Cousins Subs Franchise Cost, Revenue & Review 2026
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Cousins Subs franchise requires a total initial investment of $465K – $1.2M, including a $25K franchise fee and an ongoing 6.0% royalty[2]. Per the latest FDD, average unit revenue was $865K[2]. SBA 7(a) loans show a 4.5% charge-off rate across 27 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified
Overview
- Investment
- $465K – $1.2M
- 32nd pct Service Resta…
- Avg gross sales
- $865K
- 7th pct Service Resta…
- Royalty
- 6.0%
- 28th pct Service Resta…
- Units
- 92
- 42nd pct Service Resta…
- SBA charge-off
- 4.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $465K – $1.2M including a $25K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $865K/year.
- Verdict B (Above average), verdict score 53/100 (higher is better). SBA loan charge-off rate of 4.5% across 27 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- System contracting at -17.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Cousins Subs Systems, Inc.
- Predecessor
- Cousins Submarine Sandwich Shop Systems, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer, Director, and Chairman of the Board
- Christine A. Specht-Palmert
- Incorporated in
- Wisconsin
- HQ
- N83 W13400 Leon Road, Menomonee Falls, Wisconsin 53051
Overview
About
Franchisor of Cousins Subs Shops, restaurants specializing in submarine/hero and deli-style sandwiches on specially prepared bread, offering inside seating, carry-out, and drive-up service.
- CEO
- Christine A. Specht-Palmert
- Headquarters
- Wisconsin
- Founded
- 1972
Can you afford it, and what does the money buy?
Entry cost runs 13% below the typical full-service restaurants franchise.
Source: FDD · Items 5–7
FDD Item 7
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $20K | $50K |
| Equipment, build-out, other | $420K | $1.1M |
| Total initial investment | $465K | $1.2M |
Source: Cousins Subs FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $465K – $1.2M
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $50K
- Top 40% of category vs category
- Franchise fee
- $25K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $3K |
| Transfer fee | $5K |
| Renewal fee | $13K |
| Inventory (initial) | $6K – $18K |
What do units actually make?
Average unit sales run 44% below the full-service restaurants norm.
Source: FDD · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$87K
10.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
9.8 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $865K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- N/A
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross_sales_tercile_and_ebitda_band
- Sample size
- 29 units
- vs category median 16
- Range (low → high)
- $314K→$1.9M
- Cohort dispersion (min → max)
- Reporting year
- 2026
- Fiscal year the figures cover
Compared against 1273 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $865K/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
6.0% royalty + 2.0% ad fund.
Operator retention
System contracting at -17.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How Cousins Subs Compares
Is the system healthy?
Source: FDD · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 92
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.8%
- Company-owned
- 58
- Corporate units in the system
- % franchised
- 37%
- vs corporate-owned
- Net growth (3-yr)
- -17.1%
- Net unit change over 3 years
- 3-yr CAGR
- -17.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 2
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 27
- Loan volume
- $5.2M
- Median loan
- $180K
- 50th percentile
- Charge-off rate
- 4.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 95.5%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 1
- Typical loan rate
- 5.8%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7225
- Jobs supported
- 727
- 13.9 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Cousins Subs charge-off rate by loan vintage
Top lenders financing Cousins Subs franchisees
Showing 3 of 10 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
SBA loans charge off at 4.5% — 72% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Governing law | Wisconsin |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 39 hrs
- On-the-job training
- 164 hrs
- Training location
- Cousins' corporate office in Menomonee Falls, Wisconsin and/or a designated training facility in Wisconsin, or another certified location, or virtually
- Ongoing training
- Required
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cousins Subs franchise?
The total investment to open a Cousins Subs franchise ranges from $465K – $1.2M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cousins Subs franchise owners earn?
According to Item 19 of the Cousins Subs FDD, the average gross sales per unit is $865K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Cousins Subs's franchise failure rate?
Based on SBA 7(a) loan data, Cousins Subs has a charge-off rate of 4.5% across 27 loans, meaning 4.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Cousins Subs franchise locations are there?
As of their most recent FDD filing, Cousins Subs has 92 total units in the United States, including 34 franchised units and 58 company-owned units.
Is Cousins Subs a good franchise to buy?
FranchiseVerdict rates Cousins Subs as a B-grade franchise with a verdict score of 53 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Cousins Subs, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.