Famous Dave’s Franchise Costs, Fees and Profit Data for 2026

Franchise Opportunity Deep Dive: Famous Dave’s is a casual dining restaurant franchise opportunity offering authentic barbecue and smoked and grilled meats.

REPORTED COST TO GET IN: $53,500 to $4,440,000, depending on model (see below)

REPORTED ROI (Item 19): $2,816,498 (annual average net revenues, FY 2025)

Franchise overview

Famous Dave’s* is a franchised restaurant offering barbecue and smoked and grilled meats in a full-service, casual-dining setting (while further expanding into the fast-casual and QSR restaurant space).

Famous Dave’s was founded in Minnesota in 1994 by Dave Anderson and began franchising in 1998. Today, the chain operates 100 locations in the U.S., Canada and the United Arab Emirates.

Mission: Famous Dave’s mission is to delight guests with the most enjoyable and authentic barbecue experience possible, rooted in a passion for slow-smoked meats and award-winning flavors.

Vision: The brand’s vision centers on expanding its reach as America’s favorite BBQ franchise, bringing its signature barbecue and hospitality to new communities while evolving its dining formats for broader accessibility.

• Signature Menu: Serves a specialized variety of hickory-smoked spareribs, baby back ribs, beef brisket, herb-roasted chicken and beans. Emphasizes genuine smoked barbecue as a central part of its culinary identity.

• Diverse Menu: Made-from-scratch sides and handcrafted desserts.

• Full Catering Program: Catering services for events and an ability to deliver barbecue for large gatherings.

• Proprietary Flavors: Famous Dave’s utilizes unique, proprietary, brand-specific sauces, seasonings and rubs.

• Casual Atmosphere: High-quality food and beverages served in a casual, comfortable and fun environment.

• Site Selection: Famous Dave’s assists with proposed locations, assessing suitability based on demographics, traffic flows and household income.

• Comprehensive Manuals: Covers everything from kitchen technical skills to financial management.

• Proprietary Technology: Requires and provides access to brand technology, including integrated point-of-sale systems, online ordering and high-speed monitoring.

• Extensive Training Program: Provides a mandatory initial training program (typically lasting seven weeks).

• Operational Assistance: The brand provides a specialized opening team for up to 14 days to assist with implementing the restaurant system and training staff.

• Established Supply Chain: Grants access to negotiated national purchasing arrangements with approved suppliers to obtain lower net prices on food and equipment.

• Marketing Support: Administers a system-wide marketing fund used for product research, advertising production and national promotional programs.

Expansion plans

Famous Dave’s is in the midst of targeted expansion throughout the United States, with opportunities available in Arizona, California, Colorado, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, Montana, North Dakota, Nebraska, New Jersey, Nevada, New York, Ohio, Oregon, South Dakota, Tennessee, Texas, Virginia, Washington and Wisconsin.

Famous Dave’s is also offering international franchise opportunities in Winnipeg, Abu Dhabi and Dubai.

Prospective franchisees are invited to visit the Famous Dave’s franchise development website for more information.

Initial Costs: The estimated initial investment required to begin operation of a Famous Dave’s franchise ranges from $53,500 to $4,440,000, depending on the model:

Ghost Kitchen/Cloud Kitchen

• Leased: $53,500 - $645,000

• Purchased: $53,500 - $1,820,000

Line-Service Restaurant

• Leased: $435,000 - $1,045,000

• Purchased: $824,500 - $2,020,000

Counter-Service Restaurant

• Leased: $689,000 - $1,485,000

• Purchased: $1,944,000 - $3,147,500

Full-Service Restaurant

• Leased: $1,254,500 - $2,865,000

• Purchased: $3,179,000 - $4,440,000

Franchise costs and fees

The 2026 Franchise Disclosure Document (FDD) breaks these costs down as follows:

Initial Franchise Fee: According to the 2026 FDD, the initial franchise fee is $10,000 for a ghost kitchen/cloud kitchen location and $35,000 for a line-service, counter-service or full-service restaurant. This fee is nonrefundable and payable upon signing the franchise agreement.

Ongoing Fees: According to the 2026 FDD, Famous Dave’s franchisees are responsible for the following ongoing payments and fees (these ongoing fees are uniform regardless of the restaurant buildout or service model):

ROI Potential: According to the 2026 FDD, the 30 company-owned restaurants and 59 franchised restaurants operating for the entirety of FY 2025 reported the following net revenue:

Note: This data does not include ghost kitchen/cloud kitchen outlets.

Famous Dave’s assists franchisees in evaluating proposed locations based on factors such as visibility, traffic flows and demographics. The franchisor also provides standard plans and specifications for the restaurant and a written schedule of all required equipment, food items and supplies. Once a franchisee has completed mandatory initial training, Famous Dave's provides an opening team for up to 14 consecutive days to assist with implementing the restaurant system and training new staff.

