Jimmy John’s Franchise vs. Penn Station Subs Franchise: How they Compare

Jimmy John’s Franchise vs. Penn Station Sub Franchise

You’re interested in opening a sub franchise, but want to ensure it’s one that will position you with the best opportunity for success, fit your lifestyle, and create a legacy for your family. Two viable sub sandwich franchise options you’ll notice when researching are Penn Station East Coast Subs and Jimmy John’s. Both are well known sub franchises, but which one is the best option for you? Below, is a breakdown comparing costs, support, and more as reflected in each brand’s Franchise Disclosure Document (FDD) Item 19 to help you decide.

To start, here is an overview of facts and figures to give you a general idea about each brand.

Jimmy John’s Franchise

Originally founded in 1983, Jimmy John’s began franchising in 1993. Now, part of the Inspire Brands group of restaurants, the brand how has more than 2,700 locations across the country. Known for using natural vegetables and meats in their sandwiches and freshly baked bread, the brand strives to make delicious sandwiches for loyal Jimmy John’s customers.

Investment costs to open a Jimmy John’s range between $355,900 and $671,400, which includes their $35,000 franchise fee. Franchise candidates interested in owning a Jimmy John’s should have a net worth of $1 million and at least $200,000 in liquid assets. Franchisees can expect to pay a 6% royalty fee and a 4.5% ad royalty fee for the life of their agreement.

Franchise agreements with Jimmy John’s span 10 years and are renewable at the end of their term. The brand does also offer their franchisees exclusive territories.

 

Penn Station Subs Franchise

Another sub sandwich franchise opportunity is Penn Station East Coast Subs. Founded in 1985, the brand has been franchising since 1987. Having originally started in Dayton, Ohio, the brand now has 317 locations across the U.S. Penn Station Subs uses only high quality, fresh ingredients in their grilled and cold deli sandwiches, they also offer fresh-cut fries, hand-squeezed lemonade, and chocolate chunk cookies – all made fresh daily. We also offer wraps and salads; Jimmy John’s offers only cold subs.

Initial investment costs to start a Penn Station Subs franchise range between $365,361 and $696,030, including their $25,000 franchise fee. While their initial investment costs may be slightly higher than a Jimmy John’s franchise, Penn Station Sub franchise candidates are only required to have a net worth of $500,000 and $300,000 in liquid capital.  As part of their ongoing sandwich franchise costs, franchisees have a sliding scale royalty structure, from 2.0% to 8.0%, depending on your sales volumes.  The National Advertising Fee is also lower at 2.0%-3.0%. In addition, we offer exclusive franchise development territories.

It’s important to note that a  franchise chain with thousands of units does not always mean a better opportunity. Penn Station prides itself on a simple operating platform, craveable product offerings,  ongoing support, and the overall growth opportunity the brand provides to franchisees. With our size – we currently have over 300 locations, with many more in development – we are able to offer franchise candidates much more prime territory availability.

Franchising with Penn Station Subs

Founder of Penn Station East Coast Subs Jeff Osterfeld created an award-winning sandwich chain with the deli he opened right after college in 1985 and he remains actively involved in the business to this day. Unlike many other franchises, Penn Station Subs is privately-owned, which allows the brand the agility to implement a strategic, long-term view to all facets of the business.

A Penn Station franchise may be right for those passionate about providing a delicious, high-quality product and are committed to operational excellence and unmatched customer service. With many attractive development territories available for multi-unit growth, there has never been a better time to become a Penn Station franchisee. If you’re ready to learn more about the Penn Station brand and franchise opportunities, request more info, and one of our representatives will be in touch.