How much does a Port of Subs franchise cost?
A traditional Port of Subs Restaurant operated from a leased facility has an estimated initial investment of $419,895 to $938,570. That is the 2026 Franchise Disclosure Document range for one restaurant under a Franchise Agreement. It is not the same as the $25,000 Initial Franchise Fee, the official website’s financial qualification thresholds, or the separate Development Fee for a three-to-nine restaurant commitment.
The 2026 Item 7 total covers costs before opening and estimated needs during the first three months of operation. The estimate assumes a leased Port of Subs Restaurant and includes $15,000 to $30,000 of Additional Funds. It does not include cash needed to service financing or guarantee that three months of working capital will be sufficient.
Data basis. Legal franchisor: POS Franchising, LLC. FDD issuance date: May 28, 2026. Applicable offer: one Port of Subs Restaurant under the Franchise Agreement, plus an optional Area Development Agreement for three to nine Restaurants. Principal cost sources: Items 5, 6, and 7, with cost-relevant provisions from Items 8, 10, 11, and 17. Information checked July 21, 2026.
The franchisor’s official investment page reproduces the $419,895 to $938,570 Item 7 range. A matching 2026 FDD was not located on a franchise-controlled public website, so FDD Item and page references in this article are intentionally unlinked. Wisconsin’s active franchise registration record lists POS Franchising, LLC as an active filing.
Sources: 2026 Port of Subs FDD cover and Items 1, 5–7; official Port of Subs investment information; Wisconsin Department of Financial Institutions active filings.The endpoints should be read as disclosed boundaries, not as two complete project bids. A low amount in one category does not establish that every other category will also land at its low amount, and a high amount in one category does not prove the whole project will reach the official maximum. Site-specific proposals should preserve the FDD categories so omitted deposits, subscriptions, travel, permits, and reserves remain visible.
Paid in a lump sum when the Franchise Agreement is signed.
Cover-page amount within the overall Item 7 investment.
Estimated for pre-opening and the first three operating months.
Of Gross Sales, due weekly after each Sales Week.
Brand Fund plus Local Store Marketing, both based on Gross Sales.
Net worth / minimum liquidity, plus a 700+ credit score.
Selected 2026 low-to-high ranges are plotted on a common $0 to $475,000 scale. Exact labels remain the controlling figures.
Interpretation: premises build-out is the largest disclosed source of range variation. Equipment, occupancy obligations, and technology are also material, but they do not approach the high-end construction exposure.
Source: 2026 Port of Subs FDD, Item 7, pp. 20–23. Official figures; no midpoint or “typical” case was created.What is included in the $419,895 to $938,570 range?
The 2026 Item 7 total combines contract fees, site and professional costs, construction, occupancy, equipment, technology, opening inventory, marketing, insurance, permits, deposits, and Additional Funds. The estimate is for a Port of Subs Restaurant operated from a leased facility. Item 7 does not present a separate current investment range for a nontraditional host location, drive-thru format, freestanding new build, conversion, or resale.
Contract, site, training, and professional costs
These amounts are paid at signing, when invoiced, or as professional work is performed. The Training Fee and Expenses line includes the $5,000 Training Fee plus travel and related costs for required attendees.
| Item 7 expenditure | Low | High | Payment timing |
|---|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 | Upon signing the Franchise Agreement |
| Real Estate and Construction Support Fee | $5,000 | $5,000 | Upon signing the Franchise Agreement |
| Site Review | $0 | $1,800 | As invoiced if an on-site review is required |
| Training Fee and Expenses | $7,500 | $9,000 | Training Fee at signing; other expenses as agreed |
| Professional Fees: Architectural, Engineer, and Legal Counsel | $12,500 | $24,000 | As agreed with third parties |
| Construction Management | $12,500 | $17,500 | As agreed with third parties |
A qualifying honorably discharged United States veteran receives a 50% discount on the Initial Franchise Fee for the first Franchise Agreement. Applied to the disclosed $25,000 fee, that is a derived $12,500 Initial Franchise Fee. The program is limited to new franchisees, is unavailable to existing franchisees and regional developers, and may be modified or discontinued.
Premises, equipment, signage, and technology
The largest cost uncertainty sits in the physical Restaurant. The Item 7 notes assume leased space and estimate monthly rent at $4,500 to $10,500, but the table combines rent, common-area maintenance, lease taxes, security deposits, and utilities in a broader $0 to $69,700 line. The franchisor’s current real-estate page describes inline, endcap, drive-thru, freestanding, and selected nontraditional opportunities. Those website format descriptions do not create separate Item 7 ranges.
