | 100.0% |
| SCSouth Carolina | 2 | 0 | 0.0% |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Renewal term | 1 year |
|---|---|
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Governing law | Indiana |
| Litigation count | 4 |
Items 10, 11
Training & Operations
- Classroom training
- 55 hrs
- On-the-job training
- 185 hrs
- Training location
- Certified Training Restaurant and Slated Store (in-restaurant)
- Site selection
- franchisor (existing Company-owned restaurant assigned to Franchise Partner)
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
92 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Steak N Shake franchise?
The total investment to open a Steak N Shake franchise ranges from $259K – $998K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Steak N Shake franchise owners earn?
Item 19 of the Steak N Shake FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Steak N Shake?
Steak N Shake is franchised by Steak n Shake Enterprises, Inc.. Its parent company is Steak n Shake Inc.. The ultimate parent named in the FDD is Biglari Holdings Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Steak N Shake FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Steak N Shake FDD and qualifies whose outlets they describe.
What is Steak N Shake's franchise failure rate?
Based on SBA 7(a) loan data, Steak N Shake has a charge-off rate of 15.2% across 38 loans, meaning 15.2% 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 Steak N Shake franchise locations are there?
As of their most recent FDD filing, Steak N Shake has 387 total units in the United States, including 261 franchised units and 126 company-owned units.
Is Steak N Shake a good franchise to buy?
FranchiseVerdict rates Steak N Shake as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
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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.