Lee's Sandwiches Franchise Cost, Revenue & Review 2026
- Investment
- $210K – $801K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (6)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Lee's Sandwiches is a quick-service franchise known for Vietnamese banh mi sandwiches, baguettes, coffee, and smoothies. Franchisees run the restaurants, managing in-house baking, food prep, and counter service.
FranchiseVerdict summary · 2026
A Lee's Sandwiches franchise requires a total initial investment of $210K – $801K, including a $50K – $75K franchise fee and an ongoing 6.9% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $210K – $801K
- 26th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.9%
- 90th pct Service Resta…
- Units
- 50
- 65th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · 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
- COSTTotal investment $210K – $801K including a $50K franchise fee, 6.9% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 60/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (1 opened, 1 closed); 1 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Lee's Sandwiches International, Inc.
- Parent company
- LCJJ Holdings, Inc.
- FDD Item 1, page 11 of the 2026 FDD
- CEO title
- CEO
- Chieu Van Le
- Incorporated in
- California
- HQ
- 660 E. Gish Road, San Jose, California 95112
- Auditor
- Chu and Waters, LLP
- Audited financials
- Franchisor revenue
- $2.6M
- vs $2.7M prior year
Affiliated brands
- Lee Bros
- LQNN
- has previously offered franchises in this or any other line of business
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Chieu Van Le
- Headquarters
- California
- Founded
- 2002
- FDD year
- 2026
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost is about typical for a quick-service restaurants franchise (near the category median).
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $20K | $60K |
| Equipment, build-out, other | $140K | $691K |
| Total initial investment | $210K | $801K |
Source: Lee's Sandwiches 2026 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
- $210K – $801K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $60K
- Top 40% of category vs category
- Franchise fee
- $50K – $75K
- Bottom third — review vs category
- Royalty
- 6.9%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.9%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.9% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Inventory (initial) | $5K – $20K |
| Total fee load | 8.9% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Lee's Sandwiches makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Lee's Sandwiches unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.9% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -2.2% 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 Quick-Service Restaurants medians
How Lee's Sandwiches Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 50
- Opened
- 1
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 90%
- vs corporate-owned
- Net growth (3-yr)
- -2.2%
- Net unit change over 3 years
- 3-yr CAGR
- -2.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 1
- 0.02 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- Ceased ops
- 2.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
58 current owners across 10 states.
- CA 42
- NV 3
- AZ 2
- CO 2
- GA 2
- TX 2
- VA 2
- MA 1
- OK 1
- OR 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $4.4M
- Median loan
- $565K
- 50th percentile
- Charge-off rate
- Under 10 loans (6)
- Insufficient SBA coverage: 6 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (6)
- 5-yr charge-off
- Under 10 loans (6)
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Stagnant franchise system with unresolved franchisor financial concerns, no disclosed unit economics, and documented collection disputes with franchisees — presents material risk to new investors.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Lee's Sandwiches Int'l, Inc. and LQNN, Inc. v. David K. Tran, Goldland Capital, Inc., et al. (Orange County CA Superior Court, filed 2018) and related arbitration (ADR Services, Santa Clara County) over a former Nevada franchisee's failure to pay past-due royalties/goods; franchisor and affiliate awarded $703,662.18 in damages plus $425,945.30 attorneys' fees/costs in 2021; franchisee's appeal dismissed 2023; franchisee filed Chapter 7 bankruptcy (case closed Dec 2022); escrowed funds released to franchisor in 2023.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Chu and Waters, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 attaches Exhibit F, the audited financial statements of Lee's Sandwiches International, Inc. for the years ended December 31, 2025, 2024 and 2023 (Chu and Waters, LLP). FY2025: royalty fees $2,383,864 and franchise fees $204,000 (total revenue $2,587,864); net income $536,145; total assets $1,683,377; total liabilities $264,067; equity $1,419,310.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 60 / 100 verdict
- 01MEDSystem shrinking: only 52 units with 2.2% YoY growth indicates stagnation or decline
- 02MEDNo Item 19 (financial performance) disclosed — inability or unwillingness to provide revenue/profit data
- 03HIGHLitigation history shows franchisee payment defaults and franchisor had to pursue collection through arbitration and bankruptcy
- 04MED6.9% royalty on undisclosed revenues makes ROI calculation impossible for prospective franchisees
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.9% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Santa Clara County, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 2 |
View Item 3 litigation summary
Lee's Sandwiches Int'l, Inc. and LQNN, Inc. v. David K. Tran, Goldland Capital, Inc., et al. (Orange County CA Superior Court, filed 2018) and related arbitration (ADR Services, Santa Clara County) over a former Nevada franchisee's failure to pay past-due royalties/goods; franchisor and affiliate awarded $703,662.18 in damages plus $425,945.30 attorneys' fees/costs in 2021; franchisee's appeal dismissed 2023; franchisee filed Chapter 7 bankruptcy (case closed Dec 2022); escrowed funds released to franchisor in 2023.
Items 10, 11
Training & Operations
- Classroom training
- 146 hrs
- On-the-job training
- 182 hrs
- Training location
- Garden Grove, California (Affiliate location)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisor_approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Brink POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Brink POS
Item 20 · call current owners
Franchisee Contacts
58 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Lee's Sandwiches franchise?
The total investment to open a Lee's Sandwiches franchise ranges from $210K – $801K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Lee's Sandwiches franchise owners earn?
Lee's Sandwiches makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Lee's Sandwiches?
Lee's Sandwiches is franchised by Lee's Sandwiches International, Inc.. Its parent company is LCJJ Holdings, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Lee's Sandwiches FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Lee's Sandwiches FDD and qualifies whose outlets they describe.
What is Lee's Sandwiches's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Lee's Sandwiches (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 Sandwiches franchise locations are there?
As of their most recent FDD filing, Lee's Sandwiches has 50 total units in the United States, including 45 franchised units and 5 company-owned units. 1 new units were opened in the latest reporting year.
Is Lee's Sandwiches a good franchise to buy?
FranchiseVerdict rates Lee's Sandwiches as a B-grade franchise with a verdict score of 60 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.