Lenny's Sub Shops

Lenny's Grill and Subs, the brand's current operating name, began on September 16, 1998, when Len and Shelia Moore opened the first location at 7424 Stage Road in Bartlett, Tennessee, a suburb of Memphis. The concept focuses on made to order submarine sandwiches, especially authentic Philly cheesesteaks, with fresh ingredients and fast casual service. Its headquarters in Memphis, Tennessee reflect its Southern roots. Lenny's Holdings, LLC is the parent company, and GOSH Enterprises acquired the brand in 2019. Current leadership includes Charley Shin, Chief Executive Officer, Elias Moaikel, President, Candra Alisiswanto, COO, and Jennifer Benjamin, Vice President of Franchise and Market Development. This review uses Franchise Disclosure Document information, public financial disclosures, and industry benchmarks to assess the franchise opportunity.

Lenny's operates in the U.S. fast casual dining market, which includes made to order sandwich and sub concepts and generates tens of billions in annual consumer spending. Sandwiches and subs benefit from accessible pricing and broad demographic appeal. Demand for customizable, freshly prepared meals has accelerated since 2020, while higher grocery prices since 2021 have narrowed the perceived value difference between cooking at home and eating out for some households. Lenny's Philly cheesesteak and premium sub niche also offers products that are difficult to duplicate fully at home or in grocery stores. Lenny's competes with national chains that have thousands of units and with regional specialists through product authenticity, differentiation, and community recognition.

Lenny's franchise costs vary by FDD vintage, ownership structure, and real estate format. Disclosed franchise fees range from $15,000 to $25,000, with the 2022 FDD reporting a $20,000 fee. Veterans receive 20% off the franchise fee. The 2022 FDD gives a total investment range of $339,756 to $508,493, compared with a sub sector average minimum investment of $419,677. Other periods show ranges from $141,000 to $455,594. Database information for the current profile, using the lennysgrinders.com digital identity, reports $55,300 to $300,630, likely reflecting specific non traditional or conversion formats. Reported liquid capital requirements range from $70,000 to $175,000. Net worth requirements include $400,000 and a historical $250,000 minimum from 2008. Third party financing is available to qualified candidates, and SBA loan eligibility is relevant when evaluating capital options.

Daily operations rely on made to order service, fresh ingredients, and quality control, making active franchisee involvement or a well trained management team valuable. Training totals 202 hours. Corporate provides up to 7 days of pre opening support from operations and marketing advisors. Each franchisee receives a franchise business consultant, and advisors make periodic restaurant visits. The system has also used non traditional formats, including airports. Territory and exclusivity terms appear in the franchise agreement. Both single unit and multi unit development are available, and qualified franchisees receive a reduced franchise fee for later locations.

Other FDD versions do provide data. Applying the 6% royalty and 2% Brand Marketing Fund contribution to $830,802 produces an estimated combined annual fee obligation of approximately $66,464.

Lenny's began franchising in 2001, three years after its founding, and reached approximately 115 franchise units around September 2016. The system later contracted to the 56 to 60 franchised unit range reported in the 2022 FDD amid ownership changes. In 2023, Lenny's expanded into Atlanta and Columbus, Ohio. A location announced in July 2025 for Porter, Texas, indicates continued expansion in the Greater Houston metropolitan area. Earlier plans called for 25 new locations in 2017 and 200 total restaurants by 2023, with an initial focus on Florida, Tennessee, Texas, Georgia, Mississippi, Alabama, and North Carolina. The brand's 27 year operating history supports its Philly cheesesteak positioning. Its concentration in the Southeast and Mid South provides established recognition, marketing density, and franchisee networks, while Texas and Columbus test the concept in newer markets.

The intended franchisee profile includes experienced food operators, multi unit owners, and first time entrepreneurs. The made to order model favors people who can maintain service speed while protecting fresh ingredient standards. Prior restaurant experience may shorten the learning curve, although the 202 hour program, including 162 hours of hands on training, is designed for motivated candidates without that background. Brand communications describe an investment range of $332,030 to $455,594 as suitable for all three candidate groups. Multi unit development is permitted and encouraged, with a reduced fee for later units. New development prioritizes the Southeastern and South Central U.S., including Florida, Tennessee, Texas, Georgia, Mississippi, Alabama, and North Carolina. Greater Houston, Atlanta, and Columbus, Ohio, were active development markets from 2023 to 2025. Arkansas and Tennessee show the brand's strongest existing concentration and provide a reference for regional density. Agreement terms and renewal provisions should be reviewed with qualified franchise legal counsel.

The 2022 FDD investment range is $339,756 to $508,493, and the documented franchise fee is $20,000, with a veteran discount program. PeerSense assigns the brand a current Loan Activity Score of 21, classified as Limited, reflecting its present scale and the data available in the profile. PeerSense provides independent due diligence information, including SBA lending history, Loan Activity Score, location maps with Google ratings, FDD financial data, and comparison tools. Prospective buyers should obtain the current FDD from the franchisor, have a franchise attorney review the agreement, and build a financial model using disclosed revenue figures and locally researched costs.