How much does it cost to open a Lenny’s Sub Shop?
The initial investment ranges between $216,500 and $369,000. Once you complete your application we will send you a copy of our FDD with all the details.
How much can I make?
During your investigation of Lenny’s, we’ll introduce you to existing franchise owners who can give you a realistic picture of life as a Lenny’s owner. We also have a financial performance representation in our FDD that will give you more insight.
Do I need restaurant experience?
While having prior restaurant experience is certainly an advantage, many of our franchisees never had any restaurant experience. Our concept is highly teachable and we do an outstanding job of training our franchisees how to run their business.
What kind of franchisee is Lenny’s recruiting?
At Lenny's we specifically recruit two types of franchisees (some candidates are a combination of both types): 1) Owner/Operator who will be actively involved in their own success and 2) well-capitalized franchisees who have a desire to develop a multi-unit restaurant company, area exclusivity, and preferably some restaurant experience. Our initial franchise fee structure is such that it provides the ability for franchisees to buy or lock up large areas or territories with operational and competitive exclusives, providing assurance that they will be the only Lenny's franchisee in that market.
What are the financial qualifications?
Most opportunities require about $50k in cash and a net worth more than $400k. However, there may be some available deals with some existing restaurants that require less capital resources.
Is third party financing available?
While Lenny’s does not offer an in-house financing program, qualified applicants will be directed to third party lenders who have worked with us in financing Lenny's restaurants. While each lender will evaluate you on a case by case basis, we have found that an approved franchisee has been able to obtain financing. We are also registered for expedited processing for SBA (Small Business Administration) loans.
What is the franchise fee?
The franchise fee for one location is $25,000. However, we discount our fees based on number of restaurants signed up for. Further explanation is provided in the FDD you will obtain after completing the application.
What are the Lenny’s royalties?
Lenny’s charges 6% of weekly gross sales (net of any taxes) for use of our brand, our trademarks, our systems, our recipes, and for continuing service and support, plus a weekly charge of 2% of weekly gross sales (net of any taxes) to cover marketing expenses.
Does Lenny’s assist with site selection?
Yes, we have a proven real estate system to help you with site selection and lease negotiations. From broker selection to market scouting and site evaluation our experienced real estate staff will assist throughout the entire process. Though selecting a site is ultimately the franchisee’s responsibility, we work hard to make the process as simple and efficient as possible.
What is the average size of a Lenny’s?
1600 – 2000 square feet.
How do I find a location?
Working with our network of brokers, Lenny’s will help you select a location that meets Lenny’s site criteria.
How will Lenny’s train me?
A minimum of five weeks of training is provided for you and two other key people from your organization. Training is currently conducted at our corporate office in Memphis and our designated training restaurant. We also take you on the road with us to open new restaurants prior to opening your first Lenny’s. This gives you a chance to practice all that you learned during your training as well as work on your proficiency. New operators have found this hands-on experience to be an invaluable training opportunity to prepare them for their own opening day. When it does come time to open your restaurant we will help you pre-train your new staff a couple of days beforehand. Plus, our training team will be with you for several more days to help get your restaurant off to a successful start. After that, we supply ongoing training opportunities and visit your restaurant from time to time to ensure you are receiving all the support you need, and that you are staying true to the Lenny’s brand. Of course, we are always available to you by phone when you need us.