Steak n Shake Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$316,000 - $2,695,052
Franchise Fee
$20,000
Total US Locations
406
Business Summary
Steak n Shake By Biglari is a classic American brand that franchises restaurants specializing in premium burgers and milkshakes. Its mission is to consistently serve high-quality food with excellent service at competitive prices. Steak n Shake By Biglari restaurants operate under a distinctive system that includes specific architectural designs, decor, advertising programs, and standardized methods for preparing and serving food. The franchise primarily offers a quick-service format for freestanding and in-line locations, typically around 2,750 square feet with seating, delivery, carryout, and often drive-thru service. They also offer a quick-service format for smaller non-traditional locations, ranging from 400 to 2,400 square feet, found in places like food courts, universities, airports, and arenas, where seating is usually limited to common areas.
Corporate History
The Steak n Shake brand began its restaurant operations in 1934. It started offering a limited number of Steak n Shake franchises in 1939, making a general offering to sell franchises in 1991. SNS Enterprises, Inc., the current franchisor, was incorporated in Indiana on December 9, 2005, when Steak n Shake Inc. (then known as Steak n Shake Operations, Inc.) transferred its franchise business to SNS Enterprises. Steak n Shake, LLC, an affiliate, owns and licenses the brand's trademarks. In August 2018, Steak n Shake Enterprises introduced a 'Franchise Partner' program to transition company-operated restaurants to qualified employees and third parties under a separate disclosure document. The broader parent company, Biglari Holdings Inc., which owns Steak n Shake Inc., acquired Western Sizzlin Corporation in 2010, an affiliate that franchises different restaurant concepts.
Financial Overview
Investment Range
$316,000 - $2,695,052
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$25,000
Royalty %
4%
Marketing %
1%
Equipment Costs (Low)
$187,000
Equipment Costs (High)
$2,435,757
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Steak n Shake Inc. shows a positive financial standing with net earnings of $14.27 million in 2024, $20.46 million in 2023, and $6.76 million in 2022. The company maintains a positive shareholder's equity, reported at $176.54 million as of December 25, 2024. Cash and cash equivalents stood at $4.91 million at the end of 2024. Auditors issued an unqualified opinion, indicating the financial statements present fairly. However, the auditor's report includes an 'Emphasis of Matter' regarding significant related party transactions, stating that the financial statements might not reflect conditions had the company operated independently of these transactions. These related party transactions include the transfer of permanently closed company-operated restaurants to Biglari Real Estate Corporation (a related party) in 2024 and 2023, and significant returns of capital to Biglari Holdings Inc. of $25.25 million in 2024 and $20.50 million in 2023.
Financing Details
Steak n Shake Enterprises, Inc. does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own funding. However, upon request and subject to an additional upfront non-refundable fee, Steak n Shake Enterprises can assist in identifying third parties that offer financing. It's important to note that Steak n Shake Enterprises does not receive any benefits from these third-party lenders and does not guarantee any franchisee's notes, leases, or other monetary obligations. Franchisees are generally eligible for expedited Small Business Administration (SBA) loan processing through the SBA's Franchise Registry Program.
Performance Metrics
Total US Locations
406
Franchised Units
266
Corporate Units
140
Avg Square Footage
2,750
Franchising Since
1939
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
7
Litigation Summary
Steak n Shake Enterprises, Inc. and its international affiliate, Steak n Shake International, have been involved in several litigation and arbitration cases with franchisees. These disputes primarily revolve around alleged non-compliance with franchise obligations, challenges to pricing and promotion policies, claims of misrepresentation, fraud, and issues related to operational support. For example, in April 2023, certain international franchisees in France filed for bankruptcy and alleged Steak n Shake International failed to adapt the concept to the French market and provide assistance, which was ruled in favor of Steak n Shake International in April 2025. In another international case, two French franchisees initiated proceedings in November 2024 to terminate their agreements, which led to a court-ordered termination in January 2025; however, a settlement was reached in April 2025 with mutual waiver of monetary claims. Older cases, such as one from 2014, involved allegations of violating consumer fraud and franchise acts, racketeering, and misrepresentation regarding financial performance, which was dismissed and settled. Another case from 2015 involved a franchisee challenging the maximum pricing policy and settled with Steak n Shake Enterprises paying $250,000. In 2018, a franchisee sued over the maximum pricing policy and lack of support, leading to a settlement where the franchisee paid Steak n Shake Enterprises $100,000. An international arbitration from 2018 involved claims of breach of agreement regarding royalty credits and marketing funds, which resulted in a ruling against the franchisee, who was ordered to pay over $485,000 in royalties, fees, and costs. A 2021 case alleging fraud and inflated product prices was dismissed and later settled. There were no lawsuits initiated by Steak n Shake Enterprises against franchisees in the last fiscal year.
