Rank no. 227 – Lenny’s Sub Shop – US

Products & Services: Philly cheesesteaks, subs & salads

Number of Locations: 136

Total Investment: $122.83K – 350.2K

Founded: 1998

Began Franchising: 2001
About Lenny’s Sub Shop
Len Moore started out as a busboy and worked his way up to general manager of a restaurant by the age of 18. He continued to work in food service management throughout his life and was one of the earliest Chick-Fil-A franchisees. In 1998, he and his wife Shelia decided to open their own restaurant, a sandwich shop, in Bartlett, Tennessee. Though they only planned for a single unit, the popularity of Lenny’s Sub Shop led them to franchise in 2001. After selling the company in 2004, Moore still stayed involved in the business– this time as Lenny’s Sub Shop franchisee.

Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S.
Startup Costs, Ongoing Fees and Financing
Total Investment: $122,825 – $350,200
Franchise Fee: $20,000 – $25,000
Ongoing Royalty Fee: 6%
Term of Franchise Agreement: 10 years, renewable
Financial Requirements
Net Worth: $100,000 – $400,000
Liquid Cash Available: $40,000 – $100,000
Operations
61% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 10 – 15. Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators).
How This Franchise Supports Franchisees
Training: Available at headquarters: 5 weeks. At franchisee’s location: 10 days.
Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Lease Negotiation
Marketing Support: Ad slicks, Regional advertising,
Franchise Ranking History
Franchise 500®: #227 (2013), #453 (2011), #225 (2010), #183 (2009),
Fastest-Growing: #86 (2009),
ABOUT LENNY’S SUB SHOPS
History
The creation of a truly great sub is no small feat. At Lenny’s we pride ourselves on serving up Authentic Philly Cheesesteaks & the Deli Fresh Experience™. Since the beginning, Lenny’s commitment to quality and attention to detail has gone into every restaurant and every sub sandwich.

The first Lenny’s Sub Shop® opened in 1998 in a suburb of Memphis, TN to satisfy cravings for authentic subs and Philly Cheesesteaks. Though Lenny’s Sub Shop® was originally planned as a single unit restaurant, the tremendous reception from guests at the first location prompted rapid growth and the concept soon became franchised. Lenny’s, now owned by Lenny’s Franchise Systems, LLC, continues to expand across the country.

Lenny’s is the only place to find Authentic Philly Cheesesteaks & The Deli Fresh Experience™. We slice our meats and cheeses fresh to order and pile them high on fresh baked bread. With about a half pound of meat and cheese on the regular size sub, and about a full pound on the large size sub, Lenny’s provides an unmatched value for our guests’ hard earned dollars. Our Philly Cheesesteak is cooked fresh to order and is served hot off the grill.

Lenny’s commitment to its guests is clear – More Food, More Taste, More Personality®. Our commitment means that substantial portions, quality produce and great customer service can be found in every Lenny’s Sub Shop®.

WHY LENNY’S
Top 10 Reasons Everybody Loves Lenny’s!

Why Lenny’s
Guests love Lenny’s! And our tagline says it all – More Food. More Taste. More Personality!

The Lenny’s concept is simple – take a wholesome environment and add employees with great personalities. Combine this and our fantastic food with the subtle touches we’ve added to ensure better guest experiences (larger tables, bigger booths, no trashcans and hand-delivered beverage refills), and you’ll see the Lenny’s Magic. We’ve created an improved dining experience that distinguishes us in the sub-sandwich industry and promotes brand loyalty.

Training & Support
Lenny’s believes in nothing less than the best when it comes to training and supporting franchisees. A minimum of five weeks of in-depth training is provided to new franchisees. Classroom training is completed at Lenny’s corporate office in Memphis, TN and restaurant skills training is completed at a Lenny’s designated training restaurant.

Additionally, Lenny’s Sub Shop franchisees are provided with:
Access to the L.E.A.R.N. program (Lenny’s Education And Resource Network) – an all-inclusive web-based learning tool accessible to franchisees and employees from the restaurant or at home.
The Restaurant Manager Certification Program.
Online marketing seminars.
A Point of Sale System that provides additional support tools as well as business intelligence.
Complete guides to the Lenny’s Sub Shop brand standards and operation.

Once a new Lenny’s franchise restaurant is ready to open, the grand opening team, consisting of both operations and marketing advisors, will arrive at the restaurant. The team will stay for 5-7 days to support the new franchisee throughout the pre-opening activities and will ensure that everything is in place for a successful opening day. Operations and marketing advisors will visit each restaurant from time to time to not only ensure brand standards, but to be sure the franchisee has all the tools they need to be successful.
Lenny’s Sub Shop started in Memphis, TN in 1998. Our goal has been to expand outward from the city of Memphis in order to grow the business strategically. Currently, our largest presence is in the southeast region of the United States. We are working to open franchises in the undeveloped cities in this region as well as to expand throughout the country.

Lenny’s Sub Shop franchisees are provided with:
World-class training and support.
Support systems featuring real estate, marketing, purchasing, distribution, operations support, point of sale technology and training services.
Tools to focus on delivering a flawless dining experience, increasing revenue, driving down costs and maximizing bottom line results.

Available Markets
Lenny’s is seeking well-capitalized, experienced business professionals to join our franchise team. In addition to single unit franchises, Lenny’s is also offering opportunities for multi-unit development. Each of Lenny’s franchised units has a protected radius of one mile.

Lenny’s is licensed in and expanding in all of the United States. We encourage you to Contact Us to learn more about our market availability.
Costs & Criteria
The initial franchise fee to open a Lenny’s Sub Shop franchise in the United States is $25,000. The average total initial investment is $253,750, which includes the initial franchise fee of $25,000. A $5,000 discount is offered to Veterans and minorities.

Additionally, we seek:
Prospective franchisees with a net worth of at least $400,000
Prospective franchisees with liquid assets of at least $40,000

More detailed Cost and Criteria information is available in the Lenny’s Sub Shop E-Tour, as well as in the Franchise Disclosure Document (FDD).

Source: Lenny’s Sub Shop official website