Lee's Sandwiches Franchise Cost, Revenue & Review 2026
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 – $1.7M, including a $50K – $75K franchise fee and an ongoing 6.9% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $210K – $1.7M
- 27th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.9%
- 86th 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 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
- COSTTotal investment $210K – $1.7M including a $50K franchise fee, 6.9% ongoing royalty.
- RETURNSRoyalty fees $2,514,351 and franchise fees $140,000 for FY2023; franchisor does not operate franchised-type outlets, revenue is from royalties and franchise fees only.
- RISKVerdict A (Strongest tier), verdict score 61/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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.
- 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
- 2024
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 43% above the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 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 | $1.6M |
| Total initial investment | $210K | $1.7M |
Source: Lee's Sandwiches 2024 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 – $1.7M
- 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%
- percentage · 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 – $40K |
| Total fee load | 8.9% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Lee's Sandwiches did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Lee's Sandwiches unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
10%
Below the 30–60% attractive-franchise band
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: 2024 FDD
Financial Performance
Royalty fees $2,514,351 and franchise fees $140,000 for FY2023; franchisor does not operate franchised-type outlets, revenue is from royalties and franchise fees only.
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% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Lee's Sandwiches Compares
Is the system healthy?
Source: FDD 2024 · 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
- 2.2%
- 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
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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).
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
- N/A
- limited sample (6 loans) — rate not shown below 10
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
- 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)
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.
Largest disclosed settlement: $703,662
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Chu and Waters, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 61 / 100 verdict
- 01HIGHGoing Concern status is False — franchisor financial viability is questionable
- 02MEDSystem shrinking: only 52 units with 2.2% YoY growth indicates stagnation or decline
- 03MEDNo Item 19 (financial performance) disclosed — inability or unwillingness to provide revenue/profit data
- 04HIGHLitigation history shows franchisee payment defaults and franchisor had to pursue collection through arbitration and bankruptcy
- 05MINORHigh unit investment range ($209K-$1.68M) creates significant exposure with no performance benchmarks to justify costs
- 06MED6.9% 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 2024 · 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 |
| 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
FDD download
Lee's Sandwiches · FDD (2024) PDF
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 – $1.7M, 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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 A-grade franchise with a verdict score of 61 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 Lee's Sandwiches, 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.