Shake Shack Franchise FDD, Profits & Costs (2025)
Shake Shack began as a hot dog cart in 2001 in New York City’s Madison Square Park and officially opened its first permanent kiosk in 2004.
Headquartered in New York City, Shake Shack offers a menu of burgers, hot dogs, shakes, and fries, emphasizing premium ingredients and sustainability.
The franchise has expanded rapidly and has over 500 locations across 33 states in the U.S. and 18 countries. Shake Shack has been growing its presence through both corporate-owned and franchised/licensed locations and is actively expanding globally.
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 Shake Shack franchise? Shake Shack does not offer franchise opportunities, as all of its locations are company-owned.
Therefore, it is not possible to start a Shake Shack franchise, and there is no associated cost for franchising with the company.
For similar burger franchises, however, the initial investment is on average $1,456,000.
In comparison, for example, McDonald’s (a Global fast-food chain franchise brand) requires an investment upfront of $521,000 up to $2,503,000 for a franchised location.
Here are a few competitors of Shake Shack in comparison and their initial investment:
Average Revenue (AUV)
How much revenue can you make with a Shake Shack franchise? Since Shake Shack does not franchise its stores and all locations are company-owned, Shake Shack does not publish a Franchise Disclosure Document. Therefore, it does not disclose the average revenue of its stores.
However, a similar burger franchise makes on average $1,548,000 in revenue (AUV) per year. For example, a McDonald’s franchised restaurant makes on average $3,505,000 in revenue per year.
Here are a few burger franchise franchises in comparison and their yearly revenue:
Frequently Asked Questions
How many Shake Shack locations are there?
As of the latest data, there are 358 Shake Shack locations in the United States, with New York having the highest number of locations at 55. The total number of Shake Shack restaurants globally surpassed 500 by the end of 2023, spanning across 33 states in the U.S. and 18 countries.
What is the total investment required to open a Shake Shack franchise?
Shake Shack does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a Shake Shack franchise.
However, the total investment required to open a franchised restaurant similar to the Shake Shack franchise ranges from $156,000 to $6,867,000.
What are the ongoing fees for a Shake Shack franchise?
Since Shake Shack does not offer franchises and all stores are company-owned, the ongoing fees such as royalty fees or advertising fees associated with franchising the brand are not readily available.
Yet, similar burger franchises in the industry charge an average of 4% in royalty fees and 5.5% in advertising fees ( e.g. Hardee’s).
What are the financial requirements to become a Shake Shack franchisee?
All Shake Shack locations are company-owned, and the brand does not offer opportunities for independent ownership or franchising. Therefore, it is not possible to meet any financial requirements or apply to become a franchisee with Shake Shack.
For burger franchises similar to Shake Shack, financial requirements include: the average minimum net worth required to become a franchisee is typically around $1 million to $2.5 million, while the average liquid capital requirement ranges from $500,000 to $1 million. These figures can vary based on the specific franchise brand and location.
How much can a Shake Shack franchise owner expect to earn?
Since Shake Shack is entirely company-owned and does not operate as a franchise, there is no earning disclosure for a Shake Shack franchise.
Now, assuming the average gross sales for a burger franchise similar to a Shake Shack franchise of $1,548,000 per store. And assuming a 15% operating profit margin, $1,548,000 yearly revenue would result in about $232,000 operating profit per year.
Who owns Shake Shack?
Shake Shack is a publicly traded company, listed on the New York Stock Exchange under the ticker symbol “SHAK.”
The company is not owned by a single individual but by its shareholders, with the largest stakeholders being institutional investors, executives, and members of the public who own shares. Randy Garutti serves as the CEO of Shake Shack.
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.
