Firehouse Subs
Firehouse Subs offers large portion hot submarine-style sandwiches in a firehouse-themed restaurant setting. Known for its unique atmosphere and economical pricing, it operates in the quick-service restaurant sector.
About Firehouse Subs
Firehouse Restaurant Group, Inc., doing business as Firehouse Subs, is an American multinational fast casual restaurant chain based in Jacksonville, Florida, that specializes in submarine sandwiches. It was founded in 1994 in Jacksonville, Florida by former firefighter brothers Chris and Robin Sorensen. It is a subsidiary of Restaurant Brands International, which also owns the chains Burger King, Popeyes, and Tim Hortons.
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Firehouse Subs franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single FIREHOUSE SUBS® Restaurant ranges from $379,650 to $1,396,100, depending on the type of restaurant (Traditional, End-Cap Strip Mall with Drive Thru, or FreeStanding with Drive Thru) [p.1]. This range includes the cost paid to the franchisor or its affiliates and does not include real estate costs [p.34].
What is the initial franchise fee?
The standard initial franchise fee for a 10-year Franchise Agreement term is $20,000 [p.22]. This fee must be paid in full upon signing the Franchise Agreement and is non-refundable [p.22, p.33, p.214].
What are the ongoing royalty and advertising fees?
The FDD does not provide specific details about the amounts of ongoing royalty and advertising fees. This isn't specified in the excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is for a period as set forth on the Key Contract Data page [p.212]. You are obligated to operate the Franchised Restaurant and perform under this Agreement for the full term. To renew the franchise, you must give written notice to the franchisor not less than six (6) months nor more than twelve (12) months prior to the end of the initial Term [p.212].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot sell, assign, transfer, convey, donate, pledge, mortgage, or otherwise encumber any interest in the franchise agreement without the prior written consent of the franchisor [p.242]. This restriction applies not only to you but also to any successors or entities that own an interest in your franchise [p.242].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.449]. Additionally, if the franchisee continues to operate the Franchised Restaurant after the term without express written authorization or fails to renew, the franchisor may terminate the agreement at any time after the end of the Term upon thirty (30) days prior written notice [p.212].
What financial requirements — net worth and liquid capital — do I need to qualify?
If the franchisor's most recent financial statements are unaudited and show a net worth of less than $100,000.00, you may request that the franchisor arrange for the escrow of initial investment and other funds paid by you until the obligations of the franchisor are fulfilled [p.6]. This isn't specified in the excerpts regarding specific liquid capital requirements beyond the mention of cash equivalents for highly liquid investments with original maturities of three months or less and credit card receivables [p.156, p.104].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. According to the FDD excerpts, the franchise granted is non-exclusive [p.211], and you are only given rights to establish and operate a Franchised Restaurant at a specific location without any territorial exclusivity [p.51]. Additionally, the franchisor retains the right to develop and operate Firehouse Subs Restaurants anywhere in the world, including within your Development Area [p.51].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training on operating a Firehouse Subs Restaurant, including training for the franchisee's Managing Owner and up to three additional employees at the franchisee's cost [p.226]. Franchisees may also request additional guidance and assistance from the franchisor, though this is not guaranteed and may incur fees [p.228].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 1,109 franchised Traditional Development Firehouse Subs Restaurants in the franchise system. Out of these, 23 restaurants permanently closed during the period without being open for less than 12 months before closing [p.69]. Additionally, 126 franchisees had their agreements terminated, cancelled, not renewed, or otherwise ceased to do business under the Franchise Agreement or Development Agreement and left the system during the most recently completed fiscal year [p.87].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and it is included in the Disclosure Document. Additionally, the franchisor may provide actual records of an existing outlet being considered for purchase [p.69]. However, other than these specified instances, the franchisor does not make any financial performance representations or authorize its employees to do so [p.76].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the products authorized by the franchisor, as per [p.59]. You must purchase or lease fixtures, equipment, and supplies from suppliers approved by the franchisor, which may be more expensive than other options, according to [p.3] and [p.36].