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American FreightFurniture, mattresses, appliances
- 2023 Franchise 500 Rank
#492 Not ranked last year
- Initial investment
$522K - $949K
- Units as of 2022
367 113.4% over 3 years
Whether a new sofa, mattress, or other type of furniture, we may all love shopping for brands that match our styles, comfort, and budget. American Freight strives to help customers find quality furniture that makes sitting, sleeping, and eating enjoyable.
American Freight was founded in 1994 and operates with the intention to give customers whatever their hearts and homes desire. They may offer deals on mattresses, sofas, dining tables, appliances, and more. Customers might appreciate American Freight’s range of new products and the discounts that help them save. Their flexible ‘take-home today’ payment option is a service that is in place to give customers value for their finances.
American Freight began franchising in 2020 and is seeking to add franchisees to its repertoire. There are over 300 company-owned American Freight locations, which may represent the reach that it has.
Why You May Want To Start An American Freight Franchise?
If you love the adventure of shopping and helping others, then opening an American Freight franchise might be an exciting opportunity for you. American Freight believes that selling the 'best for less' is a rewarding mission and each store strives to give customers the best deals in the market.
Potential franchisees are individuals who can connect with customers and help them find furniture that works for them. Experience working in the retail industry isn’t necessary, but some experience in sales may be highly beneficial.
Under the American Freight umbrella, franchisees will most likely be expected to run their units efficiently and satisfy customers with brands they may have come to know and love.
What Might Make An American Freight Franchise A Good Choice?
American Freight wants customers to feel as though they are improving their quality of life through the purchases they make. That is why they sell quality items for discounted prices. They believe this has helped them to build a sound reputation among customers.
Between the customer, industry, and strategy, opening an American Freight franchise may offer a more predictable outcome than investing in a completely new brand.
American Freight’s business model has survived for several decades, which may prove its resilience. Anyone who sits, sleeps, and eats could potentially use American Freight products, which may give franchisees a large sector of customers with which to work.
To be part of the American Freight franchise team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open An American Freight Franchise
Make sure to research the brand and your local area to see if American Freight would do well in your community. You may want to consider population and competition when doing so. Competition can be healthy, but too much may hinder your location’s growth.
Before making any financial commitment or signing an agreement, you must perform your due diligence. You may want to speak to existing franchisees and ask the American Freight franchising team questions. Ask questions about the "take it home today" program, how to promote locally, and the responsibilities on the sales floor.
If you still want to open an American Freight franchise and are awarded one, American Freight typically offers a great deal of support. In addition to pre-opening training, franchisees receive support through brand awareness, marketing, research, and construction. They also receive hands-on training and continued support after their units have opened.
About American Freight
- Related Categories
- Furniture & Appliances, Miscellaneous Retail Businesses
- Parent Company
- American Freight
- Terry McGee, VP of Franchise Development
- Corporate Address
109 Innovation Ct., #J
Delaware, OH 43015
More from American Freight
Don’t sleep on this opportunity!
THE AMERICAN FREIGHT STORY
American Freight Furniture and Mattress was established in Lima, Ohio in 1994 to help customers save money on quality furniture and mattresses. By 2020, the brand grew it’s nationwide footprint to more than 350 stores including the addition and rebrand of nearly 130 Sears Outlet and over 30 FFO Home locations. Through the rebrand, American Freight expanded its product assortment to encompass furniture, mattresses and appliances — because everyone needs a place to sit, sleep and eat!
Today, American Freight remains rooted in its foundational mission to sell the best for less every day while delivering excellent customer service. The company prides itself in the valuable savings it provides its customers through flexible payment options, “take home today” offerings and 100% approved free layaway. The business model continues to present itself as a recession-resistant investment that will withstand economic headwinds.
WHY FRANCHISE WITH AMERICAN FREIGHT?
The American Freight business model continues to present itself as a recession-resistant investment that will withstand economic headwinds—because everyone needs to sit, sleep and eat! With our proof of concept in the bank, our franchise opportunity is truly a ground floor opportunity. Our top stores generate $5,590,180 in gross sales and $1,006,555 in net income per store.*
*This information reflects the Average Gross Sales and Average Net Income for American Freight company-owned retail businesses which were open for more than a year as of fiscal year end 2021 and had annual gross sales of at least $4,500,00.00. Of these 20 retail businesses, 9 attained or surpassed the Average Gross Sales and 9 attained or surpassed the Average Net Income described above. We refer you to Item 19 of our 2022 Franchise Disclosure Document for additional information. A NEW FRANCHISEE'S RESULTS MAY DIFFER FROM THE REPRESENTED PERFORMANCE. This is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. Offerings made by prospectus only and in compliance with the applicable pre-sale registration and disclosure requirements in your state. ©2022 American Freight®. All rights reserved.
- Franchising Since
- 2020 (3 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
- # of Units
- 367 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a American Freight franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $521,900 - $948,900
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- American Freight has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 30 hours
- Classroom Training
- 40 hours
- Ongoing Support
NewsletterMeetings & ConventionsGrand OpeningSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where American Freight landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where American Freight ranked on other franchise lists? Find out below.
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