Firehouse Subs Franchise Cost Profit Failure Rate

Firehouse Subs franchise is an American fast casual sub restaurant franchise chain that was founded in 1994 by two firefighters in Jacksonville, Florida. The eatery is renowned for its dedication to using only the freshest ingredients and specializes in serving hot subs made with premium meats, cheeses, and sauces. Along with serving up delectable food, Firehouse Subs is dedicated to giving back to the community through its charitable arm, the Firehouse Subs Public Safety Foundation, which supports first responders and public safety organizations by funding projects, providing tools, and offering educational opportunities. Firehouse Sub, which has more than 1,200 franchise locations globally, is a well-liked option for anyone looking for a great and satisfying meal.

Fast casual restaurants are predicted to develop quickly and reach a market value of $63.8 billion by 2026, according to a recent analysis. Consumers looking for high-quality, practical, and economical meals are what have made quick casual dining so popular.

How much does a Firehouse Subs franchise cost?

The initial investment required to initiate the operation of a Firehouse Subs can vary based on the features of the restaurant location. To provide a summary:

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

The franchise investment spans from $189,574 to $997,320.

 

How much does it cost to franchise a Firehouse Subs in the United States?

The price of a Firehouse Subs franchise varies and is based on several elements, including location, restaurant size, and real estate costs the anticipated initial cost for a typical sub restaurant ranges from $189,574 to $997,320 as per the latest Firehouse Sub franchise disclosure statement.

Cost of Firehouse Subs Franchise
Firehouse Subs Franchise Fee	$20,000
Firehouse Sub Franchise Cost	$189,574 to $997,320
Royalty Fee	6%
Advertising Fee	4%
Term of Agreement	Term and conditions
Is franchise term renewable?	Yes,
Renewable Franchise Fees	50% of Initial Franchise fees

 

How much do Firehouse Subs franchise owners make?

The 2019 Franchise Disclosure Document for Firehouse Sub states that the typical franchise owner makes an average revenue (AUV) was $720,712. However, because individual results can vary, this amount is not a guarantee of a franchisee’s revenues.

A precise average income or salary for a Firehouse Sub franchise owner is difficult to estimate because it depends on a number of variables, including location, competition, and individual success.

What is Firehouse Subs franchise profit?

The exact profit a Firehouse Sub franchise profit salary may make will rely on a number of variables, including location, competition, operating and marketing costs, and employee performance.

I shall estimate the average Firehouse Subs franchise profit and years to recoup the investment (ROI).

AUV	Estimated Annual Profit (12.5%)	Estimated Annual Profit (15%)	Estimated Annual Profit (18%)
$ 720,712	$ 90,089	$ 108,106	$ 129,728
Recoup $597,000	6.62 years	5.5 years	4.6 years

Is the Firehouse Sub Franchise Owner Profit and Salary Worth the Cost?

Whether the Firehouse Subs franchise profit justifies the cost is a matter of opinion and will vary according to each person’s unique situation and objectives.

The estimated Firehouse Subs franchise average profit income is in the range of $ 90,000 to $ 130,000 and it will take 4.5 to 6.5 years to recoup the investment.

On the one hand, having a Firehouse Subs franchise offers the chance for significant sales and profitability opportunities, as well as the advantages of working with a reputable and well-known brand.

Firehouse Subs Franchise Requirements

The following criteria must be met to open a Firehouse Sub franchise.

1. Financial requirements

Firehouse Subs requires franchisees to have a net worth of at least $500,000 and liquid assets of at least $150,000.

2. Experience

The company prefers franchisees with prior business experience, but it is not required.

3. Training

All franchisees of Firehouse Subs receive thorough training, which they must complete before opening a location

4. Real estate

Franchisees are required to choose an appropriate location for their eatery and adhere to the company’s real estate standards.

5. Ongoing fees

Franchisees must continue to pay the corporation ongoing royalties, marketing costs, and an initial franchise fee.

What are Firehouse Subs franchise owner reviews?

Reviews of the Firehouse Sub franchise are mixed, with some franchisees expressing delight and others complaining.

Positive evaluations frequently refer to Firehouse Subs’ assistance and training, their well-known brand and reputation, and their successful business model. Additionally, some franchisees report profitable and great sales.

