Peppo's franchise
2023 filing · June 1, 2023Shares sales figures
Peppo's at a glance
A restaurant serving submarine sandwiches. At the end of 2022 there were 1 Peppo's locations in the US, all company-owned.
The business
- Franchisor
- Peppo's Franchise Group, LLC
- The company that sells the franchises
- Franchising since
- 2023
- Franchisor based in
- Palos Hills, Illinois
- Typical size
- 1,000–2,000 sq ft
What you pay
- Cost to open
- $225K–$327K
- Fee, build-out and opening working capital
- Franchise fee
- $25,000
- Paid once, when you sign
- Royalty
- 6%
- 6% of gross sales, paid weekly, plus 1% to the brand fund
- Brand fund
- 1%
- 1% of gross sales, paid weekly; it can rise to 4%
- Agreement length
- 10 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 1
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 1
- Change in 3 years
- 0
- Franchised locations, 2020–2022
- States
- 1
- Most in Illinois
From Peppo's Franchise Group, LLC’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Peppo's among all franchises with the same figure.
| Figure | Peppo's | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $276,250 | Costs less than 59% of franchises |
| Franchise feePaid once, when you sign | $25,000 | Lower than 82% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 1 | Fewer than 88% of franchises |
How much a Peppo's franchise costs
Opening one Peppo's costs an estimated $225,400 to $327,100. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are equipment ($60,000 to $75,000) and leasehold improvements ($30,000 to $52,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $25,000 | ||
| Travel and Living Expenses During Training | $9,000 | $13,000 | |
| Initial Inventory | $8,000 | $10,000 | |
| Security Deposit | $4,000 | $16,000 | |
| Rent (Initial 3 months) | $6,000 | $24,000 | |
| Real Estate Broker Fee | $0 | $3,000 | |
| Utility Deposits | $2,000 | ||
| Leasehold Improvements | $30,000 | $52,000 | |
| POS System | $1,000 | $1,500 | |
| Computer Hardware and Software | $6,500 | $7,000 | |
| Equipment | $60,000 | $75,000 | |
| Furniture, Fixtures & Decor | $8,000 | $12,000 | |
| Small Wares | $4,500 | $6,000 | |
| Signage | $6,000 | $10,000 | |
| Business Licenses & Permits | $300 | $500 | |
| Office Equipment & Supplies | $1,500 | $2,000 | |
| Architect Fees | $5,000 | $8,000 | |
| Professional Fees | $3,000 | $5,000 | |
| Business Insurance | $2,000 | $3,000 | |
| Grand Opening Advertising | $2,100 | ||
| Initial Marketing Materials | $1,500 | $3,000 | |
| Employee Wages During Training | $5,000 | $7,000 | |
| Miscellaneous | $5,000 | $10,000 | |
| Additional Funds for First 3 Months | $30,000 | ||
| Total | $225,400 | $327,100 | |
Source: Peppo's Franchise Group, LLC, 2023 filing, page 14
Peppo's franchise fee
The franchise fee is $25,000. You pay it when you sign the franchise agreement.
Source: Peppo's Franchise Group, LLC, 2023 filing, page 7
Royalty and ongoing fees
| Royalty | 6% of gross sales, paid weekly, plus 1% to the brand fund. |
|---|---|
| Brand or marketing fund | 1% of gross sales, paid weekly; it can rise to 4%. |
| Technology Fee | $150 per month, currently. |
| Local Advertising and Promotions | At least 1% of Gross Sales. Currently 1% of Gross Sales. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Peppo's Franchise Group, LLC, 2023 filing, page 8
Other fees as filed, from page 8. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Peppo's publishes sales or earnings figures for its locations: Shows the yearly sales of the company-owned store. The full tables, with notes on which locations are counted, are in its filing.
Source: Peppo's Franchise Group, LLC, 2023 filing, page 32
- Estimate Estimated yearly sales per location
- $460K–$810K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Peppo's compares
Of the 80 sandwich franchises on this site, Peppo's is the 20th cheapest to open and the 69th largest by number of locations.
| Figure | Peppo's | Typical sandwich brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $225K | $321K | $222K |
| Cost to open, high end | $327K | $683K | $477K |
| Franchise fee | $25K | $32K | $40K |
| Royalty | 6% | 6% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 1 | 31 | 21 |
| Shares earnings figures | Yes | 50 of 80 | 2,147 of 3,352 |
Typical is the median across the 80 brands in sandwich franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 0 (0) | 1 | 0 | 0 |
| 2021 | 0 (0) | 1 | 0 | 0 |
| 2022 | 0 (0) | 1 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: sandwich and sub franchise costs and franchise failure rates.
Source: Peppo's Franchise Group, LLC, 2023 filing, page 33
Where Peppo's locations are
At the end of 2022, Peppo's had locations in 1 state. The most are in Illinois.
- Illinois1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Illinois | 0 | 1 | 1 |
Source: Peppo's Franchise Group, LLC, 2023 filing, page 34
Who owns Peppo's?
Peppo's franchises are sold by Peppo's Franchise Group, LLC.
From Peppo's Franchise Group, LLC’s 2023 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Peppo's Franchise Group, LLC, 2023 filing, litigation on page 7, bankruptcy on page 7
Peppo's filings
The figures on this page come from Peppo's Franchise Group, LLC’s 2023 filing, issued June 1, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | June 1, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other sandwich franchises
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Peppo's is also on these lists: restaurant franchises, food franchises.