| Item 7 expenditure | Low | High | Payment timing |
|---|---|---|---|
| Leasehold Improvements and Construction Costs | $183,895 | $475,000 | As incurred before opening |
| Rent, CAMs, Lease, Taxes, Lease and Utility Security Deposits | $0 | $69,700 | Monthly or as agreed |
| Signage, Graphics, and Interior Décor Items | $6,500 | $18,375 | As incurred before opening |
| Furnishings, Fixtures, and Standard Equipment | $96,000 | $160,000 | As agreed with vendors |
| POS and Technology Systems, including Initial Setup | $26,500 | $38,695 | As incurred before opening |
Opening inventory, insurance, marketing, permits, and reserves
The final group includes operating assets and short-term reserves. Additional Funds are already inside the official total and should not be added a second time. The FDD says the $15,000 to $30,000 estimate covers miscellaneous expenses before opening and during the first three months, including items such as advertising, payroll, insurance, and transitional living expenses that may repeat monthly.
| Item 7 expenditure | Low | High | Payment timing |
|---|---|---|---|
| Insurance | $2,000 | $10,000 | As arranged; estimate covers required insurance during the first year |
| Initial Inventory and Smallwares | $10,000 | $25,000 | Before opening |
| Grand Opening Marketing | $15,000 | $17,500 | As incurred; minimum program amount due 90 days before expected opening |
| Licenses, Fees, and Deposits | $2,500 | $12,000 | As incurred |
| Additional Funds — Initial 3 Months | $15,000 | $30,000 | As incurred before opening and during the first 90 days |
The 2026 FDD range is not a universal price for every location type. Item 7 is based on a leased Restaurant and references a 1,100-to-1,400-square-foot assumption for furnishings, fixtures, and equipment. The official real-estate page currently uses broader site guidelines, including traditional space of approximately 1,200 to 1,800 square feet and drive-thru space of approximately 1,500 to 2,000 square feet. A buyer considering a host venue, drive-thru, freestanding pad, conversion, or unusual footprint should obtain written confirmation of the applicable construction and equipment assumptions.
When is the initial money paid?
The first fixed payments are due when the Franchise Agreement is signed, while most build-out, equipment, technology, inventory, and deposit costs are paid later as the site advances. The 2026 FDD separates contractual payments from third-party development costs, which means the buyer does not pay the entire $419,895 to $938,570 total to POS Franchising, LLC at one time.
Sign the Franchise Agreement
Pay the $25,000 Initial Franchise Fee, $5,000 Real Estate and Construction Support Fee, and $5,000 Training Fee. These fixed franchisor payments total $35,000 and are described as fully earned and nonrefundable when paid.
Secure and evaluate the site
Pay professional fees, construction management costs, lease obligations, and a possible Site Review reimbursement of up to $1,800. The first month’s rent may become due when the lease is signed.
Fund the Grand Opening Program
The minimum $15,000 Grand Opening Program Amount is due 90 days before the expected opening. The FDD estimates total Grand Opening Marketing of $15,000 to $17,500 and requires reimbursement of agreed additional advertising costs within 15 days after notice.
Pay development and opening vendors
Leasehold Improvements, furnishings, equipment, signage, POS and Technology Systems, insurance, licenses, Initial Inventory, and Smallwares are paid as incurred, before opening, or under vendor terms.
Carry the first three operating months
Use the $15,000 to $30,000 Additional Funds allowance for pre-opening and first-90-day commitments. The FDD cautions that a franchisee should not plan to draw income during the start-up and development stage and may need more than the estimate.
The cover-page $50,000 to $54,300 paid to the franchisor or affiliates is part of the Item 7 total, not an extra charge. It reflects the $25,000 Initial Franchise Fee, $5,000 Real Estate and Construction Support Fee, $5,000 Training Fee, $15,000 to $17,500 Grand Opening Program amount, and a possible Site Review reimbursement of up to $1,800.
Which fees continue after the Restaurant opens?
The core continuing obligations are a 6% Royalty Fee, a 4% Brand Fund Contribution, and a 3% Local Store Marketing requirement, each based on the Gross Sales definition in Item 6. Royalty is due weekly, Brand Fund payments are due monthly, and Local Store Marketing is spent as incurred. These percentages should not be converted into annual dollar amounts without actual Gross Sales.
All three bars use the same denominator: Gross Sales as defined in Item 6. Heights show current disclosed percentages, not a forecast of dollars.
weekly
monthly
as incurred
Interpretation: the current disclosed Royalty Fee is the largest percentage obligation. The Brand Fund Contribution may increase by no more than one percentage point of Gross Sales per year, up to 6%. A Local Advertising Cooperative contribution of up to 3% of Gross Sales is credited toward the 3% Local Store Marketing obligation rather than automatically added on top.
