• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Hub
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

How Much Is a Steak ‘n Shake Franchise? (Detailed Franchise Costs)

Last updated on June 21, 2022 by Franchise Chatter Leave a Comment
in Franchise Costs, Hamburger Franchise



Learn Which Franchises Can Make You Rich

Steak ‘n Shake Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

In-Line Quick Service Format

1.  Franchise Fee:  $25,000

  • The Franchise Fee is nonrefundable unless you identify a location within 70 days of executing the Franchise Agreement and you and Steak ‘n Shake fail to agree on a location for your Restaurant within 135 days of the execution of the Franchise Agreement.
  • In that event, Steak ‘n Shake will refund you 75% of the Franchise Fee paid, it will retain the remaining 25% as compensation for services provided, and the Franchise Agreement will terminate.

2.  Real Estate/Rent:  Not Included

  • In-line quick service locations are typically leased premises. Rent costs vary significantly depending on various factors including demand for locations in a particular market, the property location, accessibility, and area demographics.
  • Additionally, rent credit or allowances for tenant improvements provided by the landlord may also impact the rent you will pay.

3.  Construction Management Fee:  $0 to $4,000


The Very Best of Franchise Chatter



💰America’s Most Lucrative Franchises


💰Franchises Ranked by Average Revenues


💰Franchises Ranked by Average Profits


💰Franchise Winners, Survivors and Losers


🔐Subscribe Now (If You Haven’t Already)


4.  Site Improvements:  $0 to $21,000

5.  Building or Leasehold Improvements:  $80,000 to $727,000

  • Building improvements must strictly conform to Steak ‘n Shake’s brand specifications unless otherwise noted in writing. If the premises are leased, the lessor’s contribution toward the cost of construction, if any, may be a factor in your subsequent rental rate.
  • These costs will further vary based on building size, configuration and condition of premises, material construction and labor costs, logistical considerations, location, as well as any requirements and restrictions imposed by government agencies and landlord.
  • Steak ‘n Shake’s estimates are based on actual costs to construct 1,860 to 3,400 square feet quick-service locations pursuant to its franchisees’ most recent Restaurant openings. Rent credits or tenant improvement allowances, if any, provided by a landlord will impact the rent you pay.

6.  Furniture, Fixtures, Equipment, and Signage:  $307,000 to $374,000

  • Furniture, Fixtures, and Equipment (including IT & Signage) costs may vary significantly based upon the size of the Restaurant, possible reuse of existing equipment, labor and material costs, installation costs, geographic location, requirements imposed by local government agencies, and shipping from suppliers.
  • Steak ‘n Shake assists with the purchase of most IT equipment so you benefit from its volume discount.
  • These estimates also include the initial fees paid to Steak ‘n Shake and expenses paid directly to third-party vendors for the following: menu board and order confirmation board, headsets, in-store music, and installation services.

7.  Pre-Opening Expenses:  $5,000 to $10,000

  • These figures are estimates only for the following expenses you will incur prior to your opening: uniforms, advertisements for recruiting, and food costs during training.
  • Due to wide variances, these estimates exclude the following: labor, benefits and payroll costs associated with your management and hourly employees’ time in training or during the period prior to your Restaurant opening; health insurance, property insurance, general liability insurance, and worker’s compensation insurance premiums; security deposits for a lease; utility deposits; and sales tax bonds (may be required by taxing authorities).

8.  Additional Funds for 3 Months:  $15,000 to $20,000


🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💵How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


  • This range includes certain on-going monthly expenses you may incur during the first 3 months of operation, including fees paid to Steak ‘n Shake and third parties after the Restaurant opens for surveillance cameras, broadband internet service, software and music licensing fees, IT support center, hardware maintenance and repair, and drive-thru headset maintenance and repair.
  • These figures are estimates, and Steak ‘n Shake cannot guarantee that you will not have greater expenses. These amounts do not include rent, any estimates for debt service on loans that you obtain to finance your business, payroll, inventory expenses, or additional working capital.

9.  Inventory and Supplies for Opening:  $6,000 to $15,000

10.  Training Expenses (travel, meals, and lodging only; wages excluded):  $16,000 to $55,000

  • Steak ‘n Shake does not charge you for the initial standard training it provides. These expenses do not include the salary and payroll expenses for your management and hourly staff or franchise owners.
  • These estimates are based on the travel, meals, and lodging you will incur while your managers are in training. Your cost may vary depending upon how many individuals you train and the distance you and your employees must travel to the certified training restaurant Steak ‘n Shake designates.
  • The low end assumes that you are located in very close proximity to Steak ‘n Shake’s certified training restaurant and no airfare meals or lodging will be required for management training other than your general manager and restaurant manager attending a new restaurant opening and traveling to Steak ‘n Shake’s San Antonio or Indianapolis office for a portion of the training.
  • The high end range assumes that your management will be traveling to a certified training restaurant and includes the estimated cost for airfare, transportation, meals, and lodging.

