Lee's Sandwiches
Bottom line
- Total investment $210K – $1.7M including a $75K franchise fee, 6.9% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 13 loans (below the industry average).
- System growing at 20.5% CAGR over 3 years with 52 total units — strong expansion trajectory.
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 Sandwiches unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Overview
About
Lee's Sandwiches franchisees operate quick-service sandwich restaurants, likely featuring Vietnamese-style sandwiches (bánh mì) and related food items. Day-to-day operations include food preparation, staffing, inventory management, customer service, and maintaining POS/delivery systems across locations that may include dine-in, counter service, and third-party delivery channels.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 56 / 100 rating
- 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
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
58 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Lee's Sandwiches · FDD (2024) PDF