Lee’s Sandwich Shop is a must-visit quick-service restaurant that combines European and Asian cuisine in one menu. Hailed as one of the most successful Asian food franchises in the Southwest, the chain serves freshly-baked Vietnamese baguettes and coffee to over 60 locations in America and Taiwan.
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Lee’s Sandwiches Franchise Wiki
Chieu Lee founded Lee’s Sandwiches but it was his parents, Ba Le and Hanh Nguyen who paved the way to its establishment in 1983. Lee’s Sandwich was further developed by Chieu’s son, Minh, who thought about combining European and Asian cuisine in their menu. They’re a family of Vietnamese entrepreneurs who managed to raise their company to become the World’s largest Banh Mi Chain.
Lee’s Sandwiches Franchise Benefits
Here are some of the advantages of owning a Lee’s Sandwiches as I see it:
- Unique and Interesting Business Concept – Lee’s Sandwiches attempt at fusing two different cuisines resulted in an award-winning business model that helped the company become one of the fastest-growing restaurant chains in the west. They were able to bring harmony to two different cultures that Minh noticed that people would “come to Lee’s Sandwiches just because it’s Lee’s Sandwiches.”
- Award-winning franchise – Lee’s Sandwiches have proven its success in the market with its several recognitions. IN 2003, Chieu Le, the founder of the company was recognized as the Business of the year. In the same year, the company received the 2003 Regional Entrepreneurial Success Award. This makes the franchise a competent option for you.
- More Opportunities for Global Expansion – Currently, the majority of locations of the business are located in the United States. In 2015, it expanded its horizon to Taiwan. This is a good indication that this business will not hinder from achieving entrepreneurial growth beyond your comfort zone. It’s also worth mentioning that it is a globally renowned fast food company that is known to be “The World’s Largest Banh Mi Chain”. Not only will it save you from struggling to establish a presence, but you may also have a chance of monopolizing the market in your chosen area.
- Four franchise options – Lee’s Sandwich has four options for you to choose from, depending on the feasibility of your business plan and the allocation of your budget. This will give you an opportunity to decide which path you want to take and which aspect of the business you’ll want to explore.
Challenges Of Franchising Lee’s Sandwiches
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There are downsides to owning a Lee’s Sandwiches location and it’s important to understand these challenges.
- Low Brand Awareness – In most parts of the midwest, diners have never heard of Lee’s Sandwiches before. In much of America, consumers haven’t even heard of a banh mi sandwich. I suggest opening a new locations in places like California, Nevada or areas with a significant Vietnamese community who will be familiar with the brand.
- Negative Reviews Online – while negative comments do not necessarily represent the whole company, their presence targeting the brand online may affect the reputation of your business. People have complained about their worst experience in other branches. Some common complaints include not enough meat in the sandwich. While I understand this critique, this is a low-cost meal option so the company can only give out so much protein and maintain profit.
- Food Safety Controversy – Some of the locations of the franchise brand has a record of food safety risk way back in 2015 because of the preparation of non-USDA approved meat which resulted in cases of food poisoning. It’s been six years since that controversy yet there is still a possibility that some customers haven’t forgot. Hence, it would be best if you implemented strict food and environment safety protocols so customers feel confident about your location.
- High Calorie Count – The current market demands healthier fast food alternatives that will not make them feel guilty with every bite. The calorie count of some food items in this brand could go as high as 900 calories. The challenge here, then, is for you to innovate a recipe that your customers would still indulge too without compromising their commitment to a healthier diet.
- Limited Presence in Online Delivery Apps – As discussed above, Lee’s sandwiches can only be found on Grubhub. It’s not that bad, knowing that it is the second most-used food delivery app in the United States. As the trend of at-home consumption and mobile food delivery progresses today, the company should consider partnering with other apps food delivery hubs like Uber Eats, Postmates, and DoorDash. That way, you could establish more presence online, a factor that is now crucial to the success of your business.
How Many Calories Does a Lee’s Sandwiches Have?
Lee’s Sandwich top 10 popular products have an average calorie count of 478 cal. Its top 7 sandwich called the #6 BBQ Pork Sandwich has the most calorie count with almost 700 cal per serving. Pennyworth Drink, its least popular product, has the lowest count at 90 calories. Sugarcane Juice, Small, on the other hand, is the most popular drink with a calorie count is in the lower side at only 230 cal.
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#11 Special Combination Sandwich did not make it to the list but it’s worth noting that its calorie count surpassed BBQ Pork Sandwich. At a whopping 900 calories, this sandwich is composed of 15% protein, 42% carbohydrate, and 43% fat. It would take you 242 minutes of walking, 87 minutes of running, and 125 minutes of bicycling to burn it off from your body.
