Shake Shack Franchise FDD, Profits & Costs
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.
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 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.
What funding options are available for a Shake Shack franchise?
Most franchise buyers in Shake Shack’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Shake Shack franchise investment?
Payback periods for franchises in Shake Shack’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
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.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
Disclaimer
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