About Lennys Grill & Subs Franchise
Lennys Grill & Subs is a quick service restaurant franchise specializing in submarine sandwiches made on freshly baked bread, Philly cheesesteaks, deli sandwiches, salads, and desserts.
The brand has built its reputation around fresh, high quality ingredients and generous portions that keep customers coming back for flavorful, made to order meals.
The franchise fee is $25,000 for the first location and $20,000 for each additional restaurant.
Lennys Grill & Subs Franchise Cost & Fees
Minimum Investment
$283K
Average Investment
$430K
Maximum Investment
$577K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 6% of weekly Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 2% of weekly Gross Sales | National brand fund |
| Total Investment Range | $283,209 – $577,426 | Includes build-out, inventory, working capital |
The investment range of $283K–$577K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of weekly Gross Sales) and marketing fee (Currently 2% of weekly Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| POS System, Kiosks System and related equipment | $16,209 | $20,426 |
| Training | $2,500 | $8,000 |
| Pre-Opening & Opening Marketing (over 3 months) | $10,000 | $10,000 |
| Insurance | $2,500 | $7,000 |
| Deposits, Utility Deposits & Other Prepaid Expenses | $1,000 | $7,000 |
| Leasehold Improvements | $100,000 | $210,000 |
| Furniture, Fixtures, Equipment, Décor Package & Smallwares | $90,000 | $225,000 |
| Professional Fees (Attorneys, Architects, Engineers) | $10,000 | $20,000 |
| Signage | $6,000 | $15,000 |
| Additional Funds – (Three Month Period) | $20,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $7,500 |
| Technology Fee | $516 based on two POS terminals, one kiosk, and three kitchen display systems. Each additional terminal will add $32/month to this fee. |
| Audit Fee | Unpaid fees, late charges, interest and cost of audit |
| Local Advertising Expenditures | Currently 2% of weekly Gross Sales |
| Additional On-Site Training at Franchised Location | $300 per day plus expenses |
| Continuing Operations Training | Your expenses as well as your employees’ expenses |
| General Manager Training | $250 per week |
| Maintenance Costs | Will vary under circumstances |
| Failed Inspection or Non-Compliance Fees | Reimbursement of our travel expenses for subsequent evaluations and payment of our quality assurance fees (currently $500 to $1,500) |
| Fees to Evaluate and Approve Alternative Suppliers | Our out-of-pocket expenses (estimated at $1,500 to $2,000) |
| LENNYS University Maintenance Fee | $50 |
| Late Charge | 1.5% per month or highest applicable legal rate, whichever is higher |
| Operation of Restaurant by Us or Our Appointee in Case of Default | $500 per day plus expenses |
| Daily Fine in Case of Default | $200 per day |
| Operation of Restaurant by Us or Our Appointee in Case of Your Absence, Incapacity or Death | $500 per day plus expenses |
| Failure to Attend Annual Franchise Summit or Continuing Operations Training | Up to $2,500 |
| Relocation | Our reasonable costs, which shall not exceed $10,000 |
| Cost of Enforcement or Defense | All costs including attorneys’ fees |
| Liquidated Damages | Three times the amount of royalties owed for the one-year period prior to termination |
| Insurance Policies (Reimbursement) | Estimated annual premium is $5,000 |
| Indemnification | All costs including attorneys’ fees |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately four weeks |
| Classroom Training | 40 |
| On-the-Job Training | 120 |
| Training Location | Our Restaurant Support Center in Memphis, Tennessee or at another location designated by us or Training Restaurant designated by us |
| Additional Training | Previously-trained and experienced franchisees, their managing owner, managing director, Certified Manager, and/or employees may be required to attend and successfully complete continuing operations training programs at a designated location. No fee is charged for refresher training, but attendees are responsible for room and board, travel costs, salaries, fringe benefits, payroll taxes, unemployment compensation, workers compensation insurance, and all other expenses. Attendance will not be required at more than two programs per calendar year, and these programs will not collectively exceed four business days. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Radius (non-exclusive) |
| Exclusive Territory | No |
| Territory Size | at a minimum, one mile apart from any other Lennys Restaurant |
| Description | You will be granted the non-exclusive right to operate your Restaurant at a specific location approved by us. Your Restaurant shall be located, at a minimum, one mile apart from any other Lennys Restaurant operated by us, any of our affiliates, or another franchisee (“Protected Radius”), subject to our reservation of rights below. However, your Protected Radius may share territory with a protected radius for another Lennys Restaurant. You do not have any right to sublicense or subfranchise within or outside of the Protected Radius and does not have the right to operate more than one Restaurant within the Protected Radius. You will not receive any area, market or territorial rights specific to catering or delivery services. You, and other franchisees, may solicit and accept catering or delivery orders located within the protected radius of another franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $7,500 |
| Renewal Conditions | To obtain a Renewal Franchise Agreement you must have: given written notice of your intention to exercise your option to obtain a Renewal Franchise Agreement six months before the term expires; fully complied with the Franchise Agreement; satisfied all remodeling requirements; satisfied all financial obligations to us; paid the renewal fee; executed a general release of all claims against us; and executed the then current form of the Franchise Agreement, which may have materially different terms and conditions from the original Franchise Agreement that you sign. |
| Transfer Fee | $10,000 |
