How Much Does a American Freight Franchise Cost?
Data from the 2023 Franchise Disclosure Document
Investment Summary
Total Investment
$497K – $943K
Franchise Fee
$50K
Royalty
5.0%
Ad Fund
$1,638.46 per week; additional fees up to 5% of Gross Sales if monthly sales exceed $142,000
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for American Freight is $50K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a American Freight franchise requires a total investment of $497K – $943K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $75K to $175K.
Ongoing Costs
Beyond the initial investment, American Freight franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Gross Sales). The ad fund contribution is: $1,638.46 per week; additional fees up to 5% of Gross Sales if monthly sales exceed $142,000. There is also a technology fee of $346.
Net Worth & Liquid Capital Requirements
American Freight requires working capital of $75K – $175K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
American Freight does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View American Freight?
SBA Loans Issued
2
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. American Freight has 2 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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