How to Finance a PrimoHoagies Franchise: Resales and SBA Rules
By Anthony Cornella
A PrimoHoagies franchise loan funds a compact sandwich shop built around Italian specialty hoagies, a tight kitchen line and a lot of lunch and catering traffic. Because the brand is SBA-listed, sells both new locations and existing restaurants, and carries several specific directory notes about real estate and leases, the way a buyer structures the deal matters as much as the amount borrowed.
This article covers what the company has said publicly about its system, how new builds and resales differ for financing, what each of the brand’s SBA Franchise Directory notes means in plain English, and how lenders evaluate a PrimoHoagies purchase.
US Professional Funding is not affiliated with, sponsored by or endorsed by PrimoHoagies; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
PrimoHoagies Franchise Loan at a Glance
- System size: more than 120 restaurants and about 80 franchise owners, including 20 multi-unit owners, according to the company in October 2026.
- Heritage: founded in South Philadelphia and operating for more than 30 years.
- New prototype: five locations of a roughly 1,100-square-foot design were in development as of October 2026.
- Resales: the company says about 10 to 15 existing restaurants are available for purchase, mostly in greater Philadelphia and South Jersey.
- Franchise fee, royalty, ad fund and investment range: not verified from a current FDD for this article; confirm them in Items 5, 6 and 7.
- SBA Franchise Directory: listed, with three notes covering real estate collateral, lien position and lease/leaseback requirements.
What Is PrimoHoagies?
PrimoHoagies is a Philadelphia-style sandwich brand built around fresh, made-to-order Italian specialty hoagies. The company says it has been bringing the taste of Philadelphia to its communities for more than 30 years, and the brand traces its roots to South Philadelphia.
System today. In October 2026 the company reported more than 120 restaurants and about 80 franchise owners, 20 of them multi-unit operators, and said it had added seven new franchisees during the year. The system is centered on the Philadelphia region, and the company’s 2026 announcements included shops in Pennsylvania, Delaware and North Carolina. The company opened its first airport location in February 2026.
Formats. Shops are compact counter-service restaurants, usually in leased retail space. The company has introduced a smaller prototype of roughly 1,100 square feet, with five such locations in development as of October 2026. A smaller footprint generally means lower build-out cost and rent, which can make a loan easier to size.
Why lenders view the brand the way they do. Lenders see a long-established regional concept with a deep base of multi-unit operators and a steady supply of existing restaurants for sale. Underwriting focuses on location-level cash flow, lease terms and the buyer’s operating experience, and SBA lenders also have to account for the brand’s specific directory notes.
PrimoHoagies Franchise Costs
The current FDD is the only reliable source for fees and the estimated initial investment, and we could not verify those figures for this article. Here is how the cost categories typically work for a sandwich shop of this type.
Initial franchise fee. Item 5 of the FDD lists the fee, when it is due and any discounts for additional units or qualifying buyers.
Real estate and build-out. Most PrimoHoagies shops are leased. The build-out covers plumbing, electrical, ventilation where required, finishes, a service counter and the sandwich line. The smaller prototype should lower this category, though costs vary by market and site condition.
Equipment. Slicers, refrigerated prep tables, reach-in and walk-in coolers, freezers, ovens or toasters for hot sandwiches, a point-of-sale system and smallwares make up the equipment package.
Opening costs and working capital. Opening inventory, training travel, grand-opening marketing, deposits, insurance and additional funds for the first months round out the investment.
Total investment. Expect the Item 7 table to group costs into categories such as:
- Initial franchise fee
- Leasehold improvements and construction
- Furniture, fixtures and equipment
- Signage and décor
- Point-of-sale and technology
- Opening inventory and supplies
- Training expenses
- Grand-opening marketing
- Security deposits, insurance, licenses and permits
- Additional funds for the initial operating period
Existing restaurants cost differently. The company’s development team has said that select existing restaurants can offer a lower initial investment than new construction, depending on the transaction and required improvements. A resale price reflects the restaurant’s sales, cash flow, lease and condition rather than the Item 7 table.
Ongoing Fees and How They Affect Your Loan
Royalty and advertising. Item 6 of the FDD lists the royalty, the advertising or brand fund contribution and any local marketing requirement. These are usually percentages of gross sales and come off the top before rent, payroll or debt service.
Technology and other fees. Point-of-sale, online ordering and software fees, training fees for new managers, transfer fees on a resale and renewal fees should all be read in Item 6.
Remodels. Franchise agreements typically require periodic updates to décor and equipment. A buyer of an older restaurant should ask whether a refresh is due soon, because that cost belongs in the purchase financing or a planned future loan.
How lenders factor these costs in. A lender starts with the restaurant’s sales, subtracts food and paper costs, labor, rent, royalties and advertising, and tests whether what remains covers the PrimoHoagies franchise loan payment with a cushion. Because royalties and ad fund contributions rise with sales, lenders model them at the actual rate rather than a flat amount.
Franchisor Requirements for New Owners
We could not verify published net worth or liquid capital minimums for PrimoHoagies, so ask the development team for current requirements and confirm them in the FDD. Expect the franchisor to look at:
- Financial capacity: enough liquidity to fund the equity injection and keep reserves after opening.
