Bottom line
- Total investment $388K – $668K including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $924K/year (median $880K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 104 loans (below the industry average).
- 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
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 PrimoHoagies unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 PrimoHoagies units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.3M
on $6.5M purchase
Total debt
$5.2M
SBA $3.2M + senior + seller note
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.
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 · 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
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.
Score breakdown · what drove the 44 / 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
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
98 numbers
One-time purchase · CSV download · Validation questions included
FDD download
PrimoHoagies · FDD (2025) PDF