Penn Station East Coast Subs
Food & Beverage · Quick-Service Restaurants
- Active units
- 322
- Avg unit volume
- $836k
- Royalty
- 2.0%
Franchised, year-end 2023
of weekly Net Sales
About Penn Station East Coast Subs
Penn Station East Coast Subs stands out in the quick-service restaurant industry with a dedication to quality and exceptional customer service since its inception in 1985. Renowned for its freshly grilled subs and crispy, fresh-cut fries, this brand has successfully carved a niche in the competitive sandwich franchise market. With over 30 years of experience in franchising, Penn Station offers aspiring entrepreneurs the chance to join a growing chain that emphasizes operational excellence and customer satisfaction.
Franchisees benefit from comprehensive training and ongoing support while tapping into the thriving $300+ billion quick-service restaurant industry. Initial investment costs range between $507,500 to $858,750, driven by factors such as location and operational needs, with a minimum net worth requirement of $500,000 and liquid assets of $300,000. As a testament to its success, Penn Station has garnered multiple franchise awards, positioning it as one of the top sandwich franchises in the country. Join the Penn Station family and start your entrepreneurial journey today!
Key terms
- Franchise fee
$25k
- Target Growth Area
Initial franchise fee 12500 if new Restaurant is in a Target Growth Area.
- Multi-Store Incentive Program (2024)
For MUAs signed 1/1/2024–12/31/2024 for at least 5 Restaurants in 36 months: initial franchise fee 12500 per Restaurant plus royalty abatements.
- Brand fund
2.0% of Net Sales
- Local advertising
2.0% of Net Sales
- Multi-Unit Agreement Territory Fee
$4k
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2026.
Growth
- Total locations321
Franchised units open at year-end
- New openings6
Gross new units opened during the calendar year
- 1-year unit growth rate-0.3%
Net unit growth versus prior year
- 3-year unit CAGR-0.2%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio6.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$630k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open4 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate—
Percent of net sales paid to the franchisor
- Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns16.1%
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 233 of 332 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.