American Freight Franchise FDD, Profits & Costs (2025)
American Freight is a U.S. retail franchise known for providing a wide selection of furniture, mattresses, and home appliances at affordable prices. The company was founded in 1994 by Steve Belford in Lima, Ohio, originally operating as American Freight Furniture & Mattress, and is currently based in Delaware, Ohio.
After being acquired by Franchise Group, Inc., American Freight began offering franchise opportunities in 2020. The brand’s merger with the former Sears Outlet chain fueled its rapid expansion, helping it reach more than 300 stores across the United States.
The franchise has built its reputation on delivering value and convenience. With same-day delivery options, competitive pricing, and flexible financing, American Freight appeals to budget-conscious customers seeking quality home furnishings.
Initial Investment
How much does it cost to start a American Freight franchise? It costs on average between $497,000 – $943,000 to start a American Freight franchised center.
This includes expenses related to showroom construction or renovation, furniture and appliance displays, delivery vehicles, and initial operating funds. The total investment varies depending on factors such as the store size, market location, and whether the franchisee leases or owns the retail property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $49,900 |
| Leasehold Improvements | $0 – $100,000 |
| Furniture, Fixtures and Equipment | $25,000 – $45,000 |
| Delivery Truck | $5,000 – $7,000 |
| Signage | $10,000 – $34,000 |
| Three Months’ Rent | $45,000 – $75,000 |
| Security Deposit | $0 – $30,000 |
| Opening Inventory and Supplies | $250,000 – $350,000 |
| Grand Opening Advertising | $10,000 |
| Training Expenses | $2,000 – $12,000 |
| Miscellaneous Opening Costs | $0 – $10,000 |
| New Store Setup Costs | $25,000 – $45,000 |
| Additional Funds (3-month period) | $75,000 – $175,000 |
| Total | $496,900 – $942,900 |
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Frequently Asked Questions
How many American Freight locations are there?
As of the most recent data, American Freight operates approximately 357 locations across the United States.
What is the total investment required to open a American Freight franchise?
The total investment required to open a American Freight franchise ranges from $497,000 to $943,000.
What are the ongoing fees for a American Freight franchise?
American Freight franchisees pay an ongoing royalty fee of 5% of gross sales. In addition, they contribute about $7,100 per month toward national and local marketing efforts.
Who owns American Freight?
The American Freight franchise is owned by Franchise Group, Inc., a U.S.-based holding company that manages multiple retail and service brands.
Disclaimer
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