Beef-a-Roo Franchise FDD, Profits & Costs (2025)
Beef-a-Roo is a fast-casual dining franchise that first opened its doors in 1967 in Rockford, Illinois, created by Dave DeBruler and Jean Vitale. What began as a beloved local eatery has grown into a franchise concept with broad market potential. The company, still based in Rockford, officially launched its franchising program in 2022.
The menu showcases an all-American lineup featuring classic burgers, slow-cooked beef sandwiches, crisp salads, rich milkshakes, and the brand’s famous seasoned fries. Its reputation has been built on consistently high-quality ingredients, reliable flavors, and a welcoming, family-oriented atmosphere.
To accommodate different markets and investment levels, Beef-a-Roo provides multiple development options, from full-scale restaurant models to innovative modular container units designed to lower startup costs and speed up openings.
Initial Investment
How much does it cost to start a Beef-a-Roo franchise? It costs on average between $467,000 – $1,384,000 to start a Beef-a-Roo franchised restaurant.
This covers expenses for construction, equipment, inventory, and initial operating needs. The total investment can vary based on several factors, such as whether you open a traditional restaurant or a modular container unit, the market location, and if you decide to lease or purchase the property.
Beef-a-Roo offers 4 types of franchises:
| Franchise Model | Initial Investment |
|---|---|
| Beef-a-Roo Traditional Model | $754,200 to $1,383,500 |
| Beef-a-Roo Drive-Thru Model | $526,700 to $973,000 |
| Beef-a-Roo End-Cap Model | $466,700 to $1,003,500 |
| Beef-a-Roo Conversion Model | $479,200 to $953,000 |
We are summarizing below the main costs associated with opening a Beef-a-Roo Traditional Model. For more information on costs required to start a Beef-a-Roo franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $49,500 |
| Rent (one month) | $15,000 – $25,000 |
| Lease Security Deposit | $15,000 – $25,000 |
| Utilities | $500 – $1,500 |
| Architectural and Engineering | $15,000 – $25,000 |
| Construction Management Services | $10,000 – $15,000 |
| Leasehold Improvements | $250,000 – $750,000 |
| Furniture, Fixtures, and Equipment | $320,000 – $323,000 |
| Computer Systems | $15,000 – $25,000 |
| Insurance (12 months) | $1,500 – $5,000 |
| Signage | $10,000 – $30,000 |
| Office Expenses | $100 – $500 |
| Inventory | $12,000 – $25,000 |
| Licenses and Permits | $2,000 – $10,000 |
| Dues and Subscriptions | $100 – $1,000 |
| Market Introduction Program | $7,500 – $10,000 |
| Professional Fees (lawyer, accountant, etc.) | $1,000 – $3,000 |
| Travel, Lodging and Meals for Training | $5,000 – $10,000 |
| Additional Funds (first three months) | $25,000 – $50,000 |
| Total | $754,200 – $1,383,500 |
Average Revenue (AUV)
How much revenue can you make with a Beef-a-Roo franchise? A Beef-a-Roo franchised restaurant makes on average $3,004,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Beef-a-Roo locations are there?
As of the latest available data, Beef-a-Roo operates about 20 locations in total across the United States.
What is the total investment required to open a Beef-a-Roo franchise?
The total investment required to open a Beef-a-Roo franchise ranges from $467,000 to $1,384,000.
What are the ongoing fees for a Beef-a-Roo franchise?
Beef‑a‑Roo franchisees pay an ongoing royalty fee of approximately 6% of gross sales, along with a marketing or advertising fee of around 1% of gross sales.
What are the financial requirements to become a Beef-a-Roo franchisee?
To qualify for a Beef-a-Roo franchise, interested candidates must meet specific financial thresholds: they should possess a minimum net worth ranging between $500,000 and $1,000,000, and maintain liquid capital of approximately $100,000 to $500,000
How much can a Beef-a-Roo franchise owner expect to earn?
The average gross sales for a Beef-a-Roo franchise are approximately $3.0 million per location. Assuming a 15% operating profit margin, $3.0 million yearly revenue can result in $450,000 EBITDA annually.
Who owns Beef-a-Roo?
The Beef-a-Roo franchise is owned by Next Brands and Development, a franchise development company that acquired the brand in 2019 to expand it nationally while keeping its Rockford, Illinois roots.
Disclaimer
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