Port of SubsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Port of Subs franchise requires a total initial investment of $170K – $578K, including a $125K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 15.7% charge-off rate across 61 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $170K – $578K
- 7th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- N/A
- Units
- 2
- 6th pct Service Resta…
- SBA default
- 15.7%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $170K – $578K including a $125K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 65/100. SBA loan charge-off rate of 15.7% across 61 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No 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
- Legal entity
- POS Franchising, LLC
- Parent company
- POS Holdings, LLC
- Incorporated in
- DE
- HQ
- 480 East Happy Canyon Road, Castle Rock, CO 80108
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $3.5M
- vs $4.6M prior year
Overview
About
Port of Subs franchisees operate casual fast-casual submarine sandwich restaurants, managing food preparation, inventory, staffing, and customer service in a QSR format. Day-to-day operations include sandwich assembly, point-of-sale management, labor scheduling, and local marketing to drive foot traffic and delivery orders.
- CEO
- Adam Contos
- Headquarters
- CO
- Founded
- 2022
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $125K | $125K |
| Working capital (3–6 mo) | $25K | $40K |
| Equipment, build-out, other | $20K | $413K |
| Total initial investment | $170K | $578K |
Source: Port of Subs 2025 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
- $170K – $578K
- Better than avg vs category
- Liquid capital req'd
- $25K – $40K
- Better than avg vs category
- Franchise fee
- $125K – $500K
- Near category avg vs category
- Royalty
- -n/d
- Ad fund
- 0.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $25K |
| Renewal fee | $10K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Port of Subs Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 61
- Loan volume
- $9.8M
- Median loan
- $125K
- 50th percentile
- Charge-off rate
- 15.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 84.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 34
- Defaults
- 8
Vintage analysis
Port of Subs charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Port of Subs's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 26-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This franchise shows critical distress signals: a two-unit system with no financial disclosures, questionable going concern status, and high upfront fees suggesting a franchisor dependent on franchise sales rather than unit profitability.
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 2 units operating — indicates either brand collapse, recent launch, or severe underperformance; impossible to validate system viability
- 02MINORNo Item 19 financial disclosure (avg revenue/net income) — prevents ROI validation and suggests franchisor may have poor unit economics to hide
- 03HIGHGoing Concern = False — franchisor may be insolvent or facing liquidation risk; franchisees' support infrastructure at serious risk
- 04MINORHigh franchise fee ($125k) relative to system size — indicates franchisor dependent on franchise fees rather than royalties from healthy operating units
- 05MINORWide investment range ($169k-$578k) with no clarification — suggests inconsistent buildout costs, poor unit standardization, or hidden expenses
- 06MINORRoyalty rate unknown — red flag for transparency; unable to assess ongoing cost burden or franchisor's incentive alignment
- 07MINOR10-year term with only 2 units — territory protection meaningless if system is failing; suggests franchisor cannot attract/retain franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographic Area |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 105 hrs
- On-the-job training
- 225 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Port of Subs · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Port of Subs franchise?
The total investment to open a Port of Subs franchise ranges from $170K – $578K, with an initial franchise fee of $125K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Port of Subs franchise owners earn?
Port of Subs 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 Port of Subs's franchise failure rate?
Based on SBA 7(a) loan data, Port of Subs has a charge-off rate of 15.7% across 61 loans, meaning 15.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Port of Subs franchise locations are there?
As of their most recent FDD filing, Port of Subs has 2 total units in the United States, including 0 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Port of Subs a good franchise to buy?
FranchiseVerdict rates Port of Subs as a C-grade franchise with a risk score of 65 out of 100, 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
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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.