Firehouse Sub Franchise Rankings

Firehouse Sub has been included on many occasions in Entrepreneur magazine’s annual Franchise 500 list. The rating is determined by several variables, including brand power, growth rate, and financial soundness and stability.

Firehouse Subs has been ranked among the top 200 franchises on the Franchise Times Top 200+ list, which assesses businesses based on their global sales.

Firehouse Sub has been included in the Franchise Gator’s Top 100 list, which honors the top franchise prospects in terms of price, scope, and expansion.

 

What are Firehouse Subs?

A fast-casual restaurant chain called Firehouse Subs specializes in hot subs. The franchise was started in 1994 in Jacksonville, Florida, and has since grown to include sites throughout the country and beyond. The Firehouse Subs Public Safety Foundation, the company’s charitable arm, is renowned for its high-quality ingredients, especially its fire-roasted meats and cheeses, as well as its dedication to giving back to the community. 

Is Firehouse Subs a Franchise Opportunity?

Yes, there is a franchise possibility for Firehouse Sub. For anyone interested in owning and running their own Firehouse Subs restaurant, the firm provides franchising opportunities. You will have access to the company’s well-known brand, marketing assistance, training courses, and tried-and-true business strategy as a franchisee.

Firehouse Subs Franchise Success and Failure Rate

The below table will highlight the Firehouse Sub franchise success and failure rate for the last 3 years. This will supplement your decision-making process.

Year	Format	Start	End	Change
2019	Franchise Owned	1109	1104	+5
Company Owned	38	37	+1
2020	Franchise Owned	1104	1118	+14
Company Owned	37	39	+2
2021	Franchise Owned	1118	1131	+13
Company Owned	39	39	0

It is evident that the Firehouse Sub franchises didn’t observe any negative growth during the pandemic and franchises did well.

How to Open and Start a Firehouse Subs Franchise?

Opening a Firehouse Subs franchise involves several key steps. Here’s a general overview of the process:

1. Research and Initial Inquiry: Begin by conducting thorough research on Firehouse Subs and its franchise opportunities. Visit their official website to gather information about their business model, requirements, and support offered to franchisees. If you’re interested, submit an initial inquiry expressing your interest in opening a Firehouse Subs franchise.

2. Evaluation and Prequalification: Firehouse Subs will review your initial inquiry and evaluate your qualifications as a potential franchisee. They will assess factors such as your financial capabilities, business experience, and overall fit with the brand. If you meet their criteria, you’ll be invited to complete a formal application.

3. Franchise Application and Disclosure Document: Complete the franchise application provided by Firehouse Subs. You’ll also receive a Franchise Disclosure Document (FDD), which contains essential details about the franchise, including the initial investment, ongoing fees, contractual obligations, and other important information. Carefully review the FDD, seek professional advice if needed, and return the completed application.

4. Financial Review and Approval: Firehouse Subs will conduct a thorough review of your financial info, including your net worth, liquidity, and creditworthiness. They may also request additional documentation, such as tax returns and bank statements. If you meet their financial requirements, you’ll be approved as a franchisee.

5. Franchise Agreement and Training: Once approved, you’ll receive the Franchise Agreement from Firehouse Subs. Carefully review the agreement, seek legal counsel, if necessary, and sign the document. You’ll then attend their training program, which covers various aspects of operating a Firehouse Sub franchise, including food preparation, customer service, inventory management, and marketing.

6. Location Selection and Build-out: Work with the Firehouse Sub real estate team to identify and secure a suitable location for your franchise. They will guide site selection criteria, lease negotiations, and construction or renovation requirements. Ensure that your chosen location meets the brand’s standards and local regulations.

7. Equipment and Inventory Procurement: With the guidance of Firehouse Subs, order the necessary equipment, furniture, and fixtures for your restaurant. They have preferred vendors and suppliers that franchisees are typically required to use. Additionally, set up relationships with approved food and beverage distributors to ensure a consistent supply of quality ingredients.

8. Grand Opening and Ongoing Support: Before your grand opening, Firehouse Subs will assist in marketing and promoting your new franchise. They have established marketing programs and materials to support franchisees. After the launch, ongoing support will be available, including operational guidance, product development, marketing campaigns, and regular communication with the franchise support team.

