Risk Score
Pending analysis
Investment Range
$382,025 - $668,178
Franchise Fee
$20,000
Total US Locations
118
Business Summary
PrimoHoagies operates fast food restaurants that serve various "hoagie" sandwiches, cheesesteaks, salads, side dishes, and soft drinks. PrimoHoagies offers individuals the right to own and operate single or multiple PrimoHoagies restaurants.
Corporate History
PrimoHoagies Franchising, Inc. was initially formed as Primo Franchising, Inc. in June 2002 in New Jersey to offer franchises. The company converted to its current entity, PrimoHoagies Franchising, Inc., a Delaware corporation, on August 25, 2005. PrimoHoagies began offering franchises under its current system in 2006.
Financial Overview
Investment Range
$382,025 - $668,178
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$75,000
Royalty %
6%
Marketing %
4%
Equipment Costs (Low)
$274,000
Equipment Costs (High)
$474,678
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
PrimoHoagies Franchising, Inc. appears to be in a generally healthy financial position. The company's auditors have given an unmodified opinion on its financial statements for 2024 and 2023, indicating no significant financial red flags or concerns about its ability to continue operating. PrimoHoagies has maintained positive working capital, which is the cash available to cover its short-term expenses, with $858,503 in 2024 and $1,186,840 in 2023. The company also reported net income of $413,835 in 2024 and $634,979 in 2023. However, PrimoHoagies' accumulated deficit has significantly increased over the past three years, from $(354,882) in 2022 to $(2,098,525) in 2024. This increase is primarily due to large distributions made to stockholders. Additionally, PrimoHoagies established a $128,889 allowance for credit losses on notes receivable from franchisees and employees in 2024, which could suggest some challenges in collecting these loans. The 2025 FDD, including the 2024 financial statements, was not filed by the statutory due date of April 30, 2025, but the company is in the process of filing it.
Financing Details
PrimoHoagies Franchising, Inc. does not offer any direct or indirect financing to franchisees. This means PrimoHoagies does not provide loans or guarantees for a franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
118
Franchised Units
112
Corporate Units
6
Avg Square Footage
1,650
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
PrimoHoagies has one disclosed concluded litigation case. In 2015, a franchisee, Sarah Scarlata-Nesbitt, filed for arbitration against PrimoHoagies Franchising, Inc., its affiliate Nellie's Provisions, and key personnel. The claims included fraudulent misrepresentation, violations of RICO laws, and violations of the New Jersey Franchise Practices Act, seeking $1,000,000 in damages. PrimoHoagies filed a counterclaim. Most claims against PrimoHoagies were dismissed on summary judgment, except for a claim alleging that another franchisee was allowed to relocate too close to the complainant's protected territory. The arbitrator awarded the complainant $54,400 plus costs and a portion of legal fees, totaling $134,472. The parties settled confidentially in December 2016.
Bankruptcy History
PrimoHoagies Franchising, Inc. has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew with PrimoHoagies, franchisees must provide timely notice, renovate their restaurant to meet current system standards before the renewal date, and ensure they are not in default or have a history of defaults. Franchisees must also have satisfied all financial obligations, have the right to possess their business location, sign the then-current franchise agreement (which may have different terms), sign a general release, complete all required training, and pay a $6,500 renewal fee. Additionally, franchisees must be current on all obligations to their landlord, suppliers, and other business partners.
Training & Support Program
Franchisor Assistance
PrimoHoagies Franchising, Inc. offers a variety of assistance to its franchisees. Before opening, this may include site selection guidelines and evaluations, standard architectural plans, initial training, a copy of the operating manual, a list of initial equipment, and opening assistance around the grand opening. After opening, PrimoHoagies may provide ongoing support through inspections of the restaurant, continued opening assistance, and advice and written materials on new recipes, products, operational techniques, and pricing strategies. PrimoHoagies also administers the brand fund and designates approved suppliers for food items, ingredients, and equipment.
Initial Training Hours
187
Training Location
PrimoHoagies' initial training is held virtually, at a designated PrimoHoagies training restaurant, at POS headquarters, at a bakery, or on-site at the franchisee's business.
Ongoing Support
After a PrimoHoagies restaurant opens, PrimoHoagies Franchising, Inc. may provide ongoing support through periodic inspections of the business, continued opening assistance if needed, and ongoing advice and written materials on new recipes, products, and operational techniques for cooking, cleaning, and food storage. This advice may also include strategies for pricing, coupons, and promotions. Additionally, PrimoHoagies administers the Brand Fund for advertising and designates or approves suppliers for various products and equipment.
Franchise Requirements
Ideal Candidate Profile
PrimoHoagies Franchising, Inc. seeks qualified individuals and entities who meet its educational, managerial, and business standards. Ideal candidates should possess good moral character, a strong business reputation, and a solid credit rating, along with the aptitude and ability to operate a PrimoHoagies restaurant. Franchisees must also have adequate financial resources and capital for the business, should not have operated a competing business, and must demonstrate communication skills deemed necessary for success by PrimoHoagies.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
PrimoHoagies Franchising, Inc. defines its territories based on mutual agreement with the franchisee, considering factors such as demographics, population density, area income statistics, traffic patterns, area marketing statistics, and competition. Franchisees can choose from available territories. The size of the territory may vary; for instance, densely populated areas will have smaller territories, while more remote locations may have larger ones. In some cases, the territory may be limited to just the approved location. There is no guaranteed minimum territory size.
Staffing Notes
PrimoHoagies Franchising, Inc. requires that the restaurant always be under the direct, on-premises supervision of the franchisee, a principal, or another approved individual who has completed the required training. If a franchisee operates only one PrimoHoagies restaurant, they must personally manage it on-premises and cannot hire a manager for this role. Franchisees must also maintain a competent, trained staff and ensure that at least one employee with ServSafe® or comparable food safety certification is present during all business hours.