PrimoHoagies Franchise Cost, Revenue & Review 2026
- Investment
- $388K – $668K
- Disclosed sales
- $924K
- gross sales, not profit
- SBA charge-off
- 19.2%
- on 60 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
PrimoHoagies is a quick-service franchise serving made-to-order Italian hoagies on fresh-baked seeded rolls, plus sides. Franchisees run shops managing food prep, counter service, and staffing.
FranchiseVerdict summary · 2026
A PrimoHoagies franchise requires a total initial investment of $388K – $668K, including a $20K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $924K[2]. SBA 7(a) loans show a 19.2% charge-off rate across 60 loans[1]. 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: medium - issued 12 to 24 months ago; a newer filing is likely on file
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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $388K – $668K
- 63rd pct Service Resta…
- Avg gross sales
- $924K
- 17th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 118
- 78th pct Service Resta…
- SBA charge-off
- 19.2%
- % of SBA 7(a) loans not repaid · median varies by category
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 $388K – $668K including a $20K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $924K/year (median $880K).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 19.2% across 60 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +3 franchised outlets in the latest year (10 opened, 7 closed); 9 signed but not yet open (Item 20).
- GROWTHSystem growing at 20.4% CAGR over 3 years with 118 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- PrimoHoagies Franchising, LLC
- Parent company
- PrimoHoagies OpCo, LLC (owned by PrimoHoagies Owner, LLC)
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- PrimoHoagies Owner, LLC
- FDD Item 1, page 9 of the 2025 FDD
- Predecessor
- Primo Franchising, Inc. (New Jersey corporation, formed June 2002, converted to Delaware corp Aug 2005)
- Prior franchisor entity
- CEO title
- President and Chief Executive Officer
- Nicholas Papanier Jr.
- Incorporated in
- Delaware
- HQ
- 610 Ryan Avenue, Unit V4, Westville, New Jersey 08093
- Auditor
- McKonly & Asbury, LLP
- Audited financials
- Franchisor revenue
- $10.2M
- vs $8.8M prior year
Overview
About
- CEO
- Nicholas Papanier Jr.
- Headquarters
- NJ
- Founded
- 2005
- FDD year
- 2025
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 9% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $20K | |
| Furniture, Fixtures, Equipmentnot refundable | $161K | $198K | |
| Inventorynot refundable | $31K | $40K | |
| Lease Deposits, First Month's Rentnot refundable | $3K | $14K | |
| Architectural Plans and Designnot refundable | $7K | $18K | |
| Leasehold Improvements, Permits, Designs, Paintingnot refundable | $113K | $277K | |
| Grand Opening Advertisingnot refundable | $15K | $15K | |
| Printing/Suppliesnot refundable | $3K | $4K | |
| Professional Feesnot refundable | $0 | $5K | |
| Signagenot refundable | $5K | $16K | |
| Insurance, Licenses and Utility Depositsnot refundable | $10K | $15K | |
| Travel, Lodging and Meal Expenses During Trainingnot refundable | $500 | $7K | |
| Additional Funds (3 months)not refundable | $20K | $40K | |
| Total initial investment | $388K | $668K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $388K – $668K
- Middle of category vs category
- Liquid capital req'd
- $20K – $40K
- Top 40% of category vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Training fee | $350 |
| Transfer fee | $13K |
| Renewal fee | $7K |
| Inventory (initial) | $31K – $40K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for PrimoHoagies until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$558K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one PrimoHoagies 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
- Avg gross sales
- $924K
- Per unit, per year
- Median gross sales
- $880K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical average/median gross sales plus quartile breakdown and cost/expense percentages
- Sample size
- 88 outlets
- vs category median 19 · large
- Range (low → high)
- $424K→$2.0MCited, not corroborated — printed on page 53 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $590K→$1.4M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $924K/year in gross sales. Revenue-to-investment ratio: 1.7x.
Fee burden
Total ongoing fee load of 9.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 20.4% CAGR over 3 years across 118 units — operators are staying and new ones are joining.
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 PrimoHoagies 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 118
- Opened
- 10
- Last reporting year
- Closed
- 7
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.9%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- +20.4%
- Net unit change over 3 years
- 3-yr CAGR
- +20.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 21
- Reacquired
- 6
- Franchisor bought back
- Signed, not yet open
- 9
- 0.08 per open outlet · Item 20 Table 5
- Projected new
- 25
- Franchisor's next-year forecast
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
- California
- Hawaii
- Michigan
- Minnesota
- North Dakota
- South Dakota
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
98 current owners across 10 states.
- PA 47
- NJ 34
- FL 5
- CO 2
- DE 2
- MD 2
- NC 2
- NY 2
- LA 1
- MA 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 60
- Loan volume
- $16.3M
- Median loan
- $244K
- 50th percentile
- Charge-off rate
- 19.2%
- on 60 loans · 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)
- 80.8%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 30
- Defaults
- 5
- Typical loan rate
- 8.0%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 787
- 4.8 per loan
- Lender concentration
- 15%
- top lender's share
Borrower mix: 85% went to startups / new businesses, 15% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
PrimoHoagies charge-off rate by loan vintage
Top lenders financing PrimoHoagies franchisees
Showing 3 of 30 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for PrimoHoagies from SBA 7(a) FOIA data.