It’s important to note that the specific details and requirements may vary, so it’s essential to carefully review the information provided by Firehouse Subs and consult with their franchise representatives throughout the process. Opening a franchise involves a significant financial investment and commitment, so conducting thorough research and seeking professional advice are crucial steps in making an informed decision.

Facts That Nobody Told You About Firehouse Subs

Here are some interesting facts about Firehouse Subs that you may not have known

1. Firehouse Subs was founded by two firefighters

Firehouse Subs was founded in 1994 by brothers Chris and Robin Sorenson, both of whom are former firefighters.

2. The business is renowned for its dedication to public safety

Through its charitable arm, the Firehouse Subs Public Safety Foundation, it supports first responders and groups dedicated to public safety by giving them funds, supplies, and training.

3. Firehouse Subs uses unique bread-steaming technology

The restaurant business Firehouse Sandwiches employs a proprietary bread-steaming technique that guarantees the subs are warm and that the ingredients are spread evenly.

4. The business is concerned about the environment

Firehouse Subs has introduced many green measures, including using eco-friendly packaging, energy-saving machinery, and recycled building materials in its restaurants.

5. There are several options on the menu

Firehouse Subs provides salads, sides, and catering choices in addition to its hot subs.

Firehouse Subs Franchise Review and Information
Industry Type	Food Franchise Opportunities
Sub Category	Sandwiches Franchise Opportunities
Year Established	1994
Company Name	Firehouse Subs
Founder/Management Head	Robin Sorensen, Chris Sorensen
Franchising Started	1994
Franchise Expansion Plan
Number of Units	1,210
Number of Franchise Units	1,280 (2023)
Social Media Handles	Facebook
	Twitter
	Youtube
	Instagram
Company Office location	Jacksonville, Florida, United States

 Firehouse Subs Training to Franchises

The training program includes the following components

1. Pre-opening instruction

This includes in-person instruction at a Firehouse Subs restaurant close by as well as classroom and practical instruction at the business’ training center.

2. Continuous training and support

Firehouse Subs offers its franchisees continuous training and support through recurring webinars, workshops, and on-site visits.

3. Marketing support

Support with local shop marketing, national and local advertising campaigns, and promotional materials are all examples of the marketing support the corporation offers to its franchisees.

Firehouse Subs Operations to Franchises

Firehouse Subs provides ongoing support and guidance to its franchisees to help them run their businesses successfully. This support includes:

1. Site selection and development

The business assists franchisees with the process of choosing a suitable location for the restaurant as well as with design and construction.

2. Marketing and advertising

Promotional materials, national and local campaigns, and assistance with local shop marketing are all things that Firehouse Subs offers franchisees in the way of marketing and advertising support.

3. Menu development

The business offers assistance with menu development, including dish formulation and menu pricing.

4. Chain of distribution management

Firehouse Subs offers a centralized purchasing scheme that gives franchisees access to premium supplies and ingredients at reasonable costs.

5. Technology

The business gives franchisees access to point-of-sale systems and other technological tools that support restaurant operations.

How is Firehouse Subs Territory Granted to Franchises

Franchises are awarded under a territorial structure at Firehouse Subs. According to this concept, each franchisee is given the sole authority to run a Firehouse Subs restaurant within a predetermined region.

What is the Franchise Term of Agreement and Renewal?

Franchisees have the option to extend their franchise agreement after the initial term, provided certain requirements are met.

A review of the franchisee’s performance during the original term and their adherence to the franchisor’s standards and regulations are often part of the renewal process. To renew their franchise agreement, franchisees might also need to perform some renovations or upgrades to their businesses.

Does Firehouse Subs provide Financial Funding to Franchises?

Firehouse Subs does not directly provide financial assistance to its franchisees. However, the company may work with third-party lenders to help franchisees secure financing for the start-up costs of their restaurants.

Pros & Cons of Owning a Firehouse Sub Franchise

Pros 

1. Established brand

In the fast-casual restaurant sector, Firehouse Subs is a well-known and well-established brand. Compared to launching a new firm from scratch, this can help franchisees acquire clients and earn cash more quickly.

2. Established business strategy

Firehouse Subs has a solid history as a fast-casual restaurant chain and a proven business strategy. This can give franchisees a success roadmap and enable them to steer clear of frequent problems that new business owners experience.

3. Support and training

Firehouse Subs offers its franchisees thorough support and training, including advice on site selection, marketing, and operations. 

