Penn Station East Coast Subs franchise
Penn Station East Coast Subs is a fast-casual sub shop serving grilled cheesesteaks and subs, hand-cut fries and fresh-squeezed lemonade. It is mostly found in the Midwest and South. At the end of 2025 there were 322 Penn Station East Coast Subs locations in the US, 321 franchised and 1 company-owned.
- Cost to open
- $441K–$820K
- Franchise fee
- $25,000
- Royalty
- 2–8%
- Locations, 2025
- 322+3 in 3 yrs
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Company snapshot
- Franchising since
- 1987
- First location
- 1985
- Franchisor based in
- Milford, Ohio
- Agreement length
- 10 years
- Financing
- Introductions to lenders
From Penn Station, Inc’s 2026 filing.
How much a Penn Station East Coast Subs franchise costs
Opening a single Penn Station restaurant costs an estimated $440,600 to $819,700. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Penn Station, Inc, 2026 filing, page 24
Penn Station East Coast Subs franchise fee
The franchise fee is $25,000, per restaurant ($12,500 under the multi-store incentive program). You pay it when you sign the franchise agreement.
Source: Penn Station, Inc, 2026 filing, page 12
Royalty and ongoing fees
| Royalty | A sliding royalty set by each month's net sales: 2% under $30,000, rising one point per $5,000 band up to 8% at the top band, paid monthly. |
|---|---|
| Brand or marketing fund | 2% of gross sales |
Source: Penn Station, Inc, 2026 filing, page 15
Sales and earnings
Shares figures Penn Station East Coast Subs publishes sales or earnings figures for its locations: it gives 2025 averages and medians of net sales, costs and EBITDA for 318 restaurants open the full year. The full tables, with notes on which locations are counted, are in its filing.
Source: Penn Station, Inc, 2026 filing, page 69
Locations opened and closed
| Year | Franchised | Company-owned | Closed |
|---|---|---|---|
| 2023 | 322 (+4) | 1 | 5 |
| 2024 | 321 (−1) | 1 | 7 |
| 2025 | 321 (0) | 1 | 4 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
Source: Penn Station, Inc, 2026 filing, page 80
How Penn Station East Coast Subs compares
Of the 46 fast food franchises on this site, Penn Station East Coast Subs is the 16th cheapest to open and the 40th largest by number of locations.
| Measure | Penn Station East Coast Subs | Typical fast food |
|---|---|---|
| Cost to open, low end | $441K | $701K |
| Closed or left per year | 1.7% | 2% |
| Change in franchised locations, 3 yrs | +0.9% | +6.3% |
| Shares earnings figures | Yes | 39 of 46 |
Typical is the median across the 46 brands in fast food franchises.
Other fast food franchises
Penn Station East Coast Subs franchise questions
Does Penn Station East Coast Subs help with financing?
Not directly. Penn Station East Coast Subs points buyers to outside lenders it works with, but the loan is between you and the lender.
How long is a Penn Station East Coast Subs franchise agreement?
The initial term is 10 years. Renewal is usually possible if you're in good standing, often for a fee and a remodel.
Is Penn Station East Coast Subs growing or shrinking?
Over the last 3 years 19 franchised locations opened and 16 closed or left, a net change of +0.9%. About 1.7% of locations closed or left each year. That is in line with the 2% typical for fast food franchises.
How does Penn Station East Coast Subs compare with other fast food franchises?
Of the 46 fast food franchises here, Penn Station East Coast Subs is the 16th cheapest to open (low end $441K against a $701K median) and the 40th largest by number of locations.
Does Penn Station East Coast Subs say how much franchisees make?
Yes: it gives 2025 averages and medians of net sales, costs and EBITDA for 318 restaurants open the full year. Your results can differ; the filing explains which locations are counted.
Where is Penn Station East Coast Subs based?
Penn Station, Inc is based in Milford, Ohio and the brand has sold franchises since 1987; the first location opened in 1985.