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Penn Station East Coast Subs Frequently Asked Questions
What is Penn Station East Coast Subs Fee Structure per Restaurant?
Multi Unit Development Agreement: $3,500 per restaurant reserves the development rights to each territory.
Initial Franchise Fee: $25,000 per restaurant.
Royalty: 2%-8% (varies by sales volume).
National Advertising Fee: 2%.
Local Marketing Co-op: Varies by market.
How much money will I make if I open a Penn Station restaurant?
As part of the franchise qualification process, they will provide you our Franchise Disclosure Document (“FDD”) which contains system financial averages detailed under Item 19. They also highly recommend that you speak with other Penn Station franchisees as part of your due diligence process. A typical Penn Station is approximately 1,584 sq. ft. of leased space in a strip center and the average build-out cost is approximately $465,279. (This amount includes the franchise fee, legal fees, deposits, architectural costs, opening inventory and training.)
If I franchise with Penn Station, am I personally required to work in or manage my restaurant?
They require that each Penn Station franchise group appoint one “Managing Owner” that will be responsible for the operational performance of the restaurant and attend thier award winning four-week training program in Cincinnati, OH. They must have restaurant management experience comparable to the number of restaurants you will develop. Additionally, the proposed Managing Owner must own a minimum 10% equity in and live near to the market where your restaurants will be located. They also require that each group appoint a "Designated Owner" that will be thier primary point of contact and liason for the franchise.
Does Penn Station East Coast Subs provide training?
Yes, they will provide training to open your restaurant. The training is four weeks in Cincinnati, OH.
Do Penn Station restaurants deliver and offer online ordering?
Yes, many franchisees currently provide delivery via third party delivery. They also offer online ordering.