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Penn Station East Coast Subs

2014 Franchise 500
#153
At a Glance

Products & Services: Grilled subs

Number of Locations: 279

Total Investment: $258.1K - $519.7K

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
2014 278 0 0 1
2013 260 0 0 1
2012 241 0 0 2
2011 224 0 0 2
2010 213 0 0 2
Where Seeking Franchisees: Franchisor is seeking new franchise units in the following states:
Midwest, Northeast, South, Southeast.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $258,103 - $519,704
Franchise Fee: $25,000
Ongoing Royalty Fee: 4-8%
Term of Franchise Agreement: 5 years, renewable
Financial Requirements
Net Worth: $300,000
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).
Direct Capital
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®: #153 (2014), #136 (2013), #148 (2012), #141 (2011), #183 (2010),