- Principal loss rate
- 3.8%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 7.96%
- Avg chargeoff amount
- $123K
- Lender concentration
- 15.0%
- Job velocity
- 4.8 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 787
Top SBA lendersTop lender holds 15% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | TD Bank, National Association | 9 | $650K | 16.7% |
| 2 | Wilmington Savings Fund Society FSB | 5 | $1.5M | 25.0% |
| 3 | Hancock Whitney Bank | 5 | $2.0M | N/A |
| 4 | Truist Bank | 4 | $1.1M | 33.3% |
| 5 | The Huntington National Bank | 4 | $835K | N/A |
| 6 | KeyBank National Association | 3 | $1.2M | N/A |
| 7 | Manufacturers and Traders Trust Company | 2 | $135K | 0.0% |
| 8 | First Commonwealth Bank | 2 | $105K | 0.0% |
| 9 | Hyperion Bank | 2 | $1.1M | 100.0% |
| 10 | BayFirst National Bank | 2 | $914K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| PAPennsylvania | 24 | 1 | 8.3% |
| NJNew Jersey | 11 | 1 | 16.7% |
| FLFlorida | 6 | 0 | -- |
| DEDelaware | 4 | 1 | 33.3% |
| COColorado | 3 | 0 | 0.0% |
| MDMaryland | 3 | 1 | 50.0% |
| LALouisiana | 2 | 0 | -- |
| NYNew York | 2 | 0 | -- |
| SCSouth Carolina | 2 | 1 | 100.0% |
| GAGeorgia | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 19.2% — 20% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Single concluded arbitration (Scarlata-Nesbitt, 2015) alleging fraud/RICO/NJ Franchise Practices Act, most claims dismissed on summary judgment. Strong financials otherwise: net worth $1,501,947, net income $413,835 on $10.18M revenue, audited, Item 19 disclosed, 118 units growing +20.4%. One older litigation matter is the only flag.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One concluded arbitration: Scarlata-Nesbitt v. PrimoHoagies Franchising, Inc. (JAMS, filed 3/11/2015) — franchisee alleged fraud/misrepresentation, RICO, NJ Franchise Practices Act and Consumer Fraud Act violations, sought $1,000,000; most claims dismissed on summary judgment except a territory-adjacent relocation claim; arbitrator awarded $54,400 plus costs/fees totaling $134,472; parties later reached confidential settlement (Dec 2016).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · McKonly & Asbury, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 8 disclosed franchisor received $1,797,242 in rebate consideration from suppliers in FY2024 (17.6% of total revenue of $10,181,293); rebates range ~3%-25.3% of purchase price. Affiliate Nellie's Provisions generated $22,738,894 gross revenue from sales to franchisees in FY2024, none of which was shared with franchisor as rebate.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 56 / 100 verdict
- 01MEDOne concluded arbitration (mostly dismissed on summary judgment)
- 02MINORPositive net worth $1.5M, net income $413,835
- 03MINOR118 units, +20.4% growth, audited, Item 19
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Geographic area |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 1 |
View Item 3 litigation summary
One concluded arbitration: Scarlata-Nesbitt v. PrimoHoagies Franchising, Inc. (JAMS, filed 3/11/2015) — franchisee alleged fraud/misrepresentation, RICO, NJ Franchise Practices Act and Consumer Fraud Act violations, sought $1,000,000; most claims dismissed on summary judgment except a territory-adjacent relocation claim; arbitrator awarded $54,400 plus costs/fees totaling $134,472; parties later reached confidential settlement (Dec 2016).
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 164 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor approval of franchisee-proposed site; franchisor provides site selection guidelines/consultation
- Franchisor financing
- Not offered
- Item 10
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Item 20 · call current owners
Franchisee Contacts
98 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 PrimoHoagies franchise?
The total investment to open a PrimoHoagies franchise ranges from $388K – $668K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do PrimoHoagies franchise owners earn?
According to Item 19 of the PrimoHoagies FDD, the average gross sales per unit is $924K. The median is $880K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns PrimoHoagies?
PrimoHoagies is franchised by PrimoHoagies Franchising, LLC. Its parent company is PrimoHoagies OpCo, LLC (owned by PrimoHoagies Owner, LLC). The ultimate parent named in the FDD is PrimoHoagies Owner, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the PrimoHoagies 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 PrimoHoagies FDD and qualifies whose outlets they describe.
What is PrimoHoagies's franchise failure rate?
Based on SBA 7(a) loan data, PrimoHoagies has a charge-off rate of 19.2% across 60 loans, meaning 19.2% 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 PrimoHoagies franchise locations are there?
As of their most recent FDD filing, PrimoHoagies has 118 total units in the United States, including 112 franchised units and 6 company-owned units. 10 new units were opened in the latest reporting year.
Is PrimoHoagies a good franchise to buy?
FranchiseVerdict rates PrimoHoagies as a B-grade franchise with a verdict score of 56 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
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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.