About Lee's Sandwiches Franchise
Lee's Sandwiches is a Vietnamese-American quick-service restaurant franchise specializing in freshly baked baguettes, croissants, Asian and European sub-style sandwiches, specialty coffee, smoothies, ice cream, and Delimanjoo cakes.
Franchisees operate one of four unit types: a Baguette Factory Production Unit (5,000-10,000 sq ft) that produces dough for baguettes and supplies other locations; a Production Unit (2,500-5,000 sq ft) offering the full menu with baguette production; a Non-Production Unit (1,000-3,000 sq ft) in strip malls offering the full menu without production; or a Mall Unit (500-2,000 sq ft) designed for food court settings.
Franchisees target the general public and compete with other franchised operations, national chains, and independent restaurants offering similar products.
Lee's Sandwiches Franchise Cost & Fees
Minimum Investment
$197K
Average Investment
$1.0M
Maximum Investment
$1.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 - $75,000 | One-time payment upon signing |
| Royalty Fee | 6.9% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently none; if marketing fund established, 2% of Gross Sales. Franchisees must spend 2% of monthly gross sales on local advertising. | National brand fund |
| Total Investment Range | $196,830 – $1,839,500 | Includes build-out, inventory, working capital |
The investment range of $197K–$1.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.9% of Gross Sales) and marketing fee (Currently none; if marketing fund established, 2% of Gross Sales. Franchisees must spend 2% of monthly gross sales on local advertising.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $35,000 | $75,000 |
| Real Estate/Rent | $1,000 | $36,000 |
| Utility Deposits | $500 | $5,000 |
| Leasehold Improvements | $50,000 | $800,000 |
| Furniture, Fixtures & Equipment | $50,000 | $550,000 |
| Initial Inventory | $5,000 | $40,000 |
| Insurance | $2,000 | $10,000 |
| Signage | $5,000 | $30,000 |
| Vehicles (optional, Baguette Factory only) | $0 | $60,000 |
| Office Equipment & Supplies | $2,500 | $6,000 |
| POS Support | $2,500 | $2,500 |
| Grand Opening | $1,000 | $30,000 |
| Training | $5,000 | $30,000 |
| Licenses & Permits | $330 | $1,000 |
| Legal & Accounting | $2,000 | $4,000 |
| Office Network & Registers | $12,000 | $35,000 |
| Store Surveillance System | $2,000 | $5,000 |
| Additional Funds (3 months) | $20,000 | $120,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 for Baguette Factory Production Unit and Production Unit; $10,000 for Non-Production Unit and Mall Unit; $5,000 under Development Agreement |
| Renewal Fee | No renewal fee required |
| Technology Fee | $2,500 per year for POS support services |
| Audit Fee | All costs and expenses associated with audit, payable only if audit shows underreporting by 3% or more or failure to spend 2% on local advertising |
| Late Fees | 1.5% per month or highest rate allowed by state law, whichever is less |
| Approval of Products or Suppliers | $500 - $1,000 |
| Insurance Policies | $5,000 - $10,000 if franchisor obtains coverage due to franchisee failure |
| Substitute/New Owner Training | $500 per day plus expenses |
| Additional Operations Assistance | $500 per day plus expenses |
| Ongoing Purchases of Lees Sandwiches Products | Varies, as invoiced |
| Customer Service | All costs incurred |
| Cost of Enforcement | All actual costs including reasonable attorneys' fees |
| Indemnification and Defense | All costs including reasonable attorneys' fees |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 4 weeks before opening, plus approximately 1 week of on-site opening assistance |
| Classroom Training | 146 hours (Baguette Factory/Production Unit); 145 hours (Non-Production/Mall Unit) |
| On-the-Job Training | 182 hours (Baguette Factory/Production Unit); 158 hours (Non-Production/Mall Unit) |
| Training Location | Garden Grove, California (affiliate's location) or another designated location |
| Additional Training | Periodic mandatory refresher-training programs at no charge; optional ongoing training programs may have fees. Franchisor may deliver initial training on-site at franchisee's store location. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (non-exclusive) |
| Exclusive Territory | No |
| Territory Size | Varies based on population, median population age, proximity to competitors, proximity to other franchisees, and natural/physical/political boundaries. Mall Units may be limited to the building in which the unit is located. |
| Description | Franchisor will not establish other Baguette Factory Production Units, Production Units or Non-Production Units in the protected territory. However, franchisor may establish Mall Units, captive venue locations, and mobile/temporary businesses inside the protected territory. Franchisor and affiliates retain rights to sell products through alternate channels of distribution including grocery stores, internet sales, and direct mail within the protected territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years for Baguette Factory Production Unit or Production Unit; 5 years for Non-Production Unit or Mall Unit |
| Renewal Term | 3 additional successive terms of 5 years each |
| Renewal Fee | No renewal franchise fee required |
