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Firehouse Subs Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Firehouse Subs Franchise?
To open a Firehouse Subs franchise, you should prepare for an initial investment ranging from $343,245 to $1,344,200. This investment includes a franchise fee of $20,000, along with additional costs for equipment, signage, and leasehold improvements. To qualify, you’ll need a cash reserve of $10,000 to $110,000 and a net worth between $500,000 and $1,500,000. Understanding these financial commitments is crucial for aspiring franchisees looking to join this popular sub sandwich chain.
What Are the Ongoing Fees for Firehouse Subs Franchisees?
Firehouse Subs franchisees are required to pay a royalty fee of 6% of their gross sales, along with a marketing fee of 5%. These ongoing fees help fund corporate support, marketing initiatives, and brand development, ensuring that franchisees benefit from a strong, recognizable brand. It’s important to factor these costs into your financial planning as they will impact your overall profitability.
What Is the Average Revenue Potential for a Firehouse Subs Unit?
The average annual revenue for a Firehouse Subs unit is approximately $1,030,453, with a median revenue of $1,074,185. Units can see a wide range of performance, with the lowest annual revenue reported at $397,858 and the highest at $2,712,961. This revenue potential highlights the opportunity for franchisees to achieve significant financial success, particularly in well-chosen locations with strong market demand.
What Is the Breakeven and Payback Timeline for Firehouse Subs Franchisees?
Firehouse Subs franchisees can expect to reach their breakeven point within 12 months of opening. The investment payback period is typically around 25 months. These timelines are critical for potential franchisees to consider, as they reflect the speed at which they can recoup their initial investment and begin generating profit, making it an attractive opportunity for those looking to enter the fast-casual dining sector.
Firehouse Subs Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Firehouse Subs Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 1154 | 1164 | 1188 |
| Net Change YoY | 10 | 24 | |
| Franchised Units | 1115 | 1126 | 1149 |
| Net Change YoY | 11 | 23 | |
| Corporate Units | 39 | 38 | 39 |
| Net Change YoY | -1 | 1 |
Company Background
Firehouse Subs is a fast-casual restaurant chain founded in 1994 by former firefighters Robin and Chris Sorensen in Jacksonville, Florida. Known for its hearty, made-to-order sub sandwiches, the brand emphasizes quality ingredients and a commitment to community service. With over 1,100 locations across the United States, Firehouse Subs has established itself as a leader in the sandwich segment, combining a unique firefighting theme with a focus on customer satisfaction and philanthropy through its Firehouse Subs Public Safety Foundation.
Franchise Opportunity
Investing in a Firehouse Subs franchise offers aspiring entrepreneurs a chance to join a well-recognized brand with a proven business model. With a relatively low initial investment ranging from $343,245 to $1,344,200, franchisees benefit from comprehensive training and support, allowing them to tap into the growing fast-casual dining market. The franchise's strong community ties and commitment to quality make it an attractive option for those looking to enter the food service industry.
Initial Investment and Fees
The initial investment to open a Firehouse Subs franchise includes a franchise fee of $20,000, along with ongoing royalty and marketing fees of 6% and 5% of gross sales, respectively. Franchisees are required to have a cash reserve between $10,000 and $110,000 and a net worth of $500,000 to $1,500,000. This financial structure supports franchisees in establishing their business while ensuring they have the resources to succeed.
Financial Performance
Firehouse Subs franchises have demonstrated strong financial performance, with an average annual revenue of $1,030,453 per unit. The range of annual revenues varies significantly, with the lowest at $397,858 and the highest reaching $2,712,961. The business model boasts a breakeven time of approximately 12 months and an investment payback period of around 25 months, making it a potentially lucrative investment for franchisees.
Operational Insights
Franchisees can expect average operating expenses to be around $603,245 annually, which includes labor costs of $281,129, occupancy costs of $73,540, and other expenses totaling $250,830. With a gross profit margin of 69.4%, this operational structure allows franchisees to manage costs effectively while maximizing profitability, contributing to the overall success of their Firehouse Subs location.
Growth and Expansion
Firehouse Subs has experienced steady growth, increasing its number of franchised units from 1,115 in 2021 to 1,149 in 2023. This growth reflects the brand's successful expansion strategy and ongoing demand for its unique offerings. The combination of corporate and franchise units positions Firehouse Subs for continued success, making it an appealing option for investors looking to enter a thriving franchise system.
Frequently Asked Questions
The initial investment for a Firehouse Subs franchise ranges from $343,245 to $1,344,200. This includes the franchise fee of $20,000 and various startup costs such as equipment, leasehold improvements, and initial inventory.