| Transfer Conditions | For transfers to third parties, a transfer fee of $10,000 is charged and you must: first offer the interests to us; pay all monetary obligations due under the Franchise Agreement; be in full compliance with the provisions of the Franchise Agreement; execute a general release of all claims against us; remain liable for royalty and marketing fee payments for the periods designated in the Franchise Agreement and you must guaranty transferee’s obligations; we must approve price and payment terms; you must do other things we request. The transferee must: satisfy our business standards and requirements; complete all applicable training programs; enter into a new Franchise Agreement or other agreements required by us and guarantee your performance of your obligations to us. |
| Termination for Cause | We can terminate your Franchise Agreement only if you default or commit a material breach and fail to cure or if you commit a material breach that cannot be cured. Curable defaults have cure periods of 3, 5, 10, or 30 days depending on the nature of the default. Non-curable defaults result in immediate termination without notice or cure period. |
| Non-Compete Period | During term: No involvement. After term: 2 years. |
| Non-Compete Details | During the term of the franchise, neither the franchisee nor its owners may directly or indirectly own any legal or beneficial interest in, or render services or give advice to, any competitive business located anywhere, or any entity that grants franchises for competitive businesses. A competitive business is defined as any fast food, quick-service, or fast casual restaurant featuring submarine sandwiches or other food items offered by Lennys, or where submarine sandwich sales constitute 10% or more of its total sales, or any business similar to the Lennys Restaurant concept. After termination or expiration of the franchise, for a period of two years, the non-compete extends to any competitive business operating within the Metropolitan Statistical Area where the restaurant was located, at the restaurant premises, within a ten-mile radius of the restaurant or any other Lennys Restaurant, or any entity granting franchises for competitive businesses. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The Restaurant must be directly and continuously operated and supervised “on-premises” by at least one Certified Manager who has satisfactorily completed our training program or been otherwise approved by us. The Certified Manager need not have an ownership interest. At least one of the following people must devote full time, energy and best efforts to the management and operation of the Restaurant: (1) you (if you are not a business entity); (2) any shareholder who owns 10% or more of the stock in you (if you are a business entity); (3) any general partner (if you are a partnership); or (4) your Certified Manager. |
| Required Suppliers | You will be required to only use approved manufacturers, suppliers and distributors authorized for your Restaurant (“Approved Suppliers”) and approved food products, ingredients, inventory, fixtures, furniture, equipment, signs, stationery, supplies and other items or services necessary to operate the Restaurant (“Approved Supplies”). |
| Supply Restrictions | Certain Approved Supplies may only be available from one source, and we or an affiliate may be that source. You will pay the then-current price in effect for all products and supplies that you purchase from us or our affiliates. We anticipate that, in total, the items that you must purchase from us or designated or approved suppliers will constitute between approximately 75% to 90% of the products, supplies, fixtures, equipment, services, and leases that you must purchase when you first open the Restaurant, and approximately 50% to 80% of your total ongoing purchases once the Restaurant is open. |
| Franchisor Revenue from Suppliers | From January to December 2024, we received $273,182 in rebates from franchisee purchases or leases from suppliers, which represented 9% of our total 2024 revenue of $3,613,753 based on our 2024 financial statements. In 2024, Marimeter LLC received $972 from a supplier of paper receipt rolls, which represents a broker fee. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligations. |
Lennys Grill & Subs Franchise Earnings — Item 19
Average Revenue
$825K
Median Revenue
$737K
Revenue Range
$369K – $1.7M
Sample Size
46 units
Past financial performance does not guarantee future results. Individual results will vary.
Lennys Grill & Subs Litigation & Risk Flags
Clean Litigation RecordLennys Grill & Subs 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.
Lennys Grill & Subs System Growth
Total Units
62
Franchised
58
Company-Owned
4
Lennys Grill & Subs currently operates 58 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 1 | 8 | 56 |
| 2023 | 3 | 0 | 59 |
| 2024 | 1 | 2 | 58 |
Transfers: 6 | Closures: 2
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$3.6M
Net Income
$310K
Total Assets
$1.7M
Audited by Schneider Downs & Co., Inc. for year ending December 31.
Lennys Grill & Subs Franchise — FAQ
The total investment to open a Lennys Grill & Subs franchise ranges from $283,209 to $577,426, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Lennys Grill & Subs charges a royalty fee of 6% of weekly Gross Sales of gross sales, plus a Currently 2% of weekly Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Lennys Grill & Subs 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 Lennys Grill & Subs to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Lennys Grill & Subs franchise owners report average revenue of $825K and median revenue of $737K. This is based on a sample of 46 units. Past performance does not guarantee future results.
Lennys Grill & Subs has been franchising since 2020. The FDD shows an investment range of $283,209-$577,426, a 6% of weekly Gross Sales 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 $25,000 and the total investment ranges from $283,209 to $577,426 depending on location size and market. A minimum of $20,000 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 Lennys Grill & Subs and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Lennys Grill & Subs or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com