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QSRFull DisclosureItem 19: ✓ DisclosedHigh Confidence · 85/100FDD data: 2025 · Fresh

Penn Station Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Penn Station.

Based on 2025 FDD · 5 filings in corpus

FranchiseIQ Score
80
A
Low Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
C+
68/100
5/7 metrics · High confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a Penn Station franchise cost and make?

Based on FDDIQ's FDD corpus, a Penn Station franchise shows an estimated initial investment of $474K – $765K. Reported owner economics show $100K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$474K – $765K
Total initial investment
Profit / Revenue
$100K
FDD Item 19 signal
Payback Signal
6.2 years
Modeled return metric
SBA Default Rate
0.0%
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse QSR franchises →Compare similar franchises →

Quick fee read: $25K franchise fee · 2% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

Free decision snapshot

Before you talk to Penn Station, check the numbers buyers usually miss.

The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Penn Station Franchise Analysis

Penn Station requires a total initial investment of $474K to $765K (midpoint approximately $619K), with an initial franchise fee of $25K. The ongoing fee burden is 2% . This is below the industry average of approximately 14.2%, leaving more margin for the operator.

According to Item 19 of the 2025 FDD, the median revenue for Penn Station locations is $771K. The implied franchisee EBITDA is approximately $100K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 16.2% with a payback period of approximately 6.2 years.

Penn Station operates approximately 322 franchised units. Unit count is relatively stable with a -0.3% year-over-year change. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.

Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.

Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology

Total Investment Range$474K – $765K
MinMid: $619KMax

Key Metrics

Franchise Fee
$25K
Royalty Rate
-
Ad Fund Rate
2%
Total Burden
-
Royalty + ad fund
Units (2023)
322
-1 vs prior yr
Net Unit Growth
→ -0.3%
Year over year
Net Closure Rate
0.3%
From FDD Item 20
Cash-on-Cash Return
16.2%
Annual estimated return
Payback Period
6.2 yrs
Break-even timeline
SBA Default Rate
0.0%
vs ~7.2% industry avg
Median Revenue
$771K
Item 19 disclosed
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CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Penn Station vs. QSR Average

MetricPenn StationQSR Avg
SBA Default Rate0.0%▲9.4%
Cash-on-Cash Return16.2%▲14.2%
Total Investment$619K$380K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

SBA Loan Performance

Real lending data from SBA 7(a) loans (2010-2013). 14 loans across 6 states.

Default Rate
0.0%
Low Risk
Total SBA Loans
14
6 states
Total Loan Volume
$6.0M
SBA 7(a) approved
Avg Loan Size
$427K
Per franchisee
Loan Status Breakdown
13
Paid in Full (93%)
0
Currently Active
0
Charged Off
$0
Total Charged Off ($)
● Paid● Active● Charged Off

Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.

Compare

Penn Station vs Chick-fil-A, Inc.Penn Station vs McDonald'sPenn Station vs Get Fried

Similar Franchises · QSR

Chick-fil-A, Inc.
Revenue Only
$427K–$2.3M
McDonald's
Revenue Only
$1.5M–$2.7M
Get Fried
Revenue Only
$102K–$505K
Chick-fil-A, Inc.
$427K – $2.3M
McDonald's
$1.5M – $2.7M
Get Fried
$102K – $505K
MAGNOLIA BAKERY
$422K – $1.2M

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Questions to Ask Before You Sign

5 data-driven questions every Penn Station franchise buyer should ask.

  1. 1.What is Penn Station's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Penn Station disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Penn Station →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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