11.  Architectural, Civil Engineering, and Other Professional Fees and Permits:  $0 to $85,000

  • These expenses may vary depending on your experience and your individual need for advice from architects, engineers, and related development professionals and depending on the duration and complexity of developing your location and negotiations to finalize a lease or purchase.
  • These expenses do not include any costs you may incur for financing.
  • The high end of the range includes the $1,000 Plan Review Fee that Steak ‘n Shake charges for its or its affiliate’s review of site specific modifications made to its prototype plans.
  • The cost of a permit to sell beer and wine applies only to quick-service locations where such service is sought and will vary significantly by location.
  • Prior to acquiring a site, you should research the legal requirements and design criteria as may be required by public ordinance or private covenants limiting or restricting such items as building design, colors and finishes, exterior lighting, signage, site design, and similar leasehold or fee improvements.
  • The low end of the range for a quick-service location assumes that beer and wine will not be sold so a permit will not be required.

12.  Impact and Tap Fees:  $0 to $10,000

  • Impact, tap, and similar infrastructure or impact type fees vary significantly by area and site. You are strongly encouraged to consult with a local civil engineer or real estate attorney to accurately assess and determine all such costs applicable to any particular location.

13.  Grand Opening Marketing Expenses:  $0 to $15,000

  • In connection with the grand opening of the Restaurant, you may, but are not required to, conduct a grand opening marketing and advertising campaign in accordance with a plan approved by Steak ‘n Shake.
  • Grand opening expenditures which Steak ‘n Shake approves will be credited towards the local portion of your Marketing Fee to be paid during the first year following your Restaurant opening.

14.  Extension Fee:  $0 to $10,000


🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💵How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


  • The Extension Fee only applies if you will miss the Required Opening Date established by your Franchise Agreement and you seek to extend that deadline.
  • By paying an Extension Fee of $5,000, you may extend the Required Opening Date for a period of 90 days. You are only entitled to 2 extensions of the Required Opening Date.

15.  Total:  $454,000 to $1,371,000

  • These figures are estimates based upon Steak ‘n Shake’s franchisees’ reported costs, quotes from vendors, and Steak ‘n Shake’s experience in building and opening restaurants, and Steak ‘n Shake cannot guarantee that you will not have additional expenses starting the business.

Freestanding Quick Service Format

  • Total:  $1,480,895 to $1,720,895

Non-Traditional

  • Total:  $316,000 to $715,000

Roadside Format

  • Total:  $705,000 to $1,199,497

🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator





Tagged as: Steak 'n Shake

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: AlphaGraphics Uses Brand Refresh to Showcase Evolution of the Franchise (Q&A with Ryan Farris, COO and President)

Next post: FDD Talk 2021: Sonic Drive-In Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Primary Sidebar

⚠️Buying a Franchise on Your Own Can Be Overwhelming

✅ Get the guidance and support you need every step of the way – from funding to franchisor introduction, due diligence, franchisee validation, discovery day, territory selection, and signing – from an experienced franchise broker at no cost to you.

✅ Fill out this form and a specialist from the Franchise Brokers Association will reach out to you.

🚀How to Find, Vet and FUND a Good Franchise (Webinar)

✅ Is Franchising a Path for You? – Oct. 6 (Fri.), 11 a.m. EST

✅ So You Want to Build an Empire? – Oct. 10 (Tues.), 4 p.m. EST

✅ Register Now to Get Free Access to Recordings of Both Webinars

Register Now

⭐️Franchise Chatter is reader-supported. We may receive a commission for leads generated from affiliate links and banners on our site.

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

🏆Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Property Management Franchises

Best Real Estate Franchises

Best Flooring Franchises

Best Acai Bowl Franchises

Best Poké Bowl Franchises

Best Donut Franchises

Best Kitchen and Bath Remodeling Franchises

Best Window Covering Franchises

Best Plumbing Franchises

Best Home Inspection Franchises

Best Garage Franchises

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

🚀Daily FDD Talk Posts

Temporary Wall Systems Franchise

Bio-One Franchise

Furry Land Franchise

McDonald’s Franchise

Wag N’ Wash Franchise

Massage Envy Franchise

AlphaGraphics Franchise

Waxing the City Franchise

Window Gang Franchise

Pokeworks Franchise

Rita’s Italian Ice Franchise

Auntie Anne’s Franchise

Fuzzy’s Taco Shop Franchise

Twin Peaks Franchise

The DRIPBaR Franchise

Hounds Town USA Franchise

Big Frog Custom T-Shirts & More Franchise

Home Helpers Franchise

Scooter’s Coffee Franchise

Mosquito Joe Franchise

Capriotti’s Franchise

Bonchon Franchise

Home Clean Heroes Franchise

LaundroLab Franchise

Kiddie Academy Franchise

Chick-fil-A Franchise

Planet Fitness Franchise

Ace Handyman Services Franchise

IMAGE Studios Franchise

Culver’s Franchise

Two Men and a Truck Franchise

Popeyes Louisiana Kitchen Franchise

Cabinet IQ Franchise

Screenmobile Franchise

Cold Stone Creamery Franchise

PJ’s Coffee of New Orleans Franchise

ZIPS Cleaners Franchise

The Goddard School Franchise

WaveMAX Laundry Franchise

Jamba Franchise

GameDay Men’s Health Franchise

Property Management Inc. Franchise

All Dry Services Franchise

Storm Guard Roofing and Construction Franchise

Papa Murphy’s Franchise

Wireless Zone Franchise

Domino’s Pizza Franchise

Assisting Hands Home Care Franchise

Fastest Labs Franchise

Units Moving and Portable Storage Franchise

Freddy’s Frozen Custard & Steakburgers Franchise

KFC Franchise

Franchise Chatter © 2023