Bankruptcy History
Steak n Shake Enterprises, Inc. has no bankruptcy information to report, meaning neither the company, its parent, predecessors, nor any identified persons in management have filed for bankruptcy or been involved in significant bankruptcy proceedings that are required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Steak n Shake By Biglari franchisees must give written notice between 6 and 12 months before their current agreement expires. They must be in good standing, meaning they are current on all payments to Steak n Shake Enterprises and its affiliates, have no material defaults, and meet minimum quality, service, and cleanliness (QSC) standards, as well as guest satisfaction and service times. Franchisees must maintain possession of their restaurant premises or secure an approved substitute. They are required to sign Steak n Shake Enterprises' then-current standard franchise agreement, which may contain different terms, although for quick-service restaurants, the royalty, license, and digital and production fund fees will remain consistent with the original agreement's amounts. Franchisees must also complete any required remodeling and retraining, and pay a renewal fee equal to 50% of the then-current Initial Franchise Fee (currently $12,500 based on a $25,000 fee). Additionally, there should be no pending or threatened litigation between the franchisee and Steak n Shake Enterprises or its affiliates, and the franchisee must execute an agreement releasing Steak n Shake Enterprises from any known or unknown claims, unless prohibited by state law.
Training & Support Program
Franchisor Assistance
Steak n Shake Enterprises provides various forms of assistance to its franchisees. Before opening, Steak n Shake Enterprises offers site selection guidance, standard building plans in PDF format (CAD drawings are available to approved architects after an indemnification waiver), and a list of approved suppliers for equipment. It does not directly assist with permits but may require a permit expediter if delays occur. For training, Steak n Shake Enterprises provides a structured 'blended learning' Management Development Program (250 hours total) for General Managers, Restaurant Managers, and active Principal Owners at Certified Training Restaurants. The tuition is waived for up to four managers for quick-service restaurants (three for non-traditional), though travel and living expenses are the franchisee's responsibility. Managers must sign a Confidentiality and Waiver Agreement. During the opening phase, Steak n Shake Enterprises furnishes trainers for initial support: 400 hours for a franchisee's first restaurant and 225 hours for subsequent openings. Franchisees are expected to supplement this with their own qualified staff. After opening, ongoing support includes access to an electronic Manual that is regularly updated with new menus, pricing, and operating procedures. Steak n Shake Enterprises mandates ongoing training programs and refresher courses for managers and implements quality control programs, such as mystery shoppers and food safety audits, with costs shared proportionately by franchisees. It may also set maximum/minimum prices and require participation in promotional campaigns. Franchisees must use a designated bookkeeping service (approximately $295 per month) and submit monthly/annual financial reports. Steak n Shake Enterprises may send representatives to inspect and consult on operations, and in cases of persistent operational problems or failure to adhere to standards, it may provide temporary management for a fee of $4,000 per month, plus associated payroll, travel, and lodging expenses. For advertising, franchisees contribute 1% of Gross Receipts to a Digital and Production Fund, which Steak n Shake Enterprises uses for system-wide marketing and menu development. All local advertising requires prior written approval, and custom marketing services are available for an hourly fee ($50-$135). In terms of technology, Steak n Shake Enterprises specifies all required computer systems and technology (POS, kiosks, surveillance, drive-thru systems, etc.), with approved vendors. It mandates specific broadband connectivity and requires annual support contracts for help desk ($967.20), software/polling/reporting ($1,050.72), video surveillance infrastructure ($624.12), and food/supply/labor system maintenance ($840.12). Franchisees must utilize an approved payment processing platform for mobile and delivery orders and participate in the Steak n Shake mobile app and third-party delivery programs. Steak n Shake Enterprises maintains electronic access to franchisee POS and computer system data.
