Start a Great Steak Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $133K - $513K

Units as of 2020: 50 25% over 3 years

Great Steak has been serving Philly cheesesteaks, fries, and baked potatoes since 1985. They are known to have freshly baked bread, real cheese, and quality meats at all locations. Great Steaks has a presence both in the United States and abroad. An ideal franchisee is an individual who may not necessarily have previous restaurant experience, but possesses an entrepreneurial drive, managerial experience, and is willing to apply the business model.

Why You May Want to Start a Great Steak Franchise

A Great Steak franchisee will be in charge of the daily operations of their outlet and is responsible for the performance of the restaurant. However, you may be given the opportunity to run your Great Steak franchise as an absentee owner.

You are expected to apply the basics of this proven business model to succeed as a franchisee. Great Steak may stand out from its competitors because they are authentic, and all ingredients are made fresh daily.

Customers may love what they get at Great Steak because the quality is nearly always a guarantee. They also get value for their money, enjoying great bites at an affordable price.

What Might Make a Great Steak Franchise a Good Choice?

To be part of the Great Steak 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 be prepared 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.

Two concepts that you can apply to your franchise are the mall food court counter and the in-line restaurant model. The two models may have different investment prices, so be mindful of your financial planning when seeking to open a Great Steak franchise.

Sufficient training and support are provided to franchisees. During training, Great Steak will cover various topics such as hiring the right team, inventory management, marketing, and buying hardware. You will also get assistance during processes, such as site selection, lease negotiation, construction, and your grand launch.

How To Open a Great Steak Franchise?

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Great Steak franchising team questions.

If the company finds you to be a good fit for the Great Steak brand, you may be invited to attend training at the Great Steak headquarters in Scottsdale, Arizona. Since you have to master the skill of making the great cheesesteak that many have come to love, you will spend many hours training both in the classroom and at one of the Great Steak restaurants.

It may be a good idea to speak with an attorney or financial advisor as you decide if opening a Great Steak franchise is a good decision for you. This conversation should include details on whether or not you have the financial resources necessary to own and operate a Great Steak location.

Soon, you may find yourself the owner of the newest Great Steak franchise.

Company Overview

About Great Steak

Industry	Food
Related Categories	Philly Cheesesteak Sandwiches, Sandwiches
Founded	1985
Parent Company	Kahala Franchising LLC
Leadership	Eric Lefebvre, CEO
Corporate Address	9311 E. Via De Ventura Scottsdale, AZ 85258
Social	Facebook, Twitter

Business Overview

Franchising Since	1986 (38 years)
# of employees at HQ	227
Where seeking	This company is offering new franchises in the following US states: This company is offering new franchises in the following international regions:
# of Units	50 (as of 2020)

Information for Franchisees

Here's what you need to know if you're interested in opening a Great Steak 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.	$7,500 - $30,000
Initial Investment 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.	$132,500 - $513,300
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.	$250,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$129,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	20% off franchise fee
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.	6%+
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.	to 4%
Term of Agreement 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.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Great Steak has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment

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	40 hours
Classroom Training	40 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
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.	No
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.	No
# of employees required to run	10-15
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.	Yes