- Operating involvement: a plan for who will run the restaurant day to day and complete the franchisor’s training.
- Restaurant or management experience: helpful for approval and important to lenders.
- Growth plans: with 20 multi-unit owners in the system, the company has shown openness to operators who want more than one shop.
Ways to Own a PrimoHoagies
A new restaurant. A new shop requires site selection, lease negotiation, build-out and equipment, plus a ramp-up period. Lenders underwrite it on projections, the buyer’s experience and the franchisor’s support. Our overview of franchise start-up financing explains how these loans are structured.
Buying an existing restaurant. The company has highlighted acquisitions as a path into the system, with about 10 to 15 existing restaurants available. In 2026 it described owners acquiring shops from long-time franchisees, including one restaurant sold after nearly 20 years under the same owner. Resales give lenders actual sales history, which often makes financing more straightforward. Read our article on buying a franchise resale for transfer approval and timing.
Multi-unit growth. Existing owners can add shops through new development or acquisition. Lenders look at combined cash flow once the first restaurant is established.
Financing Options for a PrimoHoagies Franchise
SBA 7(a) loans. Because PrimoHoagies is on the SBA Franchise Directory, an SBA 7(a) loan is often the core of a PrimoHoagies franchise loan. A 7(a) loan can cover the franchise fee, build-out, equipment, opening costs and working capital for a new shop, or the purchase price, transfer costs and working capital for a resale.
SBA 504 loans. If a buyer purchases the building that houses the restaurant, an SBA 504 loan can finance the real estate and long-lived fixed assets. Owning the real estate triggers two of the brand’s directory notes, covered below, so the structure needs careful review.
Conventional term loans. Experienced multi-unit owners with strong cash flow may prefer a conventional business loan, especially for acquisitions of existing restaurants. Our page on franchise restaurant acquisition financing explains how we approach these purchases.
Equipment financing. Slicers, refrigeration, prep tables, ovens and point-of-sale systems can be financed separately, which can help with a remodel or an equipment refresh at an older shop. See restaurant equipment financing and leasing.
Working capital and lines of credit. Sandwich shops carry weekly food purchases, payroll and catering orders that may be invoiced and paid later. A line of credit can bridge a slow season or the first months after an ownership change. Explore restaurant working capital options.
Seller financing on resales. A retiring franchisee may agree to carry part of the price. Any seller note must be acceptable to the senior lender and is typically subordinate to it, and SBA rules may limit how seller financing is structured or counted toward the buyer’s equity.
SBA Loans for PrimoHoagies Franchisees
SBA lending for franchises runs through the SBA Franchise Directory, a list of brands whose franchise agreements have been reviewed for SBA eligibility. A listing streamlines the lender’s review but does not approve any borrower. PrimoHoagies appears on the directory under code S1352, with three notes.
Note 1: real estate collateral and the landlord documents. When the real estate where the restaurant operates will secure the SBA-guaranteed loan, the franchisor’s Conditional Assignment of Lease and Consent and Agreement of Landlord may not be executed. In plain English, those documents are designed for a leased shop. If the borrower owns the property and pledges it to the lender, the landlord-consent paperwork should not be signed, so the lender’s claim on the real estate is not undercut.
Note 2: lien position. The lender or certified development company must obtain the correct lien position on all collateral, as required by the SBA’s lending rules. Expect the lender to confirm its claim on equipment, inventory and any real estate before closing.
Note 3: no lease/leaseback for SBA borrowers. The franchise agreement contains a lease/leaseback requirement, and that requirement is not allowed for applicants receiving SBA assistance. If the franchisee or an affiliate owns the real estate, it may not lease the property to the franchisor so the franchisor can lease it back. A buyer who owns or plans to buy the building should raise this with the franchisor and lender early.
Program limits and tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Bring the FDD, franchise agreement, lease or purchase contract, personal financial statement, tax returns and projections to your first lender meeting. Our SBA loan calculator provides early payment estimates for planning only and is not an offer or approval.
How Lenders Evaluate a PrimoHoagies Deal
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and owners typically sign personal guarantees.
Net worth and liquidity. Lenders want the equity injection plus reserves after closing, especially for a new build with a ramp-up period.
Industry and management experience. Restaurant, food service or multi-site management experience strengthens a request. For a first-time owner, completing the franchisor’s training and hiring an experienced manager helps.
Business plan and projections. Strong projections reflect lunch-driven traffic, catering, online ordering, labor scheduling and food cost control. A new shop’s plan should show a realistic ramp-up rather than assuming mature sales from the first month.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 17 and 19, plus the lease/leaseback provision noted in the directory. Review Item 19 to see whether the FDD includes financial performance representations. Our guide to how lenders read an FDD explains the key items.
Site and lease. For leased shops, lenders check the remaining lease term and options, rent, assignment rights on a resale and any landlord consent requirements.
Historical financials for resales. Expect to provide several years of the restaurant’s profit and loss statements, point-of-sale sales reports and tax returns, plus an equipment list and condition assessment.
