Lee's Hoagie House
Bottom line
- Total investment $176K – $509K including a $30K franchise fee.
- Average unit revenue of $432K/year (median $364K).
- Rated MODERATE with a risk score of 57/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Lee's Hoagie House unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Lee's Hoagie House units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$778K
on $3.9M purchase
Total debt
$3.1M
SBA $1.9M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 57 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
31 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Lee's Hoagie House · FDD (2023) PDF