Source: 2026 Port of Subs FDD, Item 6, pp. 16–20 and Item 11, pp. 32–34. Official current rates.| Continuing obligation | Amount or basis | Timing | Cost interpretation |
|---|---|---|---|
| Royalty Fee | 6% of Gross Sales | Wednesday after each Sales Week | Paid to the franchisor by EFT |
| Brand Fund Contribution | 4% of Gross Sales | 15th day of each month | May rise by up to 1% per year to a maximum of 6% |
| Local Store Marketing | 3% of Gross Sales | As incurred | Direct approved local advertising expenditure |
| Local Advertising Cooperative | Up to 3% of Gross Sales | Monthly if established | Credited toward Local Store Marketing |
| Technology Fee paid to franchisor | Currently $0 | Monthly if established | No current formula or maximum cap is disclosed |
| Third-party technology subscriptions | About $1,000–$1,495 per month | Monthly | POS, software, music, kiosks, menu boards, service fees, and PCI compliance |
| Computer System maintenance and support | At least $500–$1,500 annually | As incurred | Maintenance, updating, upgrading, and support contracts |
| Annual Convention registration | Currently $250, plus attendee expenses | Before convention | Transportation, meals, and lodging remain the franchisee’s cost |
The official franchise FAQ checked July 21, 2026 states an “advertising fee” of 1% of Gross Sales, while the May 28, 2026 FDD states a 4% Brand Fund Contribution. The current FDD is the controlling source for the disclosed franchise offer, so this article uses 4% and the FDD’s permitted increase to a 6% maximum. A prospective franchisee should ask POS Franchising, LLC to reconcile the official FAQ wording in writing before signing.
What changes under a three-to-nine Restaurant Area Development Agreement?
An Area Development Agreement requires a nonrefundable Development Fee of $65,000 to $185,000 at signing. The fee is calculated as $25,000 for the first Restaurant plus $20,000 for each additional Restaurant. It credits all Initial Franchise Fees for the Restaurants developed under that agreement, so a separate Initial Franchise Fee is not due when each related Franchise Agreement is later signed.
Development Fee ladder
The values between the disclosed endpoints are direct arithmetic from the 2026 FDD formula, not separate franchisor estimates.
The $65,000 to $185,000 Area Development Agreement total is only the Development Fee. It is not the aggregate capital required to build three to nine Restaurants. Each location will require its own then-current Franchise Agreement and its own site, construction, equipment, opening inventory, technology, marketing, and working-capital expenditures. Development deadlines and the Execution Conditions also determine when later Restaurants may proceed.
The Area Development Agreement is also distinct from the Regional Developer Program. The 2026 restaurant FDD says the Regional Developer Program is governed by a separate disclosure document and Regional Developer Agreement. The franchisor’s Regional Developer model page therefore should not be used to substitute a Regional Developer investment range for the Restaurant or Area Development Agreement costs analyzed here.
How much liquid capital and net worth does Port of Subs require?
The official Port of Subs single-unit materials checked July 21, 2026 state minimum qualifications of $300,000 net worth, $150,000 in liquid assets, and a 700+ credit score. These are screening thresholds, not an alternative to the $419,895 to $938,570 Estimated Initial Investment and not a promise that a lender will fund the difference.
- Estimated Initial Investment
- $419,895 to $938,570 in the 2026 FDD for one leased Restaurant, including the first three months of Additional Funds.
- Liquid Assets
- The official FAQ describes liquid cash as checking, savings, money-market accounts, stocks, and bonds. The stated minimum is $150,000.
- Net Worth
- The official FAQ defines net worth as total assets minus liabilities. The stated minimum is $300,000.
- Credit Score
- The official single-unit and FAQ pages state a minimum score of 700.
- Personal Guarantee
- The 2026 FDD says principals must jointly and severally guarantee payment obligations under the Franchise Agreement and Area Development Agreement.
The current qualification figures appear on the official single-unit page and official franchise FAQ. Because website qualification criteria can change independently of the annual FDD, a prospective franchisee should verify the figures during the qualification process and distinguish cash available to invest from total assets.
Sources: official Port of Subs single-unit and FAQ pages checked July 21, 2026; 2026 Port of Subs FDD, Item 1 pp. 8–10 and Item 7 pp. 20–23.Does the franchisor finance the initial investment?
No. Item 10 states that neither POS Franchising, LLC nor its affiliates offers direct or indirect financing, and they do not guarantee notes, leases, or other obligations. Any bank loan, equipment lease, landlord allowance, investor capital, or other third-party funding remains outside the franchisor’s financing commitment and may create cash needs not included in Item 7.
Which later events can create additional fees?
Port of Subs franchisees can incur material costs when they transfer, renew, relocate, remodel, default, request extra training, seek an alternative supplier, or terminate after default. These charges are not all part of the opening investment because they arise only if a future event or contract condition occurs.
What does the official investment range not fully resolve?
The $419,895 to $938,570 range is a disclosure estimate, not a guaranteed construction bid or financing plan. The largest unresolved variables are the approved site, lease economics, space condition, local permits, landlord contributions, construction scope, vendor pricing, shipping, required upgrades, insurance location, payroll needs, and the duration of the development period.
What is the capital requirement in practical terms?
For one leased traditional Port of Subs Restaurant, the verified 2026 starting range is $419,895 to $938,570, including the $25,000 Initial Franchise Fee and $15,000 to $30,000 of Additional Funds for the first three months. The official website separately states $300,000 net worth, $150,000 liquidity, and a 700+ credit score as single-unit qualification thresholds. After opening, the principal sales-based obligations are the 6% Royalty Fee, 4% Brand Fund Contribution, and 3% Local Store Marketing requirement. The most important unresolved number is the site-specific cost of premises, construction, equipment, and occupancy for the exact format the buyer intends to develop.