Firehouse Subs Franchise Analysis 2026

Investment & Fee Data

Investment Overview

Franchise Fee$20K

Total Investment$293K – $1.0M

Royalty Rate6.0%

Ad/Marketing Fund3.5%

Total Fee Burden9.5%

System Size & Growth

US Locations1,220

Unit Growth Rate+3.0%

Founded1994

Franchising Since1995

FDD Item 19Yes ✓

🔒 Premium Data Available

Avg Unit Volume (AUV)$1.1M

Owner Earnings$95K

SBA Default RateN/A

5-Year Survival92%

Unlock All Data →

💡 What This Means For You

The combined fee burden of 9.5% is within the industry average of 8-10%. Beyond the listed investment, expect approximately $177K in hidden costs (working capital, legal, insurance, tech fees) — bringing your realistic total closer to $825K.

Financial Performance & Risk Analysis

Financial Performance

Avg Unit Volume (AUV)$1.1M

Net Profit Margin12%

Est. Owner Earnings$95K

Breakeven18-24 months

Payback Period5-7 years

Capital Requirements & Operations

Liquid Capital Required$200K

Net Worth Required$500K

Staff Required12-20

Training8 weeks

TerritoryDesignated area

Multi-Unit RequiredNo

Term Length20 years

Risk & SBA Safety Data

SBA Default RateNo Data

5-Year Survival92%

Renewal Fee$5,000

Transfer Fee$5,000

💡 Financial Analysis

A revenue-to-investment ratio of 1.6x is solid and in line with industry norms. At estimated owner earnings of $95K/year, the simple payback period is approximately 6.8 years.

Due Diligence Deep Dive

The data franchise brokers don't show you — real costs, owner lifestyle, franchisee satisfaction, exit options, and FDD transparency.

💰 True Cost of Ownership

Working Capital (6 mo)$100K

Legal & Accounting$15K

Insurance (Annual)$12K

Tech/Software (Monthly)$800/mo

Lease Deposit Est.$30K

Grand Opening$15K

Total Hidden Costs$177K

👤 Owner Reality Check

Hours Per Week50-65

Absentee Owner Friendly?No ✗

Manager-Run Possible?Yes ✓

Seasonal VariationLow

Labor Cost (% of Revenue)31%

Owner-managed operations. Expect to invest 50-65 hours per week managing day-to-day activities, staff oversight, customer acquisition, and brand compliance. Focus on operational efficiency and franchisee standards adherence.

📊 Franchisee Health

Satisfaction Score75/100 (Good)

Annual Turnover Rate4.5%

Litigation Count (Item 3)25 cases

5-Year Closure Rate3%

Avg Franchisee Tenure10 years

Franchisee AssociationYes ✓

🚪 Exit Strategy & Resale

Resale Value Multiple2.5-3.5xx earnings

Transfer RestrictionsFranchisor approval required; right of first refusal

Non-Compete Period2 years

Non-Compete Radius10 miles

Avg Time to Sell6-12 months

Exit DifficultyModerate

📋 FDD Transparency Report

Item 19 QualityComprehensive

Item 19 Includes:

✓ Gross Revenue by quartile

✓ Operating costs breakdown

✓ Food costs

Territory ProtectionLimited

Territory scope varies by location; limited exclusivity provided

Required Suppliers?Yes

Supplier Markup RiskLow

Renewal Terms20-year term; renewal terms subject to brand standards compliance

🚩 FDD Red Flags & Green Flags

⚠️ Watch Out For:

High combined fee burden (>8%) (9.5% total)Litigation count: 25 cases

✅ Positive Signals:

Item 19 comprehensive financial disclosureEstablished system with strong unit baseTrack record data available

💡 Due Diligence Verdict

The 25 active litigation cases (FDD Item 3) is a significant red flag — this is well above average and suggests ongoing conflict between the franchisor and its franchisees.

AI Disruption Risk Assessment

🛡️ AI Disruption Risk: Low

25/100

AI-Proof Disruption Timeline: 5-10 years High Risk

Low risk. Firehouse Subs competes on premium quality and brand mission. While sandwich assembly could theoretically be automated, the franchise depends on real estate and customer loyalty, not labor efficiency.

AI Threats:

AI schedulingSandwich assembly competition from larger chains

Defensive Moat:

Premium positioning, real estate, charitable mission and brand loyalty, customer relationships.

🤖

AI Risk Analysis

See how AI will impact Firehouse Subs over the next 5-10 years — threats, moats, and disruption timeline.

Unlock Full Analysis →

Territory Saturation Analysis

0.36

Units per 100K pop.

0.01x

Saturation Index

vs. QSR avg (27.06/100K)

States with Presence

Low Saturation

Firehouse Subs has significant whitespace opportunity relative to its category.

Geographic Distribution

No units

High density

Most Saturated States

State	Units	Population	Per 100K
Vermont	27	645,000	4.19
North Dakota	24	781,000	3.07
Alaska	20	733,000	2.73
Delaware	25	1,031,000	2.42
South Dakota	21	887,000	2.37

Least Saturated States

State	Units	Population	Per 100K
California	50	39,029,000	0.13
Texas	53	30,503,000	0.17
Georgia	20	11,370,000	0.18
North Carolina	21	10,849,000	0.19
New York	45	18,777,000	0.24

Growth Opportunity States

High-population states where Firehouse Subs has minimal or no presence — potential expansion territories.

Alabama Idaho New Hampshire Washington DC Wyoming

Investment Thesis

Firehouse Subs carries a HOLD signal with a FutureScore of 68/100. A solid mid-tier QSR sandwich franchise with a differentiated brand identity. The firefighter heritage creates genuine community connection. Moderate unit economics but reliable system. Owned by Restaurant Brands International (Burger King parent).

Ideal Investor Profile: Community-minded franchise investor seeking established QSR

Strengths

Strong brand with firefighter heritage1,220+ units$20K franchise fee is accessibleCommunity-driven brand identity

Risk Factors

9.5% total feesSandwich segment competitiveRestaurant Brands International ownership

Firehouse Subs

What is Firehouse Subs?