American Freight Franchise FDD, Costs & Fees (2026)
American Freight specializes in affordable furniture and mattress solutions, offering a wide selection of quality products at discounted prices for customers looking to furnish their homes on a budget.
KEY FRANCHISE STATS
Franchisees
?
5
+
n.a.
n.a.
Franchise fee
?
$49,900
Investment
?
$497,000 - $943,000
Revenue (AUV)
?
Undisclosed
$1,435,000
+
n.a.
n.a.
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American Freight is a U.S.-based retail franchise specializing in furniture, mattresses, and home appliances. It was founded in 1994 by Steve Belford in Lima, Ohio, under the name American Freight Furniture & Mattress. The company is now headquartered in Delaware, Ohio.
American Freight began franchising in 2020 after being acquired by Franchise Group, Inc., which also merged the brand with the former Sears Outlet. This strategic expansion helped the company grow to more than 300 locations across the United States.
American Freight stands out by offering affordable, quality home furnishings with same-day delivery options. Its value-focused retail strategy, flexible financing, and nationwide reach give it a competitive edge in the furniture and appliance sector.
Initial investment
The initial investment required for a American Freight franchise is
$497,000 - $943,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
Type of Expenditure
Amount
Initial Franchise Fee
$49,900
Leasehold Improvements
$0 – $100,000
Furniture, Fixtures and Equipment
$25,000 – $45,000
Delivery Truck
$5,000 – $7,000
Signage
$10,000 – $34,000
Three Months’ Rent
$45,000 – $75,000
Security Deposit
$0 – $30,000
Opening Inventory and Supplies
$250,000 – $350,000
Grand Opening Advertising
$10,000
Training Expenses
$2,000 – $12,000
Miscellaneous Opening Costs
$0 – $10,000
New Store Setup Costs
$25,000 – $45,000
Additional Funds (3-month period)
$75,000 – $175,000
Total
$496,900 – $942,900
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Type of Expenditure
Amount
Initial Franchise Fee
$49,900
Leasehold Improvements
$0 – $100,000
Furniture, Fixtures and Equipment
$25,000 – $45,000
Delivery Truck
$5,000 – $7,000
Signage
$10,000 – $34,000
Three Months’ Rent
$45,000 – $75,000
Security Deposit
$0 – $30,000
Opening Inventory and Supplies
$250,000 – $350,000
Grand Opening Advertising
$10,000
Training Expenses
$2,000 – $12,000
Miscellaneous Opening Costs
$0 – $10,000
New Store Setup Costs
$25,000 – $45,000
Additional Funds (3-month period)
$75,000 – $175,000
Total
$496,900 – $942,900
Franchise Disclosure Document
Below is American Freight's 2023 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
American Freight had 260 total units in 2023, of which 5 were franchised-owned and 255 company-owned.
American Freight provides a structured and mandatory training program to franchisees to ensure consistent operational standards. The training is conducted primarily at their Delaware, Ohio facility and is overseen by experienced professionals.
Initial Training Program: This is a mandatory program for at least two individuals, including the franchisee and the store manager. It consists of classroom training in leadership (7 hours), marketing (3 hours), operations (10 hours), and sales (20 hours). It also includes 40 hours of on-the-job training in in-store operations at the franchisee’s location.
Manuals and Training Materials: Franchisees are provided access to a Pre-Opening Manual and an Operations Manual. These materials contain proprietary information and are integral to the training process.
Ongoing and Refresher Training: American Freight may require additional training sessions not exceeding 10 days per year. These include refresher courses or updates on operational improvements, which franchisees must attend at their own expense.
Training for New Managers: If a new General Manager is appointed after the initial training, they must also complete the training program. American Freight commits to accommodating them in regularly scheduled courses whenever possible.
Territory Protection
American Freight provides its franchisees with certain territory protections under the Franchise Agreement. During the term of the agreement, the franchisor agrees not to establish or franchise another American Freight Retail Business within the franchisee's designated territory.
This protection remains valid as long as the franchisee complies with the terms of the agreement, and there are no conditions like sales quotas or market penetration that affect this protection. However, American Freight clearly states that the franchisee does not receive an exclusive territory.
Franchisees may face competition from other franchisees, corporate-owned outlets, or other distribution channels operated by the franchisor or its affiliates. Additionally, while franchisees can market broadly, they may only sell products and services from their approved retail location, and not via channels like the Internet or mail order.
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