Initial Training Hours
250
Training Location
Certified Training Restaurant
Ongoing Support
After opening, Steak n Shake By Biglari franchisees receive ongoing access to the brand's Manual, which is consistently updated to reflect new menu items, pricing, operating procedures, and system standards. Managers and designated employees are required to attend periodic additional training, refresher courses, and conference calls. Steak n Shake By Biglari implements various quality control programs, such as 'mystery shopper' evaluations, customer feedback systems, and food safety audits, with franchisees sharing the associated costs. The franchisor may establish maximum or minimum prices for menu items and requires participation in all system-wide promotional campaigns. Franchisees are mandated to use a designated bookkeeping service, costing approximately $295 per month, and must submit monthly and annual financial reports in a specific format. Steak n Shake By Biglari's representatives conduct inspections of the restaurant premises and operations to ensure compliance with standards. If persistent operational problems or failures to adhere to system standards occur, Steak n Shake By Biglari may provide additional managerial assistance for a fee ($4,000 per month, plus expenses). The brand manages a 1% Digital and Production Fund, collecting fees for system-wide advertising, marketing, and menu development. All local advertising and promotional materials require prior written approval. Franchisees must integrate and participate in specified technology, including online/mobile ordering, loyalty programs (through the Steak n Shake mobile app), and approved third-party delivery services, using designated vendors for all required computer systems and networking, with Steak n Shake By Biglari having remote access to transactional data. Franchisees are also required to comply with Payment Card Industry Data Security Standard (PCI DSS) for network security.
Franchise Requirements
Ideal Candidate Profile
Steak n Shake By Biglari seeks franchisees who possess significant experience in the restaurant or retail business and have the financial resources needed for successful development. Ideal candidates should demonstrate a track record of successfully owning or managing restaurants similar to Steak n Shake By Biglari, possess good moral character, strong communication and team-building skills, and the aptitude to conduct the business. For General Managers and Restaurant Managers, Steak n Shake By Biglari requires individuals to be authorized by the franchisee to ensure compliance, dedicate their full-time efforts to the daily operations, and reside within the general area of the restaurant. Franchisees are also required to offer General Managers a minimum annual compensation of $70,000 (salary, bonus, and fringe benefits) to attract and retain highly qualified individuals. For multi-unit managers, previous experience as a district or area manager for similar restaurant concepts is also sought.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Staff Count
44
Territory Size Requirements
Steak n Shake By Biglari determines whether to grant a protected area and its size during the review of a specific location. Typically, in suburban or exurban areas, the protected area is a 2-mile radius around the restaurant. The protected area, if granted, is defined by specific geographic boundaries such as street boundaries, latitude and longitude. For restaurants located within a Captive Facility (like an airport or university), the protected area is limited to the confines of that specific facility. Under an Area Development Agreement, the development area may span a portion or all of a city, county, metropolitan area, or marketing area, with its size depending on factors like demographics and the franchisee's resources.
Staffing Notes
Steak n Shake By Biglari requires franchisees to maintain a sufficient number of properly trained managers and employees to ensure quick, competent, and courteous service, adhering to the franchisor's standards and guest satisfaction metrics. Staffing levels vary by restaurant format: a Quick-Service restaurant requires a minimum of 1 General Manager, 1 Restaurant Manager, and 2 Shift Managers, along with 30-50 associates. A Non-Traditional location requires 1-3 managers and 20-40 associates. Franchisees must offer their General Manager a minimum annual compensation package of $70,000 (including salary, bonus, and fringe benefits) to attract and retain qualified individuals. All managers must complete Steak n Shake By Biglari's management training program. Franchisees are encouraged to over-hire managers to account for potential turnover. Franchisees are solely responsible for hiring, firing, and all employment-related decisions, but staff must meet specific criteria regarding character, competency, communication skills, and dedication to full-time efforts in daily operations, and must reside within the restaurant's general area.