How Much Does a Lee's Hoagie House Franchise Cost?
Data from the 2023 Franchise Disclosure Document
Investment Summary
Total Investment
$176K – $509K
Franchise Fee
$30K
Royalty
the greater of 5% of Gross Revenues or $200 per week
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Lee's Hoagie House is $30K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Lee's Hoagie House franchise requires a total investment of $176K – $509K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $17K to $37K.
Ongoing Costs
Beyond the initial investment, Lee's Hoagie House franchisees pay ongoing fees. The royalty structure is: the greater of 5% of Gross Revenues or $200 per week. The advertising or brand fund contribution is 1.0% of gross sales.
Net Worth & Liquid Capital Requirements
Lee's Hoagie House requires working capital of $17K – $37K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Lee's Hoagie House's Item 19 financial performance representation:
Median gross sales: $364K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Lee's Hoagie House?
SBA Loans Issued
1
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Lee's Hoagie House has 1 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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