Kitchen Equipment and the Small-Footprint Prototype
A hoagie shop’s equipment package is lighter than a full-service kitchen but still essential. Commercial slicers, refrigerated sandwich prep tables, walk-in or reach-in refrigeration, ovens or toasters for hot sandwiches and the point-of-sale system all wear out and need replacement. When buying an existing shop, ask for the age and service history of each major item and plan for replacements in the financing.
The roughly 1,100-square-foot prototype is designed to fit more sites. For a borrower, a smaller space can mean less build-out, lower rent and a smaller loan, but the shop still needs enough prep and storage capacity to handle peak lunch and catering volume.
Multi-Unit Growth and Development
With about 20 multi-unit owners in a system of roughly 80 franchise owners, growth beyond one shop is well established at PrimoHoagies. Owners add restaurants through new development or by buying existing shops, and the company has pointed to acquisitions as a path to multi-unit growth.
Financing additional shops. Once the first restaurant has a track record, lenders can underwrite combined cash flow. Owners may finance each shop separately or consolidate debt across several locations. Our article on multi-unit franchise financing explains how lenders view growing operators.
Real-World Scenarios
A first-time owner buying a resale. A buyer with corporate management experience purchases an established shop from a retiring franchisee. An SBA 7(a) loan covers the purchase price, transfer costs and working capital, with the lender basing its analysis on the shop’s actual sales.
An existing owner opening a prototype. A two-unit owner signs a lease for a small-footprint shop. The lender underwrites the new shop’s projections alongside the cash flow of the existing restaurants.
A buyer who owns the building. A buyer who owns a small retail building wants to open a PrimoHoagies there with SBA financing. The lender and franchisor confirm that the landlord-consent documents will not be used and that the property will not be leased to the franchisor under a lease/leaseback arrangement.
Common Mistakes to Avoid
- Overlooking the directory’s lease/leaseback note when the borrower or an affiliate owns the real estate
- Signing landlord-consent documents for property that will secure the SBA loan
- Buying an older shop without budgeting for equipment replacement or a remodel
- Projecting mature sales for a new shop from the first month
- Ignoring the remaining lease term and assignment rights on a resale
For more pitfalls across the industry, read about restaurant loan mistakes to avoid.
Next Steps to Finance Your PrimoHoagies Franchise
Step 1: Request the FDD. Contact the development team, confirm fees and requirements, and ask about available existing restaurants and new sites.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 17 and 19, the franchise agreement and its lease/leaseback provisions with a franchise attorney and accountant.
Step 3: Choose new or existing. Compare the cost and risk of a new build against a resale with operating history.
Step 4: Talk with a financing specialist. Decide between SBA 7(a), SBA 504 and conventional options and size the loan around your equity and reserves.
Step 5: Assemble the loan package. Gather your personal financial statement, tax returns, résumé, projections and the lease or purchase agreement.
Step 6: Close and open. Coordinate the lender’s timeline with franchisor approval, training and the opening or transfer date.
PrimoHoagies Franchise Loan FAQs
How much does a PrimoHoagies franchise cost?
The total depends on whether you build new or buy an existing shop. Item 7 of the current FDD gives the estimated initial investment for a new restaurant, and resale prices depend on the shop’s sales and condition.
What is the PrimoHoagies franchise fee and royalty?
Items 5 and 6 of the current FDD list the initial fee, royalty and advertising contributions. Confirm them with the development team before you apply for financing.
Is PrimoHoagies SBA approved?
PrimoHoagies is listed on the SBA Franchise Directory under code S1352, so eligible buyers can apply for SBA 7(a) and 504 loans, subject to the directory’s notes.
What does the lease/leaseback note mean?
If an SBA borrower or its affiliate owns the real estate, it cannot lease the property to the franchisor for a lease back. The franchise agreement’s lease/leaseback requirement is not allowed for SBA applicants.
Can I buy an existing PrimoHoagies?
Yes. The company has said about 10 to 15 existing restaurants are available, mostly in greater Philadelphia and South Jersey. Transfers require franchisor approval.
Is a resale cheaper than a new shop?
The company has said select existing restaurants can offer a lower initial investment than new construction, depending on the deal and required improvements.
Can I finance equipment separately?
Yes. Equipment financing can cover slicers, refrigeration and other kitchen items, though it must fit the senior lender’s lien position.
Can a first-time owner get a PrimoHoagies franchise loan?
Yes, if the franchisor approves the candidate and the buyer meets lender requirements. Resales with operating history and an experienced manager can help.
Can I own several PrimoHoagies shops?
Yes. About 20 of the system’s roughly 80 franchise owners operate multiple restaurants, according to the company.
Does PrimoHoagies offer financing?
Review Item 10 of the current FDD for any financing the franchisor offers. Most buyers arrange their own SBA or conventional loans.
Final Thoughts
A PrimoHoagies franchise loan can follow two very different paths: a new small-footprint build or the purchase of an established shop from a long-time owner. Either way, confirming the fee schedule in the FDD, respecting the SBA directory’s real estate and lease notes and keeping solid reserves will put a buyer in a strong position with lenders.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and refinancing. Learn more about our franchise financing and restaurant financing solutions.
