Published on 23 Nov 2021 Time 8 min read Last update by 2 Feb 2024

Firehouse Subs Franchise Cost for 2024 Worth It?

Play Video

Firehouse Subs offers hot submarine-style sandwiches at affordable prices in a unique fire-fighting-themed atmosphere. Their popular menu items include the Barbecue Cuban Sub, Italian Sub, and Hook and Ladder Sub.

Follow the podcast

Apple Podcast    Spotify    Google Podcast 

Firehouse Subs was founded by brothers Chris and Robin Sorenson who come from a line of police officers and firefighters and previously served as firefighters themselves. Their first location opened in Jacksonville, FL in 1994, and since they began offering franchises in 2005, they have grown to over 1,180 locations across 46 states, Puerto Rico, and Canada. The Current CEO is Don Fox, who has held that position since 2009. Before becoming CEO, Fox served as Chief Operating Officer.

As of 2020, there were 1,114 franchised outlets and 38 corporate outlets. Of the franchised outlets, the vast majority (over 1,000) were traditional restaurants, as opposed to end-cap strip mall restaurants with a drive-thru or free-standing restaurant with a drive-thru. 

firehouse subs logo e1641395778111

How Is Firehouse Subs Franchise Positioned in the Limited-Service Restaurant Industry?

Firehouse Subs competes in the limited-service restaurant industry, competing with other fast-casual restaurants like Chipoltle, Panera Bread, and Panda Express. It most directly competes in this space with other restaurants specializing in submarine-style sandwiches like Subway, Jersey Mike’s, and local sub shops. It sets itself apart by emphasizing its flavorful meats and hearty portion sizes – big enough to satisfy a firefighter’s appetite.

How Much Is a Firehouse Subs Franchise?

The initial Firehouse Subs Franchise Fee is $20,000. You have to pay this upfront fee when opening a Firehouse Subs franchise.


The more Firehouse Subs franchises you invest in, the greater the opportunity for profit.

Firehouse Subs Franchise Cost

The estimated total investment necessary to begin operation of a Firehouse Subs varies depending on the characteristics of the restaurant site, as summarized below:

  • Traditional restaurant: $189,574 to $917,299
  • End-cap strip mall restaurant with a drive-thru: $309,013 to $801,280
  • Free-standing restaurant with a drive-thru: $349,420 to $997,320

Franchise Ranges from $189,574 to $997,320

The following costs are part of the upfront costs included in the initial investment for a Firehouse Subs location. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Firehouse Subs franchise in 2021. 

Speak to franchise specialist

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Firehouse Subs Franchise Cost (Detailed, by Site Type)

Traditional Restaurant

Type of ExpenditureLow AmountHigh AmountTo Whom Payment Is to Be Made
Deposit$2,500$2,500Us
Balance of Initial Franchise Fee (Less any Deposit)$17,500$17,500Us
Mural$2,600$4,300Artist
Travel and Living Expenses during Training$0$5,000Third Parties
Opening Advertising$5,000$9,600Third Parties
Rental of Site (3 months)$7,000$89,880Third Parties
Real Property Improvements$0$31,477Third Parties
Leasehold Improvements$100,642$343,982Third Parties
Deposits and Prepaid Expenses$0$45,525Third Parties
Signs$2,690$23,500Third Parties
Equipment and Fixtures$44,292$150,000Third Parties
Opening Inventory$7,000$20,000Third Parties
Business Licenses$350$19,298Third Parties
Insurance$0$5,837Third Parties
Additional Funds (Working Capital — 3 months)$0$75,000Third Parties
MIS System Fee$0$1,900Us
Accounting System Fee$0$12,000Third Parties
TOTAL ESTIMATED INITIAL INVESTMENT UNDER THE UNIT FRANCHISE PROGRAM (EXCLUDING REAL ESTATE PURCHASE COSTS)$189,574$917,299 
Development Fee (based on actual 2019 data)$20,000$50,000Us
Vehicle$12,000$18,000Third Parties
TOTAL ESTIMATED INITIAL INVESTMENT UNDER THE AREA DEVELOPMENT PROGRAM$221,574$985,299 
firehouse subs family

