--- title: "Franchise Deep Dive: American Freight Franchise Cost, Fees, Profit and Data" url: https://burnaze.com/article/6f4f26f3-4a5a-45f8-859d-b2725a3b429e source: "1851 Franchise" original_url: https://1851franchise.com/franchise-deep-dive-american-freight-franchise-cost-fees-profit-and-data-2724597 category: "Retail" industry: "Retail" topics: ["Finance & M&A"] published: 2024-02-16T13:08:00.000Z modified: 2026-11-01T01:09:49.277Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/52e4bda0b4066e146f81d62e508c0ec73685.jpg --- # Franchise Deep Dive: American Freight Franchise Cost, Fees, Profit and Data **TL;DR:** American Freight, a value furniture franchise, operates over 360 locations across the U.S. and has experienced exponential growth since offering franchise opportunities in 2020. The brand has a business model focused on selling furniture to consumers through direct-to-consumer warehouse-style stores. *originally published in 1851 Franchise on 2024-02-16. [Read the original](https://1851franchise.com/franchise-deep-dive-american-freight-franchise-cost-fees-profit-and-data-2724597).* ## Key facts - American Freight has 360+ locations - Initial investment: $496,900 to $942,900 - Top stores' average gross sales: $4,519,995 ## Story ## Brand overview American Freight is a home furnishing franchise concept and one-stop shop for discount quality furniture, mattresses and appliances. The brand was founded in Lima, Ohio in 1994 and aims to help customers save money on quality home furniture. The brand began offering franchise opportunities in 2020, and since then has experienced exponential growth and become a nationally recognized brand with locations across 38 states and counting. As of December 2023, there are more than 360 American Freight locations across the United States. The brand is actively offering new franchise opportunities throughout the country and has more than 600 territories available. American Freight’s business model is focused on selling value furniture to consumers. As a result of its offerings, American Freight has become a leader in its segment. It operates direct-to-consumer, warehouse-style stores and boasts that it has served more than 5 million satisfied customers across its 360-plus stores nationwide. The brand also features same-day delivery on in-stock items, as well as free layaway options. American Freight describes its store model as being “easy to build, quick to open and highly scalable.” The average buildout is between 20,000 to 30,000 square feet, and the brand does not require new owners to have prior industry experience. “When you invest in American Freight, we invest in you,” according to the brand’s official site. “We provide our franchisees with world-class support and a network of mentors to lean on throughout the process. Our leadership consists of seasoned executives with more than 200 years of combined experience to assist franchisees in areas such as operations, marketing, real estate, merchandising and more.” According to the brand’s website, in 2022, the top American Freight franchisees saw average sales of $4,519,995 and an average net income of $400,474. ## Investment costs As of the publishing of this story, the initial investment required to open an American Freight franchise ranges from $496,900 to $942,900. This investment is broken down into the following costs: - Initial Franchise Fee: $49,900 - Leasehold Improvements: $0 to $100,000 - Furniture, Fixtures and Equipment: $25,000 to $45,000 - Delivery Truck: $5,000 to $7,000 - Signage: $10,000 to $34,000 - Three Months of Rent: $45,000 to $75,000 - Security Deposit: $0 to $30,000 - Opening Inventory and Supplies: $250,000 to $350,000 - Grand Opening Advertising: $10,000 - Training Expenses: $2,000 to $12,000 - Miscellaneous Opening Costs: $0 to $10,000 - New Store Setup Costs: $25,000 to $45,000 - Additional Funds (Three-Month Period): $75,000 to $175,000 ## Fees and royalties The initial franchise fee required to open an American Freight franchise is $49,900. Franchise owners are also required to pay an ongoing royalty fee of 5%. *Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, 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 advice, nor does any information in the email 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. ## Entities - 1851 Franchise (publication) - unit expansion (topic) - Retail (sector) - franchise fees (topic) - franchise cost (topic) - American Freight (company) - furniture retail (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/franchise-deep-dive-american-freight-franchise-cost-fees-profit-and-data-2724597). Summarized by Burnaze (https://burnaze.com/article/6f4f26f3-4a5a-45f8-859d-b2725a3b429e).