Start a Penn Station East Coast Subs Franchise in 2024

2024 Franchise 500 Rank: N/R Ranked #374 last year

Initial investment: $508K - $859K

Units as of 2024: 319 1.9% over 3 years

Penn Station East Coast Subs was founded by Jeff Osterfeld, a former co-operator of a deli in Dayton, Ohio. In 1985, Osterfeld used his expertise to bring his ideas to life by opening his first restaurant in Cincinnati, Ohio. He introduced the concept of preparing meals directly in front of the customers using only fresh ingredients. Penn Station East Coast Subs franchises are known for their cheesesteaks and sandwiches.

Osterfeld's concept of combining up-scale, quick-service dining experience with fresh ingredients and signature display cooking was converted into a franchise concept in 1987. The average Penn Station East Coast Subs restaurant typically serves a signature menu of grilled and cold deli sandwiches made with high-quality ingredients on freshly baked bread. The restaurant menu also includes fresh-cut fries, hand-squeezed lemonade, and chocolate chunk cookies, all freshly made in front of the customers.

Why You May Want to Start a Penn Station East Coast Subs

Penn Station East Coast Subs has been ranked in Entrepreneur’s Franchise 500 many times in the past several decades. This ranking is based on an evaluation of more than 150 data points, including costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.

There are more than 300 Penn Station East Coast Subs locations throughout the United States. Penn Station East Coast Subs seeks to expand to new locations with experienced multi-unit franchisees. The unique food menu it provides may prove to be attractive for the franchisee with operational simplicity and unit-level economics.

What Might Make a Penn Station East Coast Subs a Good Choice?

As a franchisee, you're part of a network covering locations including Ohio, Illinois, Indiana, Georgia, Kansas, and more. As you decide if opening a Penn Station East Coast Subs franchise is for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Penn Station East Coast Subs franchise would do well in your community.

How to Open a Penn Station East Coast Subs Franchise

To be considered as a potential franchise operator, you typically need to have the following qualifications:

Some experience with running a business (preferably a franchise)
Some personnel management experience
A sound business strategy that aligns with Penn Station's goals and objectives
Meet the financial requirements

If you meet the criteria above, you can generally get started by filling out an online inquiry form. If you are seen as a good fit, an agent from the franchise might contact you for a pre-qualification interview. If the agent is satisfied, Penn Station East Coast Subs may provide you with a proper franchise application that they expect to be completed within a stipulated time.

Next, you'll generally need to attend an online exploration seminar, and you'll be introduced to other franchisees. You'll typically then be invited to a meeting at Penn Station East Coast Subs headquarters in Milford, Ohio. Finally, you may be able to sign the franchise agreement that will allow you to open the doors to your tasty franchise.

Company Overview

About Penn Station East Coast Subs

Industry	Food
Related Categories	Philly Cheesesteak Sandwiches, Sandwiches
Founded	1985
Leadership	Jeffrey Osterfeld, CEO
Corporate Address	1226 U.S. Hwy. 50 Milford, OH 45150
Social	Facebook, Twitter, LinkedIn, Instagram, TikTok

Business Overview

Franchising Since	1987 (37 years)
# of employees at HQ	36
Where seeking	This company is offering new franchises in the following US states: Arkansas, Georgia, Iowa, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, North Carolina, Nebraska, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia
# of Units	319 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Penn Station East Coast Subs franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$25,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$507,500 - $858,750
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$300,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	to 8%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%-4%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	5 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Penn Station East Coast Subs has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	202-209 hours
Classroom Training	25-33 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	15
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes