Lee's Hoagie HouseFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Lee's Hoagie House franchise requires a total initial investment of $176K – $509K, including a $30K franchise fee. Per the 2023 FDD, average unit revenue was $432K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $176K – $509K
- 8th pct Service Resta…
- Avg gross sales
- $432K
- 2nd pct Service Resta…
- Royalty
- N/A
- Units
- 4
- 10th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 3 to 2 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $176K – $509K including a $30K franchise fee.
- Average unit revenue of $432K/year (median $364K).
- Verdict B (Above Average) with a risk score of 61/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Lee's Hoagie House Franchise Group LLC
- Ultimate parent
- Lee's Original, Inc.
- CEO title
- Chief Executive Officer
- Allan Lewin
- Incorporated in
- PA
- HQ
- 26 Second Street Pike, Southampton, PA 18966
- Auditor
- Herbein + Company Inc
- Audited financials
- Franchisor revenue
- $86K
- vs $76K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2023
- Status as of 2023; may have been resolved in a later filing we don't yet have.
Overview
About
Lee's Hoagie House franchisees operate quick-service sandwich shops specializing in hoagies, subs, and related menu items. Day-to-day operations include food preparation, inventory management, customer service, local marketing, and staffing oversight in a high-volume QSR environment with thin margins typical of the sandwich category.
- CEO
- Allan Lewin
- Headquarters
- PA
- Founded
- 2014
- FDD year
- 2023
- States available
- 3
FDD Item 7 · 2023 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Additional Training Feenot refundable | $0 | $1K | |
| Construction, Leasehold Improvementsnot refundable | $60K | $182K | |
| Equipment, Furniture, Fixturesnot refundable | $35K | $191K | |
| Signage (interior and exterior)not refundable | $3K | $5K | |
| Computer, Software and Point of Sales Systemnot refundable | $6K | $9K | |
| Opening Inventorynot refundable | $12K | $15K | |
| Rent Deposits | $0 | $14K | |
| Utility Deposits | $0 | $2K | |
| Insurance Deposits and Premiumsnot refundable | $1K | $1K | |
| Pre-opening Travel Expensenot refundable | $100 | $6K | |
| Grand Opening Advertisingnot refundable | $10K | $10K | |
| Professional Feesnot refundable | $2K | $5K | |
| Business Permits and Licensesnot refundable | $500 | $1K | |
| Printing, Stationery and Office Suppliesnot refundable | $1K | $2K | |
| Additional funds for initial 3 months of operationnot refundable | $17K | $37K | |
| Total initial investment | $176K | $509K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$48K
11.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $176K – $509K
- Better than avg vs category
- Liquid capital req'd
- $17K – $37K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- the greater of 5% of Gross Revenues or $200 per week
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | 5% of Gross Revenues with a minimum royalty payment of $200 weekly |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $1K |
| Transfer fee | $15K |
| Renewal fee | $8K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $432K
- Per unit, per year
- Median gross sales
- $364K
- Item 19 type
- gross_sales
- Sample size
- 3 units
- vs category median 13 · small
- Range (low → high)
- $282K→$651K
- Cohort dispersion (min → max)
- Reporting year
- 2022
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Lee's Hoagie House Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- +50.0%
- Net unit change last year
- 3-yr CAGR
- +50.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Ceased ops
- 25.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $242K
- Median loan
- $242K
- average
- Charge-off rate
- 0.0%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage hoagie franchise with opaque profitability data, minimal unit count, and unclear ROI metrics presents moderate-to-high risk despite positive growth trajectory and no litigation.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Herbein + Company Inc⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 61 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to verify profitability claims against $432K average revenue
- 02MINORExtremely small franchise system (4 units) limits data reliability and increases systemic risk; 50% YoY growth could reflect adding 2 units or closing/opening locations
- 03MINORHigh royalty floor of $200/week ($10,400 annually) creates fixed-cost burden that may exceed 5% on lower-revenue locations
- 04MINORWide investment range ($176K–$509K) suggests inconsistent unit economics or unclear cost structure for prospective franchisees
- 05HIGHNo litigation disclosed is positive, but tiny unit count and early-stage system reduce predictive value of this metric
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Daytime Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| 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 |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 38 hrs
- On-the-job training
- 122 hrs
- Training location
- On-site and corporate
- POS system
- custom POS computer system package
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: custom POS computer system package
Item 20 · call current owners
Franchisee Contacts
31 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Lee's Hoagie House · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Lee's Hoagie House franchise?
The total investment to open a Lee's Hoagie House franchise ranges from $176K – $509K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Lee's Hoagie House franchise owners earn?
According to Item 19 of the Lee's Hoagie House FDD, the average gross sales per unit is $432K. The median is $364K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Lee's Hoagie House's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Lee's Hoagie House (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Lee's Hoagie House franchise locations are there?
As of their most recent FDD filing, Lee's Hoagie House has 4 total units in the United States, including 3 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is Lee's Hoagie House a good franchise to buy?
FranchiseVerdict rates Lee's Hoagie House as a B-grade franchise with a risk score of 61 out of 100, 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 Lee's Hoagie House, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.