| Renewal Conditions | Must have fully complied with franchise agreement; have right to maintain possession of approved location; made necessary capital expenditures for System uniformity; satisfied all monetary obligations; not in default; given written notice 9-12 months prior to expiration; sign then-current franchise agreement (may have materially different terms); comply with current training requirements; sign then-current general release. |
| Transfer Fee | $15,000 for Baguette Factory Production Unit or Production Unit; $10,000 for Non-Production Unit or Mall Unit; $5,000 under Development Agreement |
| Transfer Conditions | Franchisor must not exercise right of first refusal; all obligations paid; general release signed by transferor and transferee; transferee meets business/financial standards; transferee signs then-current franchise agreement or assumes existing agreement; transfer fee paid; transferee's designated owner must complete initial training; transferee obtains required insurance. |
| Termination for Cause | Immediate termination without cure for: failure to select site/complete training; material misrepresentation; felony conviction; unauthorized use of confidential information/marks; abandonment for 5+ consecutive days; unauthorized transfer; bankruptcy/insolvency; repeated failures (2+ in 12 months). With cure period: 5 days for payment defaults; 10 days for insurance defaults; 30 days for other defaults. |
| Non-Compete Period | 2 years after expiration or termination |
| Non-Compete Details | For Baguette Factory/Production Unit: within 50-mile radius of approved location or protected territory (whichever is greater) and within 50 miles of any other Lee's Sandwiches business. For Non-Production Unit: 12-mile radius. For Mall Unit: 3-mile radius. Prohibits owning, financing, managing, operating or providing services to any competitive business, and diverting customers. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchised business must always be under the direct full-time day-to-day supervision of the designated owner, who must own at least 5% equity interest and must complete the initial training program. If franchisee is a developer of multiple businesses, franchisee must participate in a supervisory role in each franchise opened. |
| Required Suppliers | Franchisees must purchase Lees Sandwiches Products (bakery flour, dough, meat products, desserts and other proprietary items) from Lee Bros. Foodservices, Inc. or LQNN, Inc. (franchisor affiliates) or designated distributors. Furniture, fixtures, equipment, inventory, and signage must meet franchisor specifications. |
| Supply Restrictions | Approximately 30-60% of establishment expenditures and 80-90% of ongoing expenditures must be from franchisor, affiliates, approved suppliers, or according to franchisor specifications. Franchisor approval required for alternative suppliers within 30 days of submission. |
| Franchisor Revenue from Suppliers | LQNN, Inc. recognized revenues of $8,887,726 from sales to franchisees in fiscal year ending December 31, 2021, representing 21.5% of LQNN's total revenues of $42,038,942. Franchisor and affiliates may derive profits, discounts, commissions, rebates and other economic benefits from franchisee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Lee's Sandwiches does not offer direct or indirect financing and does not guarantee franchisee leases or other obligations. |
Lee's Sandwiches Franchise Earnings — Item 19
Lee's Sandwiches does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Lee's Sandwiches does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Lee's Sandwiches Litigation & Risk Flags
Clean Litigation RecordLee's Sandwiches has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Lee's Sandwiches System Growth
Total Units
48
Franchised
39
Company-Owned
9
Lee's Sandwiches currently operates 39 franchised locations and 9 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 1 | 46 |
| 2020 | 2 | 0 | 48 |
| 2021 | 1 | 1 | 48 |
Transfers: 3 | Closures: 1
State Registrations
Registered in 12 states: CA, FL, HI, IL, MD, MI, MN, NY, TX, UT, VA, WA
Franchisor Financials (Item 21)
Revenue
$2.2M
Net Income
$1.3M
Total Assets
$3.5M
Audited by Chu and Waters, LLP for year ending December 31.
Lee's Sandwiches Franchise — FAQ
The total investment to open a Lee's Sandwiches franchise ranges from $196,830 to $1,839,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000 - $75,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Lee's Sandwiches charges a royalty fee of 6.9% of Gross Sales of gross sales, plus a Currently none; if marketing fund established, 2% of Gross Sales. Franchisees must spend 2% of monthly gross sales on local advertising. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Lee's Sandwiches Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Lee's Sandwiches to ensure you have the most up-to-date version.
Lee's Sandwiches does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Lee's Sandwiches has been franchising since 2004. The FDD shows an investment range of $196,830-$1,839,500, a 6.9% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 - $75,000 and the total investment ranges from $196,830 to $1,839,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Lee's Sandwiches and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Lee's Sandwiches or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com