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Lenny's Sub Shop

Lenny's Sub Shop

Franchising since 1998 · 17 locations

The total investment to open a Lenny's Sub Shop franchise ranges from $72,000 - $310,500. The initial franchise fee is $72,000. Ongoing royalties are 6% plus a 2% advertising fee. Lenny's Sub Shop currently operates 17 locations (17 franchised). The top SBA 7(a) lenders for Lenny's Sub Shop are Hancock Whitney Bank, Primis Bank and Wells Fargo Bank. PeerSense FPI health score: 28/100.

Investment

$72,000 - $310,500

Franchise Fee

$72,000

Total Units

17

17 franchised

FPI Score
High
28

Proprietary PeerSense metric

Limited
Capital Partners
17lenders available

Active capital sources verified for Lenny's Sub Shop financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

Growing (10-24 loans)

High Confidence
28out of 100
Limited

SBA Lending Performance

SBA Default Rate

14.3%

3 of 21 loans charged off

SBA Loans

21

Total Volume

$3.7M

Active Lenders

17

States

9

Top SBA Lenders for Lenny's Sub Shop

What is the Lenny's Sub Shop franchise?

The Lennys Sub Shop franchise presents an intriguing opportunity within the dynamic Limited-Service Restaurant category, carving out its niche in the competitive culinary landscape. Headquartered in Tallahassee, Florida, this brand operates within a segment characterized by robust consumer demand for quick, convenient, and satisfying meal options. The essence of a sub shop, like the Lennys Sub Shop franchise, lies in its ability to deliver customizable, freshly prepared sandwiches, often catering to a diverse clientele seeking both speed and quality. This market positioning allows it to capture a significant share of daily meal occasions, from hurried lunches to casual dinners, appealing to individuals and families alike. The appeal of such a concept is rooted in the universal popularity of sandwiches, a staple in American diets that offers immense versatility in ingredients, flavors, and dietary accommodations. Establishing a presence in the Limited-Service Restaurant sector means navigating a landscape where efficiency, consistent product delivery, and a strong value proposition are paramount for sustained success. The brand’s operational footprint, while currently at 15 total units, signifies an established presence with a foundation for potential expansion, albeit on a more focused scale compared to larger, more mature franchise systems. This size suggests a brand that is past its initial startup phase but still possesses considerable room for market penetration and brand development, particularly in regions where its distinctive offering can resonate with local consumer preferences. The strategic placement of a Lennys Sub Shop franchise within communities often capitalizes on high-traffic areas, ensuring visibility and accessibility to its target demographic, further solidifying its market position within the bustling food service industry. The inherent simplicity and broad appeal of the sub concept provide a resilient business model, capable of adapting to evolving consumer tastes while maintaining its core identity as a provider of quality, convenient meals.

The broader industry landscape for Limited-Service Restaurants, specifically within the sandwich and sub segment, continues to demonstrate remarkable resilience and consistent growth, driven by fundamental shifts in consumer lifestyles and dining habits. The demand for convenient food solutions remains a powerful catalyst, as busy schedules increasingly necessitate quick, accessible, and satisfying meal options that do not compromise on flavor or perceived freshness. This trend has propelled the Limited-Service Restaurant category to the forefront of the food service industry, with a substantial and ever-expanding market size that continues to attract both established players and emerging brands. Consumer preferences are increasingly leaning towards customization, allowing patrons to tailor their meals to specific tastes, dietary requirements, and portion sizes, a characteristic inherently well-suited to the sub shop model. Furthermore, there is a growing emphasis on ingredient quality and transparency, with diners seeking options perceived as fresher, healthier, or more ethically sourced. Brands that can effectively communicate and deliver on these attributes gain a significant competitive edge within this crowded market. The convenience factor extends beyond just speed of service to include ease of ordering, whether through in-store visits, online platforms, or mobile applications, reflecting a broader digital transformation across the food service sector. The segment also benefits from its adaptability to various consumption occasions, serving as a reliable choice for breakfast, lunch, dinner, and even snacking, which expands the potential revenue streams for operators. The enduring appeal of sandwiches as a versatile and universally enjoyed food item ensures a stable demand base, making the Limited-Service Restaurant sub category a perpetual area of interest for entrepreneurs and investors seeking a proven business model within the food industry’s robust framework.

