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Penn Station East Coast Subs Franchise Fee (2026)

Fast Food & QSR ยท Franchise Info
Initial Franchise Fee $25,000
๐Ÿ“Š Total Investment: $386Kโ€“$655K ๐Ÿ’ฐ Royalty: 8% ๐Ÿ“ฃ Ad Fund: 1%

About Penn Station East Coast Subs

Penn Station East Coast Subs is a fast-casual sub and cheesesteak franchise with 300+ locations primarily in the Midwest and Southeast, founded in 1985 in Cincinnati, Ohio. Known for its fresh-baked bread, hand-cut fries, and Philadelphia cheesesteaks, Penn Station offers a step up from typical sub chains.

Penn Station's fresh-baked sub rolls โ€” made on-site daily โ€” and hand-cut fresh fries create a genuine quality advantage over competitors using pre-made components. The brand's Midwest concentration means less direct competition and lower real estate costs vs. coastal markets.

Fee Breakdown

Initial Franchise Fee$25,000
Total Investment Range$386Kโ€“$655K
Royalty Fee8%
Marketing / Ad Fund1%
Min. Net WorthContact franchisor
Liquid Capital RequiredContact franchisor

Based on publicly available FDD data. Always review current Franchise Disclosure Document before investing.

Pros & Cons

โœ… Pros

  • โœ“ Fresh-baked bread and hand-cut fries create genuine quality differentiation
  • โœ“ Strong regional brand loyalty in Midwest and Southeast markets
  • โœ“ Low advertising fund (1%) maximizes franchisee margins
  • โœ“ Quality positioning supports above-average ticket prices

โš ๏ธ Cons

  • โœ— Very high royalty (8%) significantly impacts per-revenue-dollar profitability
  • โœ— Limited brand awareness outside core Midwest/Southeast markets
  • โœ— Sub sandwich category competition is intensifying nationally

Frequently Asked Questions

How much is the Penn Station East Coast Subs franchise fee?
The Penn Station East Coast Subs initial franchise fee is $25,000. Total investment ranges from $386Kโ€“$655K.
What is the total cost to open a Penn Station East Coast Subs franchise?
Total investment to open a Penn Station East Coast Subs franchise ranges from $386Kโ€“$655K, including the $25,000 franchise fee, real estate, build-out, equipment, and working capital.
What is Penn Station East Coast Subs's ongoing royalty fee?
Penn Station East Coast Subs charges a royalty of 8% on gross sales. An additional 1% marketing fund contribution is also required.
Is Penn Station East Coast Subs a good franchise to own?
Penn Station East Coast Subs has an established brand and proven business model. Review the current Franchise Disclosure Document (FDD) and speak with existing franchisees to evaluate whether it fits your market and goals.
How do I apply for a Penn Station East Coast Subs franchise?
To apply for a Penn Station East Coast Subs franchise, contact their franchise development team directly or submit a request through our contact form. You'll need to meet their financial qualification requirements and complete their discovery process.

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