Penn Station East Coast Subs

#136

At a Glance

Products & Services: Specialty sandwiches

Number of Locations: 256

Total Investment: $320.8K - 460.81K

Founded: 1985

Began Franchising: 1987

About Penn Station East Coast Subs

Jeff Osterfeld opened his first quick-service restaurant, Jeffrey's Delicatessen, in Dayton, Ohio, in 1983. A visit to the east coast inspired him to add Philly cheesesteaks to his menu. Then in 1985, he made cheesesteaks the star of the menu in his second restaurant, the first Penn Station, in Cincinnati. Franchising of the concept began two years later.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2013	255	0	0	1
2012	241	0	0	2
2011	224	0	0	2
2010	213	0	0	2
2009	205	0	0	2

Where Seeking Franchisees: Franchisor is seeking new franchise units in the following states:
Midwest, Northeast, South, Southeast.

Startup Costs, Ongoing Fees and Financing

Total Investment: $320,798 - $460,813
Franchise Fee: $25,000
Ongoing Royalty Fee: 4-8%
Term of Franchise Agreement: 5 years, renewable

Financial Requirements

Liquid Cash Available: $150,000 - $500,000

Operations

85% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 15. Absentee ownership of franchise is allowed. (15% of current franchisees are owner/operators).

Financing Type	In-House	Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 3 weeks. At franchisee's location: 1 week.

Ongoing Support: Newsletter, Meetings, Grand opening, Internet, Field operations/evaluations, Lease Negotiation

Marketing Support: Ad slicks, National media, Regional advertising,

Franchise Ranking History

Franchise 500®: #136 (2013), #148 (2012), #141 (2011), #183 (2010), #206 (2009),

Click to Print