Fredbear's Family Diner was opened in 1970 by the two co-owners, Henry Emily and William Afton. It was an incredibly successful venture as Fredbear and Bonnie were quite popular. It was so successful that in 1975 what was called the "Great Expansion" began.
The Great Expansion was a gamble William took that added 4 new animatronics, totaling the amount of animatronics in the Diner to 7, the animatronics added were,
The Plush Animatronics
Freddy
Nightbear
(For more info read specific pages)

The Plush Animatronics were given their own shared stage while Freddy and Nightbear shared a stage just left of Parts and Service. The restaurant continued to bring in great profits allowing the owners to venture off into sister locations, I.E. Circus Baby's Pizza World and Freddy Fazbear's Pizza.
However after the recent disappearance of Mr. Afton's daughter a tragedy took place at Fredbear's, and hence Fredbear was removed off the main stage.
For more info concerning the "Bite" and Fredbear's removal from main stage please view Fredbear's page

Fredbear's Entertainment would be renamed Fazbear's Entertainment shortly after the incident of 1984 to minimize loss.