How Much Does a Lennys Grill & Subs Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$283K – $577K
Franchise Fee
$25K
Royalty
6.0%
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Lennys Grill & Subs is $25K. 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 Lennys Grill & Subs franchise requires a total investment of $283K – $577K. 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 $20K to $30K.
Ongoing Costs
Beyond the initial investment, Lennys Grill & Subs franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Percentage of Gross Sales). The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $516.
Net Worth & Liquid Capital Requirements
Lennys Grill & Subs requires working capital of $20K – $30K 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 Lennys Grill & Subs's Item 19 financial performance representation:
Median gross sales: $737K
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 Lennys Grill & Subs?
SBA Loans Issued
7
Default Rate
33.3%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Lennys Grill & Subs has 7 SBA-backed loans on record. The default rate is 33.3%, which is above the franchise industry average, suggesting higher 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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