End-Cap Strip Mall Restaurant with Drive Thru

Type of Expenditure Low Amount High Amount To Whom Payment Is to Be Made
Deposit $2,500 $2,500 Us
Balance of Initial Franchise Fee (Less any Deposit) $17,500 $17,500 Us
Mural $3,000 $5,000 Artist
Travel and Living Expenses during Training $0 $22,000 Third Parties
Opening Advertising $5,000 $8,000 Third Parties
Rental of Site (3 months) $13,125 $16,500 Third Parties
Real Property Improvements $0 $0 Third Parties
Leasehold Improvements $164,390 $287,645 Third Parties
Deposits and Prepaid Expenses $0 $8,000 Third Parties
Signs $7,920 $13,126 Third Parties
Equipment and Fixtures $84,384 $205,883 Third Parties
Opening Inventory $10,044 $33,100 Third Parties
Business Licenses $0 $1,500 Third Parties
Insurance $550 $12,326 Third Parties
Miscellaneous Expenses (3 months) $0 $90,000 Third Parties
Additional Funds (Working Capital — 3 months) $0 $75,000 Third Parties
MIS System Fee $600 $1,200 Us
Accounting System Fee $0 $2,000 Third Parties
TOTAL ESTIMATED INITIAL INVESTMENT UNDER THE UNIT FRANCHISE PROGRAM (EXCLUDING REAL ESTATE PURCHASE COSTS) $309,013 $801,280
Development Fee (based on actual 2019 data) $20,000 $50,000 Us
Vehicle $12,000 $18,000 Third Parties
TOTAL ESTIMATED INITIAL INVESTMENT UNDER THE AREA DEVELOPMENT PROGRAM $341,013 $869,280
poop 911

Free Standing Restaurant with Drive Thru

Type of Expenditure Low Amount High Amount To Whom Payment Is to Be Made
Deposit $2,500 $2,500 Us
Balance of Initial Franchise Fee (Less any Deposit) $17,500 $17,500 Us
Mural $2,400 $3,500 Artist
Travel and Living Expenses during Training $0 $7,728 Third Parties
Opening Advertising $5,000 $8,500 Third Parties
Rental of Site (3 months) $13,496 $23,000 Third Parties
Real Property Improvements $0 $100,000 Third Parties
Leasehold Improvements $169,700 $495,600 Third Parties
Deposits and Prepaid Expenses $0 $10,756 Third Parties
Signs $2,500 $48,000 Third Parties
Equipment and Fixtures $132,774 $132,774 Third Parties
Opening Inventory $6,900 $27,092 Third Parties
Business Licenses $250 $1,000 Third Parties
Insurance $500 $7,000 Third Parties
Miscellaneous Expenses (3 months) $15,000 $35,000 Third Parties
Additional Funds (Working Capital — 3 months) $0 $75,000 Third Parties
MIS System Fee Based on only 1 Restaurant that paid the full $1,200 prior to opening in 2019 $900 $1,200 Us
Accounting System Fee $0 $1,200 Third Parties
TOTAL ESTIMATED INITIAL INVESTMENT UNDER THE UNIT FRANCHISE PROGRAM (EXCLUDING REAL ESTATE PURCHASE COSTS) $349,420 $997,320
Development Fee (based on actual 2019 data) $20,000 $50,000 Us
Vehicle $12,000 $18,000 Third Parties
TOTAL ESTIMATED INITIAL INVESTMENT UNDER THE AREA DEVELOPMENT PROGRAM $381,420 $1,065,320

Firehouse Subs Franchise Requirements

In addition to the fees associated with opening a franchise, the Firehouse Restaurant Group requires that franchisors have a minimum of $80,000 to invest, a credit score of at least 650, along with a strong inner drive for excellence, devotion to the Firehouse Subs business, community-mindedness, and a love of subs. 

See the complete franchise requirements provided on the franchisor’s webpage.

