Food & Beverage FDD Analyzed

Famous Dave's®

Famous Dave's of America, Inc.

Minnetonka, MN Website FDD: March 28, 2025
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Investment Range

$68,500 - $4,510,750

Franchise Fee

$35,000

Royalty

5%

Marketing Fee

2.5%

Total Units

112

Median Revenue

$2,675,602/yr

AI Summary

Famous Dave's offers franchises for authentic, down-home barbecue restaurants, serving hickory-smoked ribs, brisket, and other comfort foods in a casual environment. Prospective franchisees can expect an initial investment ranging from $68,500 to $4,510,750, with a standard initial franchise fee of $35,000 and an ongoing royalty rate of 5% of weekly revenues. The system size saw a decline in 2023, closing 12 units (1 company-owned, 11 franchised) and opening none, resulting in a total of 112 restaurants. A notable risk for potential franchisees is the franchisor's extensive litigation history, which includes cases related to franchise disputes, misrepresentation, and statutory violations, some resulting in significant settlements.

Unit Growth

Last 5 years

2023

112

Initial Investment Breakdown

CategoryLowHigh
Initial Fee$8,000$35,000
Leasehold Improvements$0$1,600,000
Land, Building and Construction$0$3,200,000
Travel and Living Expenses for You and Your Management Staff During Training$10,000$40,000
Reimbursement of Expenses for Opening Team$25,000$100,000
+ 10 more categories (apply to see all)
TOTAL INVESTMENT$68,500$4,510,750

Financial Performance Data

Access detailed revenue metrics, expense breakdowns, and profitability data from the Item 19 Financial Performance Representation.

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Franchisee Contact Directory

112

Connect directly with existing franchise owners to learn about their experience, get real insights, and validate your decision.

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Is Famous Dave's® a Good Investment?

Based on the FDD data, here are key factors to consider when evaluating a Famous Dave's® franchise opportunity:

Potential Advantages

  • Growing network with 112 locations
  • Competitive royalty fee of 5%
  • Financial Performance Representation (Item 19) available for review

Considerations

  • Litigation history disclosed in FDD (review Item 3 carefully)
  • Higher initial investment requires significant capital

Disclaimer: This analysis is based on publicly available FDD data and should not be considered financial advice. Always consult with a franchise attorney and accountant before making any investment decision.

Frequently Asked Questions About Famous Dave's®

How much does a Famous Dave's® franchise cost?

The total initial investment for a Famous Dave's® franchise ranges from $68,500 to $4,510,750. This includes the franchise fee, equipment, inventory, real estate, and other startup costs as disclosed in the FDD.

What is the Famous Dave's® franchise fee?

The initial franchise fee for Famous Dave's® ranges from $35,000 to $35,000.

What are the ongoing fees for a Famous Dave's® franchise?

Famous Dave's® franchisees pay a 5% royalty fee and a 2.5% marketing/advertising fee on an ongoing basis.

How many Famous Dave's® franchise locations are there?

Famous Dave's® currently operates 112 franchise locations. This includes both franchised and company-owned units.

Quick Facts

Litigation Disclosed
Bankruptcy None
Protected Territory Yes
Item 19 (FPR) Available
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