Lee’s Sandwiches Franchise Cost
You should be familiar with the financial requirements and costs of purchasing the Lee Sandwich franchise before deciding whether to buy it. I outline the essential financial requirements and any additional fees of the chain below. But before we dive in, here are some of the financial terms you’ll encounter in this section.
- Liquid capital – refers to the entire amount of cash you will need on hand and is available to use at any time.
- Net worth – refers to the value of all your non-financial and financial assets minus the value of all your outstanding liabilities.
- Total investment – is the total capital or the total money you will need to put into the franchise over time to get it up and running.
- Franchise fee – refers to the amount you must pay to the franchisor to use its brand and resources.
|Total Investment||$195,890 – $1,838,560|
|Franchise Fee||$50,000 to $75,000|
Lee’s Sandwich offers four franchise options: Baguette Factory Production Unit, Production Unit, Non-Production Unit, and Mall Unit. Each concept comes with a different price tag.
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If you can only invest $190,830 to $398,870, you should consider choosing the Mall unit. If you’re willing to spend as much as $1,107,000 to $1,935,000, then the baguette factory production unit is a viable option for you. Depending on your choice, the cost of the franchise fee would range from $35,000 to $75,000.
The franchise agreement of Lee’s sandwich lasts for 10 years, but if you want to continue after a decade of franchising, you may renew your contract and add-on another 5 years. The renewal is not offered automatically because they require you to qualify to certain criteria before approving your application.
Aside from the mentioned fees above, you also have to include the ongoing fees on your budget allocation. The royalty fee is 6.9% of your gross sales. There are also ad fees that will cost you 2% of gross sales. Make sure you find it acceptable to hand over 8.9% of each transaction to corporate each month.
Lee’s Sandwiches Franchise Requirements
This is highly confidential information. Because this company had not disclosed it. You can only know about this after applying for the franchise. All this will be discussed when the basic criteria are met and fulfilled. You can know the procedure as follows.
Lee’s Sandwiches Franchise Profit
Here’s a brief analysis of the financial performance of Lee’s Sandwiches.
|Systemwide Annual Sales||$32.1 Million (as of 2021)|
|Average Annual Sales per Unit||$535,000|
|Average Franchise Profit||$339,110|
As of 2021, Lee’s Sandwiches earned a revenue of $32,100,000 across its locations. Currently, there are at least 60 franchise units; hence, we may assume that each of them earns an average annual sales of $535,000. At this amount of revenue, the highest profit you may gain is $339,110 which translates to 63.4% profit margin.Nonetheless, this data does not necessarily represent the future of your business venture because the profitability of this franchise would depend on certain factors such as area management and level of optimization of operational costs. Lee’s Sandwich has been around since 1983 but they only started franchising in 2004.
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Franchise revenue depends on a wide range of factors, as does profit. How much money you can make from any franchise depends on a number of specific factors such as franchise location, labor costs, commercial lease rates and a number of other factors.
Is the Lee’s Sandwiches Franchise Right For You?
Lee’s Sandwiches was not particular with the qualifications that they’re looking for in a franchise owner. You only have to be a serious banh mi and cafe sua da lover who’d introduce their concept to your community. You also need to have a working capital of $35,000, a net worth of $339,110.
When it comes to experience, they are willing to welcome you in their franchise family despite being an amateur because they offer training that will help you learn how to manage your own business. On top of that, this franchise brand requires their new franchisees to undergo ongoing training programs to ensure that they’re well-versed in the best practices within the restaurant industry.
Lee’s Sandwich encourages you to grow as an entrepreneur without leaving you helpless. Even in the marketing and advertising aspect, they got you covered to help you succeed in your venture. If the support they provide is starting to sound like the one you need, then you should consider franchising with them.
If you’re already thinking of investing, then you should start saving up $50,000 to $75,000 for the franchise fee that will grant you the license to operate their franchise. You should also start looking at their franchise options and see which of them fits your budget and passion.
How to Apply For Lee’s Sandwiches Franchise
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To get the franchise first you have to fill the form. Then the company officials will contact you for further details. After that you you can open this franchise.
Lee’s Sandwiches Franchise Contact details
Is it profitable or not?
Ans: It is fast moving consumer good products, so there is fewer margins but your sale is too high. So, obviously you can make more profit from this business
So far we have shared the basics for this franchise. It is the most profitable franchise. You will never doubt your decision to start this franchise. Go ahead and achieve your goal. If you find more information please feel free to share with us. Share your thoughts and we will definitely contact you with new franchise and opportunities. Stay Tuned for more franchise. Thank you
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Disclaimer: The information given in this article like investment may varry from place to place, so we are not sure about the investment part.
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