Owning a Firehouse Franchise Requires Ongoing Fees

  • Royalty: 6% of gross sales (reduced to 3% of gross sales during first two years of operation)
  • Local Advertising: 4% of gross sales
firehouse subs sub e1644255699286

How Much Do Firehouse Subs Owners Make

2019 Weekly AUV / Franchisees Traditional Development. FYE December 29, 2019

$17,000+ $14,000—$17,000 $11,000—$14,000 $8,000—$11,000 $0—$8,000
# of Restaurants 185 276 353 204 34
Total # of Restaurants $1,052 $1,052 $1,052 $1,052 $1,052
% of Franchise Restaurants 17.6% 26.2% 33.6% 19.4% 3.2%
Average Unit Weekly Sales Volume $20,007 $15,339 $12,519 $9,884 $7,328
Number and percentage exceeding average 71/38% 131/47% 174/42% 111/54% 21/62%
Median $19,235 $15,283 12,508 9,94 7,328
High $38,214 $16,941 $13,987 $10,996 $7,328
Low $17,017 $14,012 $11,024 $8,008 $5,367

2019 Weekly AUV / Franchisees Free-Standing w/Drive Thru Development. FYE December 29, 2019

$17,000+ $14,000—$17,000 $11,000—$14,000 $8,000—$11,000 $0—$8,000
# of Restaurants 8 7 5 3 0
Total # of Restaurants 23 23 23 23 0
% of Franchise Restaurants 34.8% 30.4% 21.7% 13.0% 0%
Average Unit Weekly Sales Volume $22,138 $15,044 $12,098 $9,255 $0
Number and percentage exceeding average 4/50% 5/71% 2/40% 2/67% 0/0%
Median $21,300 $14,915 $12,005 $9,088 $0
High $33,561 $15,895 $13,077 $9,947 $0
Low $18,242 $14,024 $11,309 $8,161 $0
firehousesub

2019 Weekly AUV / Franchisees End-Cap Strip w/Drive Thru Development. FYE December 29, 2019

$17,000+ $14,000—$17,000 $11,000—$14,000 $8,000—$11,000 $0—$8,000
# of Restaurants 16 6 10 1 1
Total # of Restaurants 34 34 34 34 34
% of Franchise Restaurants 47.18% 17.6% 29.4% 2.9% 2.9%
Average Unit Weekly Sales Volume $22,177 $15,400 $12,473 $9,646 $6,740
Number and percentage exceeding average 7/44% 3/50% 4/40% 0/0% 0/0%
Median $20,453 $15,458 $12,448 $9,646 $6,740
High $35,900 $16,675 $11,246 $9,646 $6,740
Low $17,040 $14,118 $11,246 $9,646 $6,740
tutoring club

2019 Average Sales: $730,711.54

Initial investment (midpoint) %Profit margin of median franchise sales Estimated Profits Time to recoup investments
$ 593,447 10% $ 73,071 8 years
15% $ 109,607 7 years
20% $ 146,142 5 years

2020 Weekly AUV / Franchisees Traditional Development. FYE December 27, 2020

  $17,000+ $14,000—$17,000 $11,000—$14,000$8,000—$11,000$0—$8,000
# of Restaurants21226130721943
Total # of Restaurants$1,042$1,042$1,042$1,042$1,042
% of Franchise Restaurants20.3%25.0%29.4%21.0%4.1%
Average Unit Weekly Sales Volume$20,066$15,261$12,542$9,799$6,966
Number and percentage exceeding average77/36%118/45%158/51%123/56%24/56%
Median$19,741$15,54912,787$9,999$7,221
High$42,690$16,972$13,999$10,999$7,977
Low$17,039$14,014$11,019$8,001$4,961
 
tutoring club

2020 Weekly AUV / Franchisees Free-Standing w/Drive Thru Development. FYE December 27, 2020

$17,000+ $14,000—$17,000 $11,000—$14,000 $8,000—$11,000 $0—$8,000
# of Restaurants 12 4 6 1 1
Total # of Restaurants 24 24 24 24 24
% of Franchise Restaurants 50.0% 16.6% 25.0% 4.1% 4.1%
Average Unit Weekly Sales Volume $24,231 $15,337 $12,890 $10,848 $6,515
Number and percentage exceeding average 5/42% 2/50% 4/67% 0/0% 0/0%
Median $22,660 $15,609 $13,227 $10,848 $6,515
High $42,289 $16,348 $13,702 $10,848 $6,515
Low $17,163 $14,172 $11,901 $10,848 $6,515
firehousesubs3

