Lennys Grill & Subs
Bottom line
- Total investment $283K – $577K including a $25K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $825K/year (median $737K).
- Rated MODERATE with a risk score of 63/100.
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 Lennys Grill & Subs unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Lennys Grill & Subs units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $5.8M purchase
Total debt
$4.6M
SBA $2.9M + senior + seller note
Overview
About
Franchisees operate fast-casual grill and submarine sandwich restaurants, managing food preparation, customer service, inventory, and staff scheduling. Day-to-day responsibilities include coordinating kitchen operations, maintaining food quality standards, handling POS systems, and driving local marketing within their protected territory.
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 · 3 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
Lennys presents meaningful caution due to shrinking unit count, absent profitability disclosure, and questionable corporate financial health despite moderate revenue figures.
Score breakdown · what drove the 63 / 100 rating
- 01MINORUnit count declining 1.7% YoY indicates system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 prevents ROI validation against $283k-$577k investment range
- 03HIGHGoing Concern status is FALSE, suggesting financial viability concerns at corporate level
- 04MINORHigh investment-to-revenue ratio (34-70% of average revenue required upfront) creates significant payback risk
- 05MED6% royalty on gross sales with undisclosed profitability makes unit economics opaque and potentially unfavorable
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
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Lennys Grill & Subs · FDD (2025) PDF