PrimoHoagiesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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 8.3% charge-off rate across 60 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $388K – $668K
- 26th pct Service Resta…
- Avg gross sales
- $924K
- 8th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 118
- 42nd pct Service Resta…
- SBA default
- 8.3%
- 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
Bottom line
- Total investment $388K – $668K including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $924K/year (median $880K).
- Verdict A (Top Quintile) with a risk score of 34/100. SBA loan charge-off rate of 8.3% across 60 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 20.4% CAGR over 3 years with 118 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- PrimoHoagies Franchising, LLC
- Parent company
- PrimoHoagies Owner, LLC
- Incorporated in
- DE
- HQ
- 610 Ryan Avenue, Unit V4, Westville, New Jersey 08093
- Auditor
- McKonly & Asbury, LLP
- Audited financials
- Franchisor revenue
- $8.8M
- vs $10.2M prior year
Overview
About
PrimoHoagies franchisees operate quick-service sandwich shops featuring customizable hoagies, sides, and beverages. Day-to-day operations include food preparation, customer service, inventory management, and local marketing within a protected territory, typically in strip malls or urban locations.
- CEO
- Nicholas Papanier Jr.
- Headquarters
- NJ
- Founded
- 2005
- FDD year
- 2025
- States available
- 11
FDD Item 7 · 2025 filing · 13 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$83K
9.0% margin
Unlevered ROIC
15%
EBITDA / total invested capital
Payback
6.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $388K – $668K
- Better than avg vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $20K – $20K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · 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 |
Financial Performance
- Avg gross sales
- $924K
- Per unit, per year
- Median gross sales
- $880K
- Item 19 type
- gross_sales
- Sample size
- 88 units
- vs category median 13 · large
- Range (low → high)
- $424K→$2.0M
- Cohort dispersion (min → max)
- Quartile band
- $590K→$1.4M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How PrimoHoagies Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 118
- Opened
- 10
- Last reporting year
- Closed
- 1
- Turnover rate
- 0.8%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- +2.8%
- Net unit change last year
- 3-yr CAGR
- +20.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 21
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).
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
- 8.3%
- 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
Vintage analysis
PrimoHoagies 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 PrimoHoagies'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 12 states
- Startup risk premium and job creation velocity
- 15-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
PrimoHoagies presents moderate-to-caution risk: slow unit growth, prior fraud litigation, non-disclosure of net income, and unclear going concern status create profitability uncertainty despite reasonable average revenue figures.
Litigation (Item 3)
1 case reference(s): 0 pending, 1 settled.
Largest disclosed settlement: $1
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · McKonly & Asbury, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 34 / 100 rating
- 01MINORStagnant unit growth of only 2.8% YoY with 118 units suggests mature/declining system momentum
- 02MINORNo Item 19 (average net income) disclosure limits transparency on actual profitability despite ~$924K average revenue
- 03HIGHLitigation history including fraud and RICO allegations with $134,472 arbitration award raises franchisor credibility concerns
- 04HIGHGoing Concern status of 'False' is ambiguous—clarification needed on financial health of parent company
- 05MEDHigh initial investment ($388K-$668K) combined with 6% royalty creates elevated break-even threshold with undisclosed margins
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Geographic area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | 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
1 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 164 hrs
- Training location
- On-site and corporate
- 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
FDD download
PrimoHoagies · FDD (2025) PDF
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.
What is PrimoHoagies's franchise failure rate?
Based on SBA 7(a) loan data, PrimoHoagies has a charge-off rate of 8.3% across 60 loans, meaning 8.3% 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 93 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 A-grade franchise with a risk score of 34 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.
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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.