Franchise Deep Dive: American Freight Franchise Cost, Fees, Profit and Data

With more than 360 locations and a leadership team with over 200 combined years of experience, American Freight is a highly lucrative franchise opportunity.

By Jeff DwyerStaff Writer

Updated 8:08AM • 02/16/24

LAST UPDATED: December 2023
FRANCHISE WEBSITE: https://americanfreightfranchise.com/
NUMBER OF LOCATIONS: 360+
REPORTED COST TO GET IN: $496,900 to $942,900
REPORTED ROI (Item 19): $4,519,995 (Average gross sales for top stores)

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.

How Many American Freight Locations Are There?

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.

What Is the Business Model of American Freight?

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.”

How Much Can American Freight Franchise Owners Make?

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.

How Much Does It Cost To Open an American Freight Franchise?

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

What Is the Franchise Fee for American Freight?

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%.

Who’s On American Freight’s Leadership Team?

What Helpful Articles Can I Read to Learn More About American Freight?

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