Penn Station, Inc. Franchise
Cost, fees, owner earnings, closure rate and litigation for a Penn Station, Inc. franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Penn Station, Inc. discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
318 units (2025): Average net sales $821,723; median $781,499. Average operating income $174,181; median $152,422. Average EBITDA $102,250; median $81,511. Data unaudited, excludes owner compensation, depreciation, taxes, interest, multi-unit overhead.
What a Penn Station, Inc. franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $25,000 | Item 5 — paid up front, before you open |
| Royalty | 2% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 4% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $440,600 – $819,700 | Item 7 — franchisor's own low/high estimate |
Royalty 2-8% tiered by sales; 2% national fund; 2% local advertising; multi-unit incentive programs available.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Penn Station, Inc. system size and owner turnover
| Total outlets | 322 |
| Ceased operations | 4 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 13 |
| Closure rate | 1.2% of outlets |
4 cease operations (2025); 0 terminations; 13 transfers in 2025. Stable system.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Penn Station, Inc. worth it? — how it compares to 164 similar franchises
| Ongoing fees | 4% of sales | lower than most (median 8%) |
| Startup cost | from $440,600 | about average (median $481,500) |
| Disclosure honesty | Grade B | more honest than 85% of quick service restaurants franchises |
| Closure rate | 1.2% of outlets | about average |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Penn Station, Inc.
The franchisor's framing: 318 units (2025): Average net sales $821,723; median $781,499. Average operating income $1… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Penn Station, Inc. franchise — frequently asked
- How much does a Penn Station, Inc. franchise cost?
- The FDD lists a total initial investment of about $440,600–$819,700, including a $25,000 initial franchise fee.
- How much do Penn Station, Inc. franchise owners make?
- 318 units (2025): Average net sales $821,723; median $781,499. Average operating income $174,181; median $152,422. Average EBITDA $102,250; median $81,511. Data unaudited, excludes owner compensation, depreciation, taxes, interest, multi-unit overhead. We grade this disclosure B for honesty.
- What are the Penn Station, Inc. franchise fees?
- Penn Station, Inc.'s FDD discloses a $25,000 initial franchise fee, a 2% royalty on gross sales, a 2% advertising-fund contribution, for roughly 4% of gross sales in recurring fees before rent, labor, or debt service. Royalty 2-8% tiered by sales; 2% national fund; 2% local advertising; multi-unit incentive programs available.
- What is the Penn Station, Inc. franchise profit margin?
- Penn Station, Inc. does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 318 units (2025): Average net sales $821,723; median $781,499. Average operating income $174,181; median $152,422. Average EBITDA $102,250; median $81,511. Data unaudited, excludes owner compensation, depreciation, taxes, interest, multi-unit overhead. Recurring fees alone take about 4% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Penn Station, Inc. franchise failure rate?
- 4 cease operations (2025); 0 terminations; 13 transfers in 2025. Stable system.
- How many Penn Station, Inc. locations are there?
- Penn Station, Inc.'s FDD reports 322 total outlets, with 4 that ceased operations in the most recent reporting year and 13 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Penn Station, Inc. have complaints or lawsuits?
- Penn Station, Inc. discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Penn Station, Inc. franchise worth it?
- It depends on the numbers, not the pitch. Penn Station, Inc. scores B on disclosure honesty, carries about 4% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Penn Station, Inc. or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.