4. Support for advertising and marketing

Firehouse Subs offers its franchisees centralized support for advertising and marketing.

Cons 

1. Start-up expenses

The start-up expenditures for a Firehouse Sub franchise can be high, ranging from $350,000 to $800,000 or more. Some people may find it challenging as a result to obtain finance and open their own restaurant.

2. Ongoing fees

Franchisees are also liable for ongoing fees, such as royalty fees, advertising fees, and other expenses related to running a restaurant, in addition to the initial investment.

3. Limited control

Restaurants must be run by franchisees in accordance with the franchisor’s policies and standards. This may restrict the franchisee’s autonomy and capacity to decide the course of their company.

4. Competition

Due to the industry’s high level of rivalry, franchisees may experience fierce competition from other well-known companies and independent eateries.

 

Franchise Deck Analysis and Overview

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.

You can recoup your franchise cost within 6 years, which is decent compared to Firehouse Sub counterparts.

 

You can review the franchise facts and profit of Firehouse Sub and its Competitors.

Competition Analysis of Firehouse Subs
Brand	Cost to Franchise	Franchise Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Firehouse Subs	$189,574 to $997,320	$ 20,000	6%	$90,000 to $ 130,000	4-5 years	4.0/5.0
Subway Franchise	$229,050 – $522,300	$15,000	8%	$45,000 to $90,000	7.3 years	4.5/5.0
Jimmy John’s Franchise	$355,900-$671,400	$30,000-$35,000	6%	$45,000 to $110,000	6-7 years	4.0/5.0
Jersey Mike’s Franchise	$144,668-$786,233	$ 18,500	6.5%	$75,000 to $90,000	7-8 years	3.6/5.0
Jason’s Deli Franchise	$1,126,105 – $1,576,444	$17,500	6%	$105,000 to $140,000	5-6 years	3.9/5.0
McAlister’s Deli Franchise	$401,655 and $1,459,265	$35,000	5%	$45,000 to $140,000	4-6 years	3.5/5.0

The Franchise Deck rating for the Firehouse Sub franchise is 4.0/5.0.

Conclusion: Should Buy the FireHouse Subs franchise for sale?

Well, investing that much in a Firehouse Subs franchise can be worthwhile because the sales are sufficient and the investment pays off, but the profit margin is not that large. There are plenty of reasons to consider buying a Firehouse Sub Franchise.

Entrepreneurs who want to open a franchise in the sandwiches  franchise opportunities categories can look at 

1. Texas Roadhouse Franchise
2. Wendy’s Franchise
3. Jimmy John’s franchise
4. Jersey’s Mike Subs Franchise
5. Arby’s Franchise
6. Charleys Philly Steaks Franchise 
7. Subway Franchise
8.  Jason’s Deli Franchise
9. McAlister’s Deli Franchise
10. Savvy Sliders Franchise

Frequently Asked Questions (FAQs)

1. Is the Firehouse Subs a good franchise?

The only thing that distinguishes the Firehouse Sub franchise from other sandwich chains is the motif of firemen. According to research, a Firehouse Sub franchise owner can earn $75,000 per year, just below the minimum wage.

2. Can you make money owning a Firehouse Subs?

The franchisee may make money and be successful by owning a Firehouse Subs location. Success, however, is not guaranteed and depends on many variables, including the franchisee’s capacity to manage and run the business effectively, market demand, rivalry, and the regional economy.

3. Is Firehouse Subs a franchise?

Yes, Firehouse Sub is a franchise. A fast-casual restaurant chain called Firehouse Subs serves salads and sub sandwiches. Since its establishment in 1994, the business has expanded to over 1,200 outlets both domestically and abroad.

4. How much is a Firehouse Subs franchise?

The Firehouse Sub franchise website states that the expected startup cost for a new franchise can range from $189,574 to $997,320. This covers the customary $20,000 franchise fee in addition to additional expenses like real estate, building and remodeling, tools, supplies, and operating capital.

5. How does the Firehouse Sub franchise make money?

Firehouse Subs or its authorized suppliers provide the franchisees with food and supplies, which they then buy and resell to customers at a markup. Regular continuing royalty and advertising expenses that franchisees must pay to the franchisor are often included in the franchise agreement with Firehouse Sub.