About Lee's Hoagie House Franchise
Lee's Hoagie House is a sandwich restaurant franchise that has been franchising since 2014, backed by Lee's Original, Inc.
The brand is known for its classic Philadelphia style hoagies made with quality deli meats, fresh bread, and traditional toppings.
Lee's Hoagie House has deep roots in the Philadelphia area, where it has served generations of loyal customers.
Lee's Hoagie House Franchise Cost & Fees
Minimum Investment
$167K
Average Investment
$317K
Maximum Investment
$467K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenues with a minimum of $200 weekly of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Revenues (Brand Development Fund Contribution) and minimum of $500 per month (Local Advertising) | National brand fund |
| Total Investment Range | $166,800 – $467,425 | Includes build-out, inventory, working capital |
The investment range of $167K–$467K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenues with a minimum of $200 weekly) and marketing fee (Up to 2% of Gross Revenues (Brand Development Fund Contribution) and minimum of $500 per month (Local Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Additional Training Fee | $0 | $1,000 |
| Construction, Leasehold Improvements | $55,000 | $165,000 |
| Equipment, Furniture, Fixtures | $30,000 | $166,000 |
| Signage (interior and exterior) | $3,000 | $4,800 |
| Computer, Software and Point of Sales System | $6,000 | $9,000 |
| Opening Inventory | $11,500 | $15,000 |
| Rent Deposits | $0 | $13,500 |
| Utility Deposits | $0 | $1,500 |
| Insurance Deposits and Premiums | $1,200 | $1,200 |
| Pre-opening Travel Expense | $100 | $6,300 |
| Grand Opening Advertising | $10,000 | $10,000 |
| Professional Fees | $2,000 | $4,500 |
| Business Permits and Licenses | $500 | $1,000 |
| Printing, Stationery and Office Supplies | $1,000 | $1,500 |
| Additional funds for your initial 3 months of operation | $16,500 | $37,125 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then current franchise fee, with a minimum of $15,000 |
| Renewal Fee | 25% of the then current franchise fee; subject to a $7,500 minimum |
| Audit Fee | Costs and expenses |
| Interest/Late Payment Interest | 18% per year or highest rate allowed by law |
| Relocation Fee | Our Costs and expenses. |
| Testing or Supplier Approval Fee | $500, to be refunded to franchisee if approved for use in the entire system. |
| Additional training | Currently $1,000 per person per week plus expenses incurred. |
| Legal fees and expenses | Costs and expenses, including but not limited to attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
| Successor Agreement Fee | 25% of the then current franchise fee; subject to a $7,500 minimum. |
| Management Fee | 20% of Gross Sales, plus our expenses, in the event we must operate your franchise due to death, disability, etc. Plus our expenses |
| Indemnification | The amount of any claim, liability or loss we incur from your Franchised Business. |
| Reimbursement of Costs and Expenses | Costs and expenses. |
| Confidential Operating Manual Replacement Fee | Our then-current fee. |
| Post-Termination or Post-Expiration Expenses | Costs and expenses. |
| Grand Opening Public Relations & Advertising | $10,000 (Paid to local vendors, you do not pay us this fee) |
| Service Charge for Obtaining Insurance | The cost of purchasing the required insurance plus a service charge equal to 20% of our out-of-pocket expenses |
| Service Charge for Remedial Work to Correct Unhealthy or Unsafe Condition | Service charge equal to 20% of the cost of the remedial or corrective work |
| Liquidated Damages | Average of Royalty Fee owed over the twelve (12) months preceding the effective date of termination times the lesser of: (i) the number of months remaining in the term of your Franchise Agreement; or (ii) 24 months. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 20 days |
| Classroom Training | 38 |
| On-the-Job Training | 122 |
| Training Location | Philadelphia Metropolitan Area or other existing Lee’s Hoagie House Restaurant location |
| Additional Training | Franchisor may require or provide additional training programs, courses or seminars. Franchisee is responsible for expenses including transportation, lodging, meals, wages, and a tuition fee of $1,000 per person per week for additional attendees or required training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Approximately 100,000 daytime population for traditional sites; actual boundaries of the venue for non-traditional sites (e.g., mall, airport concourse). |
| Description | Protected Areas vary in size depending on population density and other demographic factors, including: the population base; growth trends of population; apparent degree of affluence of population; the density of residential and business entities; location of competing businesses and major and restricting topographical features which clearly define contiguous areas, such as rivers, mountains, major freeways and underdeveloped land areas. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two (2) successive five (5) year terms |
| Renewal Fee | 25% of the then current franchise fee; subject to a $7,500 minimum |
| Renewal Conditions | Franchisee must provide notice 6-12 months prior to term end, renovate and modernize premises, not be in default of agreements, satisfy all monetary obligations, secure a lease for premises, execute then-current franchise agreement (which may have materially different terms, including increased royalty/ad fees, but no new initial franchise fee), execute a general release, comply with current training obligations, pay successor agreement fee, and be current with all obligations to lessor/suppliers. |
| Transfer Fee | 50% of the then current franchise fee, with a minimum of $15,000 |
