About Famous Dave's Unit Franchise
Famous Dave's is a full service barbecue restaurant franchise known for its award winning ribs, brisket, and smoked meats.
Backed by BBQ Holdings, Inc., the brand has been franchising since 1998 and has earned numerous barbecue competition awards, establishing itself as one of the premier names in American barbecue dining.
The franchise fee is $45,000.
Famous Dave's Unit Franchise Cost & Fees
Minimum Investment
$71K
Average Investment
$3.1M
Maximum Investment
$6.1M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 5% of Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 1% of Revenues (Marketing Fund Fees) + Minimum of 1.5% of Revenues (Local Advertising) | National brand fund |
| Total Investment Range | $70,500 – $6,120,750 | Includes build-out, inventory, working capital |
The investment range of $71K–$6.1M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Revenues) and marketing fee (Currently 1% of Revenues (Marketing Fund Fees) + Minimum of 1.5% of Revenues (Local Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee | $10,000 | $45,000 |
| Leasehold Improvements (3) | $0 | $1,600,000 |
| Land, Building and Construction (4) | $0 | $3,200,000 |
| Travel and Living Expenses for You and Your Management Staff During Training (5) | $10,000 | $40,000 |
| Reimbursement of Expenses for Opening Team | $25,000 | $100,000 |
| Furniture, Fixtures, Décor, and Equipment (6) | $0 | $650,000 |
| Architectural and Engineering Fees | $0 | $170,000 |
| Signs | $10,000 | $75,000 |
| Liquor License Costs (7) | $500 | $75,000 |
| Site Model Report Fee | $0 | $750 |
| Restaurant Lease Payments - 3 Months (8) | $0 | $45,000 |
| Employee Salaries - 3 Months (9) | $0 | $95,000 |
| Miscellaneous (10) | $5,000 | $10,000 |
| Grand Opening Celebration (11) | $5,000 | $25,000 |
| Additional Funds - 3 Months [these figures have not been offset by operating revenues] (12) | $5,000 | $15,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | 50% of the Initial Fee in the then-current standard Franchise Agreement |
| Audit Fee | Estimated to range from $1,000 to $10,000 |
| Collection Costs | Amount incurred by Famous Dave’s to collect unpaid fees |
| Interest Charges | The lesser of 18% per annum or the maximum legal rate allowable by applicable law |
| Additional Training | Then-current Per Diem Training Fee (currently $750 per day) for each trainer provided by Famous Dave, plus reimbursement for Travel Expenses (estimated to range from $100 to $1,000 per trainer) |
| Remodeling Costs | Estimated to range from $75,000 to $400,000 each time you remodel |
| Third-Party Performance Measurement Evaluations | Up to one-half of the cost of set programs, estimated to range from $300 to $600 per month, per unit |
| Costs, Expenses, and Attorneys’ Fees | Variable |
| Document Administration Fee | $500 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Seven weeks (35 shifts) |
| Classroom Training | 75 |
| On-the-Job Training | 280 |
| Training Location | Certified training location designated by Famous Dave’s |
| Additional Training | Famous Dave’s provides additional training if a new Management Staff member is hired and has not completed the training program, or if the Restaurant fails to meet performance standards, or if requested by the franchisee. Franchisee pays a Per Diem Training Fee for trainers and reimburses travel expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | A geographical area surrounding the Franchised Location, the specific size of which will be determined by Famous Dave’s with reference to market research materials and the service model you open. |
| Description | The precise boundaries of your Designated Area may be identified with reference to (1) a radius, roadways, natural and/or man-made landmarks, or any other identifiers Famous Dave’s chooses; or (2) an area determined by Famous Dave’s in its sole business judgment if Famous Dave’s believes the requirements noted above do not apply, such as in more rural market areas. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One additional period of 10 years |
| Renewal Fee | 50% of the Initial Fee in the then-current standard Franchise Agreement (Reacquisition Fee) |
| Renewal Conditions | Franchisee must give 180 days’ notice, comply with all material terms and conditions, pay all monetary obligations, agree to remodel the Franchised Location, have the right to occupy the location, ensure management staff are retrained, and sign the then-current standard Franchise Agreement. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Franchisee must provide 45 days written notice, pay all money owed, agree to observe all applicable provisions, sign a general release, pay the Assignment Fee, ensure the assignee meets franchisor standards, signs required legal agreements, acquires valid licenses, completes training, and completes required remodeling and upgrades. |
