Great Steak Franchise FDD, Profits & Costs (2025)
Great Steak, renowned as the top cheesesteak franchise in the United States, has been dishing out quintessential American cheesesteaks since it first opened its doors in 1982.
The brand has effectively tapped into the increasing demand for genuine, hearty fare, especially cheesesteaks, which have experienced a notable rise in popularity across the nation.
What sets Great Steak apart is its straightforward approach, concentrating on cheesesteaks that resonate with a wide range of consumers, including millennials who value the brand’s dedication to premium ingredients and the ability to personalize their meals.
Great Steak began offering franchise opportunities in the same year it was established, with its corporate headquarters situated in Scottsdale, Arizona, as part of the Kahala Brands family.
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Initial Investment
How much does it cost to start a Great Steak franchise? It costs on average between $138,000 – $636,000 to start a Great Steak franchised restaurant.
This includes expenses for construction, equipment, inventory, and initial operating costs. The total investment varies based on several factors, such as the restaurant format, location, and whether the franchisee opts to lease or purchase the property.
| Type of Expenditure | Traditional Great Steak Restaurant Amount (Low – High) | Non-Traditional Great Steak Restaurant Amount (Low – High) |
|---|---|---|
| Initial Franchise Fee | $14,000 – $30,000 | $5,600 – $9,500 |
| Lease Review Fee | $0 – $2,500 | $0 – $2,500 |
| Rent/Security Deposit (for 3 months) | $12,000 – $20,000 | $6,000 – $20,000 |
| Travel and Living Expenses (2 persons) while training | $2,500 – $5,000 | $2,500 – $5,000 |
| Real Estate | (Note 2) | (Note 2) |
| Architectural Fees | $10,000 – $18,000 | $5,500 – $18,000 |
| Leasehold Improvements | $42,000 – $280,000 | $42,000 – $165,000 |
| Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels | $42,000 – $191,000 | $42,000 – $122,000 |
| Exterior Signage | $10,000 – $21,000 | $10,000 – $21,000 |
| Computer Hardware, Software (POS System) | $3,000 – $10,000 | $3,000 – $10,000 |
| PCI Compliance Costs | $150 – $1,300 | $150 – $1,300 |
| Opening Inventory (food and paper) | $2,500 – $7,000 | $2,500 – $7,000 |
| Business Insurance | $1,000 – $5,000 | $1,000 – $5,000 |
| Miscellaneous Opening Costs | $4,750 – $17,500 | $4,750 – $17,500 |
| Grand Opening Marketing | $10,000 | $5,000 |
| Depository Account | $3,000 | $3,000 |
| Additional Funds – 3 month initial period | $5,000 – $15,000 | $5,000 – $15,000 |
| TOTAL | $161,900 – $636,300 | $138,000 – $426,800 |
Average Revenue (AUV)
How much revenue can you make with a Great Steak franchise? A Great Steak franchised restaurant makes on average $542,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $838,000 yearly revenue for similar sandwich franchises. Below are a few Great Steak competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Great Steak Franchise Disclosure Document
Frequently Asked Questions
How many Great Steak locations are there?
As of the latest data, Great Steak operates a total of 25 locations, all of which are franchise-owned. There are no company-owned units within the brand, making it a fully franchised operation.
What is the total investment required to open a Great Steak franchise?
The total investment required to open a Great Steak franchise ranges from $138,000 to $636,000.
What are the ongoing fees for a Great Steak franchise?
As a Great Steak franchisee, you are required to pay a royalty fee which is the greater of 6% of your total gross sales or $400 per week. Additionally, there is a marketing fee set at 1% of your weekly gross sales, which contributes to the brand’s Advertising Fund.
What are the financial requirements to become a Great Steak franchisee?
To qualify as a Great Steak franchisee, you should have a minimum net worth of $250,000 and liquid capital of at least $120,000. These financial prerequisites ensure that potential franchisees possess the necessary resources to support the initial investment and ongoing operations of a Great Steak restaurant.
How much can a Great Steak franchise owner expect to earn?
The average gross sales for a Great Steak franchise are approximately $0.54 million per location. Assuming a 15% operating profit margin, $0.54 million yearly revenue can result in $81,000 EBITDA annually.
Who owns Great Steak?
Great Steak franchise is owned by Kahala Brands, a prominent franchisor that manages a diverse portfolio of restaurant brands. Kahala Brands specializes in supporting franchise operations through comprehensive training, marketing, and operational support.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