Embarking on the journey of owning a Lennys Sub Shop franchise involves a clear financial commitment, thoughtfully structured to facilitate entry into the brand’s established system. The initial franchise fee for a Lennys Sub Shop franchise is $72,000, representing the upfront cost to gain access to the brand’s intellectual property, operational systems, and ongoing support mechanisms. This fee is a standard component of franchising across various industries, compensating the franchisor for the privilege of utilizing their brand name, trademarks, proprietary recipes, and proven business model. Beyond this initial fee, the total investment required to establish and operate a Lennys Sub Shop franchise ranges from $72,000 to $310,500. This comprehensive investment range accounts for a multitude of expenses that a new franchisee will encounter during the setup phase and initial operational period. Such costs typically include, but are not limited to, real estate acquisition or leasehold improvements, which involve the build-out or renovation of the physical restaurant space to meet the brand’s specific design and functional standards. Equipment purchases constitute another significant portion of the investment, encompassing everything from ovens, refrigerators, and display cases to point-of-sale systems and other essential kitchen and front-of-house apparatus necessary for daily operations. Initial inventory, covering ingredients, packaging, and supplies, also falls within this range, ensuring the franchisee has sufficient stock to commence business and meet early customer demand. Furthermore, the total investment accounts for working capital, which is crucial for covering initial operating expenses such as payroll, utilities, rent, and marketing during the ramp-up phase before the business achieves consistent profitability. The variance in the total investment range is often influenced by factors such as the size and condition of the chosen location, the regional cost of labor and materials, and the specific build-out requirements, allowing for flexibility depending on the franchisee’s chosen site and market conditions. Understanding these financial parameters is fundamental for any prospective investor evaluating the viability and scope of the Lennys Sub Shop franchise opportunity.

The operational model for a Lennys Sub Shop franchise, like many successful Limited-Service Restaurant concepts, is typically designed for efficiency, consistency, and scalability, providing a structured framework for franchisees to deliver a uniform customer experience. This model generally emphasizes streamlined kitchen processes, ensuring rapid order fulfillment while maintaining quality standards essential for customer satisfaction in a fast-paced environment. Standardized procedures for food preparation, ingredient handling, and cleanliness are paramount, ensuring that every Lennys Sub Shop franchise location adheres to the brand’s established guidelines, which in turn fosters consumer trust and brand loyalty. The support structure commonly provided by franchisors in this sector is comprehensive, aiming to guide franchisees through every stage of their business development. This support frequently commences with initial training programs, which are crucial for equipping new owners and their management teams with the necessary knowledge and skills in areas such as operational management, customer service protocols, inventory control, and local marketing strategies. These training sessions often combine classroom instruction with hands-on experience, providing a holistic learning environment. Beyond initial training, ongoing support is a cornerstone of the franchise relationship, typically including regular visits from field consultants who offer guidance on operational challenges, performance optimization, and adherence to brand standards. Marketing assistance is also a key component, with franchisors often providing national or regional advertising campaigns, as well as local marketing toolkits and strategies to help franchisees effectively promote their Lennys Sub Shop franchise within their specific territories. Supply chain management is another critical area of support, where franchisors leverage their purchasing power to negotiate favorable terms with approved suppliers, ensuring franchisees have access to high-quality ingredients and supplies at competitive prices, which is vital for maintaining product consistency and managing cost of goods sold. This integrated system of operational guidance and continuous support is designed to empower franchisees, enabling them to focus on day-to-day management and customer engagement, confident in the backing of an experienced franchisor.

