How Much Does a Penn Station East Coast Subs Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$474K – $765K
Franchise Fee
$25K
Royalty
Varies depending on monthly net sales: 2% on net sales <= $30,000 (0% if within 5-year abatement period); ranges up to 8% on net sales > $55,000
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Penn Station East Coast 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 Penn Station East Coast Subs franchise requires a total investment of $474K – $765K. 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 $10K to $21K.
Ongoing Costs
Beyond the initial investment, Penn Station East Coast Subs franchisees pay ongoing fees. The royalty structure is: Varies depending on monthly net sales: 2% on net sales <= $30,000 (0% if within 5-year abatement period); ranges up to 8% on net sales > $55,000. The advertising or brand fund contribution is 2.0% of gross sales.
Net Worth & Liquid Capital Requirements
Penn Station East Coast Subs requires working capital of $10K – $21K 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 Penn Station East Coast Subs's Item 19 financial performance representation:
Median gross sales: $773K
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 Penn Station East Coast Subs?
SBA Loans Issued
14
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Penn Station East Coast Subs has 14 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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