| Termination for Cause | Famous Dave’s has the right to immediately terminate the agreement for various breaches, including conviction of a crime affecting the business, insolvency, abandonment, failure to provide financial records, material impairment of goodwill (with 24-hour cure), repeated violations (three or more times in 12 months), providing false information, failure to obtain licenses, failure to open by the required date, ongoing financial impairment, eviction, or trademark misuse. |
| Non-Compete Period | During the term of the Franchise Agreement and for a period of 12 months after termination or expiration. |
| Non-Compete Details | During the term, franchisee may not participate in any food service business that Famous Dave’s determines serves the same general range of consumer demand. Post-term, for 12 months, franchisee may not participate in a similar food service business within five miles (or ten miles for ghost/cloud kitchens) of the franchised location or any other Famous Dave’s® Restaurant or granted territory. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Operating Partner must have at least a 20% ownership interest in the franchisee entity and participate full time in the operation of the Famous Dave’s® Restaurant. If an Area Development Agreement requires six or more restaurants, a Multi-Unit Manager may be employed full-time instead of the Operating Partner, without an ownership interest requirement. All management staff must successfully complete training. |
| Required Suppliers | Famous Dave’s is the only approved supplier for services related to the preparation of the Site Model Report for your Restaurant. In the future, Famous Dave’s or an affiliate may be an approved supplier of products and services. |
| Supply Restrictions | Franchisees must purchase proprietary sauces, seasonings, spices, food, food items, disposable and tabletop items, and recipe ingredients from manufacturers or producers approved by Famous Dave’s, including Sysco Corporation or other designated vendors. Famous Dave’s reserves the right to limit the number of approved suppliers. |
| Franchisor Revenue from Suppliers | Famous Dave’s reserves the right to receive discounts, rebates, allowances, and other consideration from suppliers of products and services as a result of franchisee purchases. In some instances, Pepsi and Dr. Pepper paid amounts based on franchisee purchases of drink products, which Famous Dave’s passes along to franchisees as rebates. MTY USA and its subsidiaries derived $43,895,158 (7.5% of total consolidated revenue) from sales of products, services, and vendor allowances in 2023, with $32,499,276 from such vendors. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Famous Dave’s does not typically offer direct or indirect financing. Famous Dave’s does not know whether you will be able to obtain financing for all or part of your investment and, if so, the terms of the financing. Famous Dave’s does not typically guarantee your notes, leases, or other obligations. |
Famous Dave's Unit Franchise Earnings — Item 19
Average Revenue
$2.4M
Median Revenue
$2.5M
Revenue Range
$20K – $6.7M
Sample Size
119 units
Past financial performance does not guarantee future results. Individual results will vary.
Famous Dave's Unit Litigation & Risk Flags
Clean Litigation RecordFamous Dave's Unit has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Famous Dave's Unit System Growth
Total Units
116
Franchised
81
Company-Owned
35
Famous Dave's Unit currently operates 81 franchised locations and 35 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 4 | 0 | 126 |
| 2022 | 2 | 0 | 128 |
| 2023 | 0 | 12 | 116 |
Transfers: 0 | Closures: 23
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$580.3M
Net Income
$17.0M
Total Assets
$1459.4M
Audited by PricewaterhouseCoopers LLP for year ending November 30, 2023.
Famous Dave's Unit Franchise — FAQ
The total investment to open a Famous Dave's Unit franchise ranges from $70,500 to $6,120,750, per their Franchise Disclosure Document. This includes the initial franchise fee of $45,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Famous Dave's Unit charges a royalty fee of 5% of Revenues of gross sales, plus a Currently 1% of Revenues (Marketing Fund Fees) + Minimum of 1.5% of Revenues (Local Advertising) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Famous Dave's Unit Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Famous Dave's Unit to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Famous Dave's Unit franchise owners report average revenue of $2.4M and median revenue of $2.5M. This is based on a sample of 119 units. Past performance does not guarantee future results.
Famous Dave's Unit has been franchising since 1998. The FDD shows an investment range of $70,500-$6,120,750, a 5% of Revenues royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $45,000 and the total investment ranges from $70,500 to $6,120,750 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Famous Dave's Unit and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Famous Dave's Unit or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com