2019 Weekly AUV / Franchisees End-Cap Strip w/Drive Thru Development. FYE December 27, 2020

$17,000+ $14,000—$17,000 $11,000—$14,000 $8,000—$11,000 $0—$8,000
# of Restaurants 22 7 10 0 0
Total # of Restaurants 39 39 39 39 39
% of Franchise Restaurants 56.4% 18.0% 25.6% 0% 0%
Average Unit Weekly Sales Volume $24,325 $15,872 $12,681 $0 $0
Number and percentage exceeding average 9/40.9% 4/57% 5/50% 0/0% 0/0%
Median $22,414 $16,672 $12,846 $0 $0
High $52,691 $16,975 $13,714 $0 $0
Low $17,013 $14,218 $11,061 $0 $0

2019 Average Sales: $739,072.75

Initial investment (midpoint) %Profit margin of median franchise sales Estimated Profits Time to recoup investments
$ 593,447 10% $ 73,907 8 years
15% $ 110,861 5 years
20% $ 147,815 4 years

Is the Company Franchise Profit Worth the Franchise Cost?

When Firehouse Subs owners sell their franchise based on the median valuation multiple for the industry of 0.31 and the average sales total from 2019 and 2020 of $734,892, the franchise would sell for $227,817. This is only about 38% of the midpoint investment of $593,447

However, owners of multiple Firehouse Subs franchises are able to sell them at a profit. Owners of 7 Firehouse Sub franchises receiving $5,144,245 can sell their franchises at a multiple of 0.86 for $4,424,050. This is greater than their initial investment amount of $4,154,129. So, the more Firehouse Subs franchises you invest in, the greater the opportunity for profit.

firehousesubs2

Firehouse of Americas Income Statement:

Firehouse of America, LLC. Statements of Income

(in thousands) Years Ended in December,
2020 2019
Revenues:
Royalty Fees $43,007,886 47,678,756
Franchise fees $1,371,750 $2,800,750
Area representative fees $421,403 $436,960
Other fees $3,949,688 $3,531,437
Total revenues $48,750,727 $54,447,903
Costs and expenses:
Royalty expense $18,196,469 $20,502,344
Franchise fee expense $368,188 $735,251
License fee expense $11,200,010 $12,725,119
Employee wages and benefits $8,884,021 $9,439,277
Telephone and utilities expense $49,891 $67,499
Travel and entertainment expense $266,533 $651,537
Marketing expenses $404,216 $736,598
Occupancy expense $1,697,371 $1,702,801
Area franchise development expense $56,250 $276,250
Professional fee expense $1,953,457 $1,907,242
Depreciation and amortization $248,626 $236,711
Other operating expenses $1,536,716 $1,976,707
Total costs and expenses $44,861,748 $50,957,336
Operating income $3,888,979 $3,490,567
Other income (expense) $23 $(152,276)
Net income $3,889,002 $3,338,291
Income Statement Key Insights:

Firehouse Subs has been a profitable business for the franchisor Firehouse of America, with profit margins of 6% and 8% in 2019 and 2020, respectively. They were able to increase profitability from 2019 to 2020 in large part because they were able to cut costs by 12%

How Many Firehouse Subs Units Have Opened and Closed?

Over the last three years, Firehouse Subs has been growing at an average of 21 franchises a year. One franchise closed in 2020, but that is not surprising in a year that many restaurants across the country were forced to close due to the pandemic. 

Units Opened and Closed from 2018 to 2020

Outlet type Year Outlets at the Start of the Year Outlets at the End of the Year Net Change
Franchised 2018 1,051 1,093 +42
2019 1,093 1,115 +22
2020 1,115 1,114 -1
Company-Owned 2018 37 37 0
2019 37 38 +1
2020 38 38 0
Total Outlets 2018 1,088 1,130 +42
2019 1,130 1,153 +23
2020 1,153 1,152 -1

Conclusion

Firehouse Subs has seen franchise unit increases over the last three years, and average franchise revenues have increased as well. However, there are high initial costs of opening a franchise, and based on the industry multiple, it will be difficult to sell the franchise at a profit. You are more likely to make a profit if you invest in several Firehouse Subs franchises instead of just one. 

While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in Food and Beverage Industry.

Speak to a franchise specialist today.

Discover which franchise is best for you.

Speak to a franchise specialist today

Visit Franchise Profiles mentioned

See more profiles

Access to unbiased franchise data.

Easy to access franchise data for everyone from first time franchise buyers to institutional investors buying whole franchise systems to everyone in between.

Submit
Feedback