About PEPPO'S Franchise
Peppo's is a franchise restaurant concept specializing in submarine sandwiches along with other food items and soft drinks.
As a Peppo's franchisee, you operate a quick-service restaurant using the Peppo's trade name and proprietary system, serving customers looking for quality sub sandwiches.
The target customers include the general public seeking convenient meal options, with competitors ranging from home cooking to other submarine sandwich restaurants.
PEPPO'S Franchise Cost & Fees
Minimum Investment
$225K
Average Investment
$276K
Maximum Investment
$327K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% of Gross Sales (currently 1% of Gross Sales) | National brand fund |
| Total Investment Range | $225,400 – $327,100 | Includes build-out, inventory, working capital |
The investment range of $225K–$327K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Up to 4% of Gross Sales (currently 1% of 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 |
| Travel and Living Expenses During Training | $9,000 | $13,000 |
| Initial Inventory | $8,000 | $10,000 |
| Security Deposit | $4,000 | $16,000 |
| Rent (Initial 3 months) | $6,000 | $24,000 |
| Real Estate Broker Fee | $0 | $3,000 |
| Utility Deposits | $2,000 | $2,000 |
| Leasehold Improvements | $30,000 | $52,000 |
| POS System | $1,000 | $1,500 |
| Computer Hardware and Software | $6,500 | $7,000 |
| Equipment | $60,000 | $75,000 |
| Furniture, Fixtures & Decor | $8,000 | $12,000 |
| Small Wares | $4,500 | $6,000 |
| Signage | $6,000 | $10,000 |
| Business Licenses & Permits | $300 | $500 |
| Office Equipment & Supplies | $1,500 | $2,000 |
| Architect Fees | $5,000 | $8,000 |
| Professional Fees | $3,000 | $5,000 |
| Business Insurance | $2,000 | $3,000 |
| Grand Opening Advertising | $2,100 | $2,100 |
| Initial Marketing Materials | $1,500 | $3,000 |
| Employee Wages During Training | $5,000 | $7,000 |
| Miscellaneous | $5,000 | $10,000 |
| Additional Funds for First 3 Months | $30,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 80% of then-current initial franchise fee for transfer to new franchisee; 60% for transfer to existing Peppo's franchisee; $3,000 for ownership changes not affecting majority owner |
| Renewal Fee | 50% of the then-current initial franchise fee for a non-discounted first franchise |
| Technology Fee | $150 per month |
| Audit Fee | Estimated at $5,000 |
| Local Advertising and Promotions | At least 1% of Gross Sales |
| Ongoing Training | $400 per day plus travel expenses |
| Additional Assistance | $400 per day plus travel expenses |
| Late Fee | Greater of $200 or amount stated in Operations Manual |
| Interest | 2% per month |
| Lease Renewal Fee | Up to $3,500 |
| Relocation Fee | 50% of then-current initial franchise fee |
| Mystery Shopper Fee | Up to $250 per mystery shop |
| Third-Party Quality Assurance Audit Fee | Up to $350 per audit |
| Customer Servicing Fee | $300 plus actual costs |
| Evaluation of Suppliers | Up to $5,000 per request plus expenses |
| Referral Fee | $25,000 |
| Management Fee | Greater of $500 per day or 10% of Gross Sales plus expenses |
| Fines for Non-Compliance | Greater of $150 or as stated in Operations Manual |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 4 weeks |
| Classroom Training | 32 hours |
| On-the-Job Training | 120 hours |
| Training Location | Palos Hills, Illinois |
| Additional Training | Pre-opening and opening on-the-job supervision at franchisee's location for approximately 10 days. Up to 10 days per calendar year of refresher training may be required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | No exclusive territory granted. Franchisee operates from a specific accepted location. The franchisor may enfranchise or operate any other Peppo's restaurant anywhere and may use other channels of distribution including the Internet within the franchisee's area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional 5-year terms |
| Renewal Fee | 50% of the then-current initial franchise fee for a non-discounted first franchise |
| Renewal Conditions | Written notice of intent to renew at least 6 months but no more than 12 months prior to expiration; substantial compliance during entire term; sign new franchise agreement and release; refurbish or remodel premises; replace furnishings and equipment to current standards; pay renewal fee. New agreement may contain materially different terms. |
| Transfer Fee | 80% of then-current initial franchise fee for transfer to new franchisee; 60% for transfer to existing Peppo's franchisee; $3,000 for ownership changes not affecting majority owner; plus $5,000 non-refundable deposit when transfer is submitted |
| Transfer Conditions | Transferee qualifies and is approved; all amounts paid in full; not in default; transferee completes training; disclosure documents received; current franchise agreement signed; transfer fee paid; assets refurbished; lessor consent obtained; general releases signed; right of first refusal declined by franchisor |
| Termination for Cause | Non-payment: 10 days to cure; failure to submit reports: 30 days to cure; other curable breaches: 30 days to cure. Non-curable defaults include: failure to pass training, failure to provide lease within 6 months, failure to open within 9 months, insolvency, abandonment, lease termination, under-reporting Gross Sales twice in 2 years, felony conviction, unauthorized transfer, repeated defaults even if cured. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination or expiration, no restaurant featuring submarine sandwiches within 7 miles of former location or within 7 miles of any other Peppo's restaurant. No franchising a similar business for 2 years. No solicitation of former customers for 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must designate an Operating Principal who shall devote full time and best efforts to the Franchised Business. The Operating Principal shall have full authority regarding all operational decisions. You may be the Operating Principal or designate another person who has completed required training and been pre-approved. The Franchised Business must at all times be under continuous, direct, on-premises supervision of you, the Operating Principal, or a designated manager who has passed the training program. |
| Required Suppliers | You must purchase or lease only from required or approved suppliers for accounting, architecture, construction, food and beverage, equipment, technology, packaging, signage, and comparable items. Currently the franchisor is not an approved supplier. A minority owner of the franchisor owns the required accounting and financial services firm. |
| Supply Restrictions | You must use only approved suppliers. To have an alternate supplier approved, you must submit specifications, samples and information along with a fee not expected to exceed $5,000 per request. Approval or disapproval within six months. Franchisor may revoke approval at any time. |
| Franchisor Revenue from Suppliers | The franchisor may but does not currently derive revenue from franchisee purchases. Required purchases represent 70-75% of overall purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee any note, lease or obligation. |
PEPPO'S Franchise Earnings — Item 19
Average Revenue
$688K
Median Revenue
$690K
Revenue Range
$634K – $738K
Sample Size
1 units
Past financial performance does not guarantee future results. Individual results will vary.
PEPPO'S Litigation & Risk Flags
Clean Litigation RecordPEPPO'S 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.
PEPPO'S System Growth
Total Units
1
Franchised
0
Company-Owned
1
PEPPO'S currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 1 states: IL
PEPPO'S Franchise — FAQ
The total investment to open a PEPPO'S franchise ranges from $225,400 to $327,100, 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.
PEPPO'S charges a royalty fee of 6% of Gross Sales of gross sales, plus a Up to 4% of Gross Sales (currently 1% of Gross Sales) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the PEPPO'S 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 PEPPO'S to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, PEPPO'S franchise owners report average revenue of $688K and median revenue of $690K. This is based on a sample of 1 units. Past performance does not guarantee future results.
PEPPO'S has been franchising since 2023. The FDD shows an investment range of $225,400-$327,100, a 6% of 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 $225,400 to $327,100 depending on location size and market. 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 PEPPO'S and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with PEPPO'S or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com