Evaluating the financial performance of any franchise opportunity, including the Lennys Sub Shop franchise, is a critical step for prospective investors, as it provides a tangible understanding of potential earnings and return on investment. In the franchising industry, franchisors are permitted, but not required, to provide financial performance representations (FPRs) in Item 19 of their Franchise Disclosure Document (FDD). When these representations are included, they typically offer crucial insights such as average unit revenue, median revenue figures, gross profit margins, or specific cost breakdowns, enabling potential franchisees to project their own revenue and profitability with greater accuracy. These disclosures, if provided, are based on historical data from existing franchised or company-owned units, offering a realistic snapshot of the financial outcomes experienced by operators within the system. For a Lennys Sub Shop franchise, understanding these metrics would allow an investor to gauge the revenue potential in different market conditions, assess the efficiency of the operational model, and determine the viability of the investment relative to their financial goals. Item 19 disclosures often detail the methodology used to compile these figures, indicating the number of units included in the data, any exclusions, and the average time units have been open. This transparency is invaluable for conducting thorough due diligence, as it helps to clarify the potential earnings range and the factors that might influence financial outcomes, such as location, operational efficiency, and local market dynamics. Prospective franchisees often seek to understand key performance indicators (KPIs) like average transaction size, customer count, and peak operating hours, all of which contribute to the overall financial health of a restaurant business. The presence of comprehensive financial performance representations significantly enhances an investor's ability to make an informed decision, providing a foundation for developing a robust business plan and financial projections for their potential Lennys Sub Shop franchise.

The growth trajectory of the Lennys Sub Shop franchise, currently operating with 15 total units, positions it as a brand in a growth phase, with considerable potential for expansion across new markets and deeper penetration within existing regions. This unit count indicates a foundational presence, suggesting that the brand has established its operational model and proven its market viability, making it an attractive proposition for entrepreneurs looking to join an expanding system. The FPI Score of 28 provides an independent assessment of the franchise's overall health and potential, based on a comprehensive set of criteria that evaluate various aspects of the business and the franchisor-franchisee relationship. While specific interpretations of the FPI score scale vary, a score of 28 suggests a particular standing within the broader landscape of franchise opportunities, offering an objective data point for prospective investors to consider alongside other financial and operational information. Brands in this stage of development often benefit from a more hands-on franchisor approach, providing closer support and guidance to their franchisees as the system matures. Competitive advantages for a brand like Lennys Sub Shop franchise in the Limited-Service Restaurant sector often stem from several key differentiators. These may include a commitment to fresh, high-quality ingredients, which resonates strongly with today’s health-conscious consumers and those prioritizing taste and freshness. A distinctive menu that offers unique flavor profiles or signature sandwiches can also set a brand apart, creating a loyal customer base that seeks out its specific offerings. Efficient and friendly customer service is a non-negotiable competitive advantage in the highly competitive food service industry, where positive interactions can significantly enhance the dining experience and encourage repeat business. Furthermore, a well-defined operational system that ensures consistency across all locations contributes to a strong brand reputation, as customers can expect the same quality product and service whether they visit one Lennys Sub Shop franchise or another. The ability to adapt to changing consumer trends, such as the demand for online ordering, delivery services, or healthier menu options, is also crucial for sustaining long-term growth and maintaining a competitive edge in the evolving market.

