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Lenny's Grill & Subs Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Lenny's Grill & Subs Franchise?
To start a Lenny's Grill & Subs franchise, you should prepare for an initial investment ranging from $332,030 to $455,594. This includes a franchise fee of $25,000. Additionally, you'll need to have liquid cash available between $20,000 and $25,000 and a net worth of $300,000 to $500,000. These figures are essential to ensure you can cover startup costs and sustain operations during the early stages of your franchise.
What Are the Ongoing Fees for Lenny's Grill & Subs Franchisees?
Franchisees of Lenny's Grill & Subs are required to pay a royalty fee of 6% on their gross sales, along with a marketing fee of 2%. These fees contribute to the overall support and national marketing efforts that help drive brand awareness and customer traffic to your location. Understanding these ongoing costs is crucial for effective financial planning and ensuring profitability.
What Is the Average Revenue Potential for a Lenny's Grill & Subs Franchise?
The average annual revenue per unit for a Lenny's Grill & Subs franchise is approximately $594,021, with a median revenue of $583,639. Revenue can vary significantly, with the lowest annual revenue recorded at $194,441 and the highest reaching $1,570,452. This revenue potential highlights the opportunity for franchisees to achieve strong financial performance, provided they effectively manage their operations.
How Long Will It Take to Break Even with a Lenny's Grill & Subs Franchise?
Franchisees can expect to break even within 12 months of opening their Lenny's Grill & Subs location. The investment payback period is notably short, averaging around 8 months. These timelines indicate a favorable return on investment, making it an attractive option for aspiring franchise owners looking for quicker financial recovery and sustainable growth.
Lenny's Grill & Subs Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Lenny's Grill & Subs Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 87 | 78 | 73 |
| Net Change YoY | -9 | -5 | |
| Franchised Units | 84 | 77 | 71 |
| Net Change YoY | -7 | -6 | |
| Corporate Units | 3 | 1 | 2 |
| Net Change YoY | -2 | 1 |
Investment Overview
The initial investment to start a Lenny's Grill & Subs franchise ranges from $332,030 to $455,594. This includes a franchise fee of $25,000. Potential franchisees should also be prepared for ongoing costs, including a royalty fee of 6% on gross sales and a 2% marketing fee. A cash reserve of $20,000 to $25,000 is recommended to ensure smooth operations in the early stages.
Financial Performance
Lenny's Grill & Subs demonstrates strong financial potential, with an average annual revenue per unit of $594,021. The median revenue stands at $583,639, while some units report revenues as high as $1,570,452. This indicates a robust market presence and the ability to generate significant income for franchisees.
Breakeven and Payback
Franchisees can expect to break even within approximately 12 months of operation. The investment payback period is notably efficient, averaging around 8 months. This quick return on investment makes Lenny's Grill & Subs an attractive option for aspiring entrepreneurs looking for a profitable franchise opportunity.
Franchise Growth
The growth trajectory of Lenny's Grill & Subs has seen a decline in franchised units from 84 in 2018 to 71 in 2020. This trend suggests a need for strategic planning in market penetration and franchisee support to stabilize and potentially increase unit numbers in the future.
Operating Expenses
The average operating expenses for a Lenny's Grill & Subs franchise are estimated at around $232,153 annually. Key expenses include rent ($63,000), utilities ($12,000), and payroll ($55,075). Understanding these costs is essential for franchisees to manage their budgets effectively and optimize profitability.
Company Background
Lenny's Grill & Subs is a fast-casual restaurant chain known for its fresh, made-to-order subs and salads. Established with a focus on quality ingredients and customer satisfaction, Lenny's has built a loyal customer base. The brand emphasizes a welcoming atmosphere, making it a popular choice for lunch and dinner among families and professionals alike.
Frequently Asked Questions
The initial investment for a Lenny's Grill & Subs franchise ranges from $332,030 to $455,594, which includes the franchise fee and other startup costs.