| Transfer Conditions | All accrued monetary and other obligations must be satisfied, no defaults, transferor executes a general release, transferor and transferee execute a mutual general release, transferee meets franchisor's standards (educational, managerial, business, moral character, credit rating, financial resources, no competition), transferee executes assignment or new franchise agreement (which may have different terms, but no new initial franchise fee and same Protected Area), all principals and spouses of transferee guarantee obligations, transferor remains liable for prior obligations, transferee and manager complete training, franchisor approves transfer agreement terms, transferee does not finance more than 75% of purchase price and subordinates interests, and franchisee pays a transfer fee. |
| Termination for Cause | Franchisor may terminate for various defaults including: failure to secure or open an Approved Location within time limits, failure to complete Initial Training, abandonment of the Restaurant, loss of premises, conviction of a felony or crime affecting the System, engaging in fraudulent/unfair/unethical/deceptive acts, public health/safety threat, unauthorized assignment/transfer, intentional under-reporting of Gross Sales, knowingly maintaining false books/records, misuse of Proprietary Marks, refusal to permit inspection, repeated defaults, selling unapproved products, or purchasing from unapproved suppliers. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, franchisee is prohibited from diverting business, employing franchisor/other franchisee employees, or owning/operating/having interest in a competing sandwich shop/food service business (defined as similar to Lee's Hoagie House or selling similar menu items constituting 10% or more of gross sales). Post-term, for 2 years, within 10 miles of any company-owned or franchised location, similar prohibitions apply. Ownership of up to 5% of voting securities of a public company is permitted. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchisee, or if a business entity, a principal, general partner or member (Equity Owner) who has completed Initial Training, must devote full time, energy, and best efforts to the management and operation of the Restaurant. Each Restaurant must be under the direct, full-time supervision of at least one full-time Equity Owner who has completed the Initial Training Program. An Equity Owner can be the Franchisee or a person owning 10% or more of the equity or voting shares of the Franchisee. |
| Required Suppliers | You must use or sell all of the Proprietary Products that we designate and purchase them from the suppliers that we designate. Our Confidential Operating Manual also identifies the specifications and requirements for all non-proprietary products you are required to purchase, along with any suppliers we approve or recommend for these purchases. You must purchase interior and exterior signs meeting our specifications only from an approved sign supplier. You must engage our designated/approved supplier(s) to prepare your construction drawings and other professional design services. You must currently lease or purchase the POS computer system that we designate. |
| Supply Restrictions | We reserve the right to designate an affiliate or ourselves as an approved supplier (or exclusive supplier) of certain required purchases in the future. If we notify you that we or our affiliate is an approved supplier, we and our affiliate reserve the right to generate revenue from the sale of these goods/services to you. You may not place new orders with any suppliers who are no longer on our approved list. You must buy all employee uniforms we specify. |
| Franchisor Revenue from Suppliers | $12,752.72 from vendors on account of required purchases by franchisees, representing 16.7% of our total revenue which totaled $76,199 for the fiscal year ending December 31, 2021. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing, nor do we guarantee your obligations. |
Lee's Hoagie House Franchise Earnings — Item 19
Average Revenue
$597K
Median Revenue
$597K
Revenue Range
$547K – $651K
Sample Size
2 units
Past financial performance does not guarantee future results. Individual results will vary.
Lee's Hoagie House Litigation & Risk Flags
Clean Litigation RecordLee's Hoagie House has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Lee's Hoagie House System Growth
Total Units
4
Franchised
2
Company-Owned
2
Lee's Hoagie House currently operates 2 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 1 | 6 |
| 2020 | 0 | 2 | 4 |
| 2021 | 0 | 0 | 4 |
Transfers: 0 | Closures: 3
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$76K
Net Income
$25K
Total Assets
$79K
Audited by Herbein + Company, Inc. for year ending December 31.
Lee's Hoagie House Franchise — FAQ
The total investment to open a Lee's Hoagie House franchise ranges from $166,800 to $467,425, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Lee's Hoagie House charges a royalty fee of 5% of Gross Revenues with a minimum of $200 weekly of gross sales, plus a Up to 2% of Gross Revenues (Brand Development Fund Contribution) and minimum of $500 per month (Local Advertising) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Lee's Hoagie House Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Lee's Hoagie House to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Lee's Hoagie House franchise owners report average revenue of $597K and median revenue of $597K. This is based on a sample of 2 units. Past performance does not guarantee future results.
Lee's Hoagie House has been franchising since 2014. The FDD shows an investment range of $166,800-$467,425, a 5% of Gross Revenues with a minimum of $200 weekly royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $166,800 to $467,425 depending on location size and market. A minimum of $16,500 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Lee's Hoagie House and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Lee's Hoagie House or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com