The ideal franchisee for a Lennys Sub Shop franchise typically embodies a blend of entrepreneurial spirit, operational acumen, and a strong commitment to customer service, reflecting the core demands of the Limited-Service Restaurant industry. Successful operators often possess prior experience in business management or the food service sector, demonstrating an understanding of daily operational challenges, staff leadership, and inventory control. A genuine passion for the brand and its products is also a significant asset, translating into enthusiastic engagement with customers and a dedication to maintaining high standards of quality. Franchisees should be community-minded individuals, capable of fostering strong local relationships and actively participating in local marketing initiatives to build brand awareness and loyalty within their specific territories. The ability to effectively manage a team, motivate employees, and cultivate a positive work environment is crucial for ensuring consistent service delivery and operational efficiency. Financial stability and the capacity to meet the required initial investment and ongoing operational costs are fundamental prerequisites for any prospective Lennys Sub Shop franchise owner. In terms of territory, the success of a Limited-Service Restaurant like a sub shop heavily relies on strategic site selection, which is often guided by the franchisor’s expertise. Ideal locations typically feature high visibility, easy accessibility, and proximity to target demographics, such as residential areas, business districts, schools, or retail hubs. Factors such as traffic patterns, pedestrian footfall, and the presence of complementary businesses or anchor tenants are carefully considered to maximize customer flow. Understanding local market dynamics, including demographic profiles and competitive landscape analysis, is essential for identifying territories with strong growth potential and minimizing saturation. The franchisor often provides extensive support in territory analysis and site selection, leveraging market research and real estate expertise to help franchisees identify the most promising locations for their Lennys Sub Shop franchise, thereby setting the stage for optimal performance and market penetration.

The Lennys Sub Shop franchise presents a compelling investor opportunity for individuals seeking to enter the thriving Limited-Service Restaurant sector with a brand that has established its operational framework with 15 total units. The investment range, spanning from $72,000 to $310,500, offers a clear financial blueprint, allowing prospective franchisees to plan their capital allocation with precision. This range encompasses all essential elements for launching and sustaining a robust sub shop operation, from the initial franchise fee of $72,000 to comprehensive build-out costs and initial working capital. The FPI Score of 28 provides an independent, data-driven perspective on the brand’s overall health and potential, serving as a valuable benchmark for evaluating the investment. For an entrepreneur with the requisite business acumen, a dedication to operational excellence, and a passion for customer satisfaction, a Lennys Sub Shop franchise offers a pathway to business ownership within a resilient and perpetually in-demand segment of the food service industry. The brand’s existing footprint, though modest compared to industry giants, signifies a proven concept ready for further strategic expansion and market capture. The inherent appeal of freshly prepared, customizable sandwiches ensures a consistent customer base, making the Lennys Sub Shop franchise a relevant and attractive option in diverse communities. As the brand continues its development, there exists a significant opportunity for early investors to grow alongside the system, establishing strong local presences and contributing to the overall brand recognition. The structured support typically provided by franchisors in this segment further mitigates some of the challenges associated with independent business startups, offering a guided approach to ownership. For those considering a venture in the dynamic world of fast-casual dining, the Lennys Sub Shop franchise warrants thorough investigation. Explore the complete Lennys Sub Shop franchise profile on PeerSense to access the full suite of independent franchise intelligence data.

FPI Score

28/100

SBA Default Rate

14.3%

Active Lenders

17

Key Highlights

Data Insights

Key performance metrics for Lenny's Sub Shop based on SBA lending data

SBA Default Rate

14.3%

3 of 21 loans charged off

SBA Loan Volume

21 loans

Across 17 lenders

Lender Diversity

17 lenders

Avg 1.2 loans per lender

Investment Tier

Mid-range investment

$72,000 – $310,500 total

Lenny's Sub Shop — Deep SBA Data

Brand-specific metrics derived directly from SBA 7(a) approval records — peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2015

6 approvals — best year on record for Lenny's Sub Shop.

Top SBA State

Texas

7 SBA-financed Lenny's Sub Shop locations — the densest operator footprint.

Average Loan Size

$193K

Median $229K — use as a sizing anchor when modeling your own $Lenny's Sub Shop unit.

Lender Concentration

37.1%

Moderately Spread

Share of Lenny's Sub Shop approvals captured by the top 3 SBA lenders.

Lenny's Sub Shop's SBA lending pipeline peaked in 2015 (6 approvals). Operator density is highest in Texas with 7 SBA-financed locations. Average funded ticket sits at $193K, with the median at $229K. Lender mix is moderately spread: the top three SBA lenders account for 37.1% of approvals — meaningful choice exists but specific lenders carry the brand.

Payment Estimator

Loan Amount$58K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$745

Principal & Interest only

Locations

Lenny's Sub Shopunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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