For traditional restaurants, the franchisor also provides access to a grand opening celebration package containing promotional and advertising materials.

Mandatory initial training covers approximately seven weeks (35 shifts) and is provided at no additional cost for the operating partner, general manager and two to four additional management personnel. Instruction is held at a certified training location and includes classroom and on-the-job training in areas such as kitchen technical skills, food preparation, front-of-house service and management functions like inventory and financial systems. Famous Dave's also offers additional training if a franchisee hires new management staff or if the restaurant fails to meet specific performance standards.

Ongoing assistance includes periodic restaurant visits and written evaluation reports to ensure compliance. Famous Dave's provides advisory services via telephone or in writing, updates to the standard operating procedures and training manuals and recommendations for advertising and marketing. The franchisor also negotiates national purchasing arrangements with suppliers to secure lower net prices for franchisees.

Franchisees are required to use designated brand technology, which includes an integrated front-of-house and back-of-house point-of-sale (POS) system that handles terminals, guest check printers and kitchen order communication. Additionally, franchisees must utilize the brand's approved mobile app and online food ordering service and may be required to integrate with specific third-party delivery service providers. The initial investment includes approximately $10,000 for the fully installed office and telecommunications equipment, computer hardware, peripherals and software.

• Liquid Assets: $200,000

• Net Worth: $500,000

Famous Dave’s looks for franchisees with strong business judgment, leadership ability and the discipline to run a high-volume restaurant operation. While prior restaurant experience is not required, successful owners are typically comfortable managing teams, following established systems and overseeing daily operations. The brand also favors operators who can support multi-unit growth and bring the financial and organizational capacity to scale over time.

An operating partner must maintain at least a 20% ownership stake and provide full-time, on-site supervision of the restaurant. Franchisees are strictly limited to selling approved menu items and must purchase proprietary ingredients and supplies only from designated suppliers. Owners must use specific point-of-sale systems that allow the corporate office to monitor real-time sales data.

Additionally, franchisees are obligated to maintain the brand’s physical image through mandatory remodeling every five years and must participate in all system-wide marketing and quality assurance programs. If the franchisee is an entity, all owners (and their spouses in certain states) must sign a personal guarantee making them individually liable for the franchise’s financial obligations.

Famous Dave's does not typically offer any direct or indirect financing for any part of a franchisee's investment, nor does the franchisor typically guarantee a franchisee's notes, leases or other obligations.

The U.S. barbecue restaurant market is expected to reach a valuation this year of almost $5 billion. With more than 15,000 barbecue restaurants in the U.S., the market is set for significant growth (CAGR of about 2% over the last five years). Sector growth is being driven by high consumer demand for smoked meats, yet the market remains largely fragmented among regional and independent operators.

Growth in the space is being driven by a greater demand for convenience, innovation and quality.

Famous Dave’s stands out in the barbecue realm by focusing on quality and convenience in a variety of settings backed by a nationally recognizable brand and system.

In terms of competition, Famous Dave’s faces several notable players in the franchised barbecue sector, including Dickey's Barbecue Pit, Mission BBQ, City Barbeque, Texas Roadhouse and more. However, Famous Dave’s strong national branding, array of food options and focus on quality and customer service set the chain apart.

1. Submit an Inquiry: Complete the online inquiry form to receive the Famous Dave's Franchise Report. After submitting the form, a franchise development representative will contact you to discuss the opportunity and begin the qualification process.

2. Complete the Confidential Questionnaire: Provide additional information about your background and financial qualifications. If you meet the initial requirements, the team will schedule your first call and send you the FDD.

3. Participate in the Discovery Process: Meet with the franchise development team to learn about the Famous Dave's business model, support system and franchise opportunity while discussing your goals and experience. You'll also review the FDD and receive a business model overview before moving to the next stage.

4. Meet the Leadership Team: Schedule a call with a member of the executive leadership team to discuss your background, ask questions and determine whether the opportunity is the right fit for both parties.

5. Speak With Existing Franchise Owners: During the peer review stage, you'll have the opportunity to talk directly with current Famous Dave's franchise owners about operating the business. They also provide feedback to the franchisor about whether you're a good fit for the system.

6. Attend Discovery Day: Visit the company's headquarters in Minnesota to meet the executive team, tour the facilities, see the business model in action and get a firsthand look at the support organization.

7. Sign the Franchise Agreement and Begin Onboarding: If both parties decide to move forward, you'll complete the franchise agreement and officially become a Famous Dave's franchise owner. From there, the company begins the onboarding process, including site selection, training and restaurant development.

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