Lennys Beyond the Bread: Unpacking the Investment—The Real Cost of Buying A Sub Shop from our Franchise

One of the best aspects of entrepreneurship is the ability to grow a business from the ground up. It is an exciting and often challenging process, but one you can take pride in. However, building a business from scratch takes a significant investment in time and money. Some entrepreneurs choose to take that entire burden onto their shoulders, and others opt to join an established company, which helps reduce the initial investment and lowers some of the risks involved in most startups. At Lennys Grill & Subs, our goal is to get new franchisees on their feet and support them with everything they need to open their sub franchise. To accomplish this, we will work hard to ensure our restaurant franchise costs remain affordable. Below, we’ll explore what a prospective franchisee can realistically expect when they become part of the Lennys family.

How Much It Costs to Buy a Sub Shop

There is no hard and fast rule governing the cost of restaurant franchises. Every corner of the food franchise industry requires varying degrees of investment. 

At Lennys, we proudly specialize in sub sandwiches, so our initial franchise investment is best compared to the broader sub-shop category. As of 2020, the cost to open a new sub shop with one of the nation’s largest sub sandwich franchises ranged from $209,449 to $1,347,580. And that is just the initial investment!

With such a large investment on the front end, becoming profitable takes time and patience, along with hard work. At Lennys, we focus on tightening costs as much as possible, making our initial investment significantly more affordable than other sub franchises. When you choose to become part of the Lennys family, you can expect to invest between $279,564 and $573,824 total to get your sub shop open and operating. Let’s break down what that entails.

What Is Involved in Restaurant Franchise Costs?

The true picture of how much it costs to buy a restaurant can be found by breaking down all the components of a franchise investment.

Licenses and Permits

Operating a restaurant requires licenses and permits. The ultimate cost for these will vary by municipality.

Professional Fees

Expect to pay some legal fees for contract review and accounting fees for financial analysis. We have found that those costs range between $10,000 and $20,000.

Initial Franchise Fee

A $ $25,000 fee is due when you sign the franchise agreement. It is the core investment required before starting your own Lennys Grill & Subs.

Renovations and Repairs

Once you find a space for your new Lennys, it will likely need some work. Depending on its condition, renovations and repairs will likely be necessary. 

Equipment and Furnishings

Part of getting your new building in working order is purchasing equipment, furnishings, and POS systems. Our dedicated team will help you find the best local or national suppliers to ensure you have everything you need to set you up for success. You can expect to pay anywhere between $90,000 and $225,000 for furniture, equipment, fixtures, and other items.

Training, Marketing, and Signage

You can have the most beautiful restaurant space possible, but if no one knows where you are or your team doesn’t understand the job, you won’t be successful. We work with you well before your grand opening date to equip you with the tools and resources necessary for success. You can expect to pay between $2,500 to $8,000 for training expenses, about $10,000 for pre-opening and opening marketing, and between $6,000 and $15,000 for signage.

Working Capital

In addition to paying for everything you need to open your Lennys, you also need to have at least three months of additional funds on hand. Having working capital will help you get through the first few months of your business and hold you through until you can begin turning a profit.

To learn more about your initial sub shop franchise cost and total investment fees associated with franchising with Lennys, please review item number 7 of our most recent Franchise Disclosure Document. 

Are you ready to open the next Lennys Grill & Subs franchise location? We would love to speak with you! Contact our franchising team today to learn more about our business opportunities!