Firehouse Subs Franchise Cost: Investment & Revenue Data

A Firehouse Subs franchise costs $405K – $876K to open in 2026, with a $20,000 franchise fee and a 6.0% ongoing royalty. Average gross sales are approximately $974K (outlet subset) (gross sales, not profit). The SBA loan data is mixed: across 638 SBA 7(a) loans, Firehouse Subs carries an 11.1% charge-off rate — higher than sandwich-category leaders like Jersey Mike's — yet the brand still earns a FranchiseVerdict Verdict Score of 84 out of 100 (higher is better), an A-rated verdict.

The RBI acquisition changed the game

In late 2021, Restaurant Brands International — the parent company behind Burger King, Tim Hortons, and Popeyes — acquired Firehouse Subs for approximately $1 billion. That acquisition shifted the brand from founder-led to corporate conglomerate ownership, and the effects are still rippling through the franchise system.

RBI's playbook is well established: acquire a brand, push aggressive unit growth, and extract value through supply chain consolidation. Franchisees across other RBI brands have publicly complained about margin compression, mandatory remodels, and a focus on corporate economics over operator profitability. Whether Firehouse Subs franchisees face similar pressures remains to be seen, but the corporate DNA is now in place. If you're evaluating this brand, talk to current owners about how things have changed since the acquisition. Use our franchisee contacts tool to reach verified operators.

SBA loan performance — the red flag

Firehouse Subs has 638 SBA 7(a) loans on file with an 11.1% charge-off rate. That means roughly 1 in 9 Firehouse Subs franchise loans ended in default.

For context, here is how that compares to direct competitors in the sandwich segment:

Firehouse Subs has the weakest loan performance of the three. It's significantly worse than Jersey Mike's (which has built a reputation for strong unit economics and careful expansion), and it also trails Subway, whose 6.8% charge-off rate comes in below Firehouse's despite Subway's much larger loan book. The 638-loan sample is large enough to be statistically meaningful, so this isn't a small-sample anomaly. Explore the full SBA data on our SBA explorer.

Investment breakdown

The FDD Item 7 discloses a total initial investment range of $405,350 to $875,950. The wide range depends on whether you're building a new location, converting an existing space, or opening a non-traditional unit (like an airport or university location).

Traditional restaurant build-outs sit toward the upper part of the range. Non-traditional locations at the low end can be attractive for reducing capital risk, but they typically generate lower revenue because of limited hours or captive-audience pricing constraints.

Revenue vs. investment — the math problem

At roughly $974K (outlet subset) in average gross sales, Firehouse Subs is a mid-tier performer for the sandwich category. Gross sales are not profit: the 6.0% royalty ($58K) and 5.0% advertising contribution ($49K) come off the top, then food, labor, and occupancy. The FDD does not disclose what is left for the owner, so take-home income is yours to model.

Consider the comparison: Jersey Mike's discloses average gross sales of $1.4M on an investment of $436K – $1.2M. The numbers tell you why Jersey Mike's has a 4.4% SBA charge-off rate and Firehouse Subs sits at 11.1%. Tighter margins leave less room for error, and any soft month can cascade into loan distress.

Ongoing fees

• Royalty fee: 6.0% of gross sales. Jersey Mike's charges 6.5% and Subway charges 8.0%, making the competitive range fairly tight.
• Advertising fund: 5.0% of gross sales. Contributions go toward national advertising and local cooperative marketing.
• Technology fees: MIS and digital technology fees, charged per restaurant on top of the royalty.

At $974K revenue, the combined royalty and advertising burden is roughly $107K per year — 11.0% of gross sales flowing back to the franchisor before you cover any operating expenses.

Who should consider Firehouse Subs

Firehouse Subs works best for operators who can hit these conditions: a strong real estate location with high lunch traffic, multi-unit plans to spread fixed overhead, and enough capital reserves to survive the first 18 months. The brand's firefighter-themed identity and community involvement programs (the Firehouse Subs Public Safety Foundation funds equipment for first responders) create genuine brand loyalty. The hot sub format differentiates it from cold-sub competitors like Subway and Jimmy John's.

But the 11.1% SBA charge-off rate means you need to be realistic about the risk. About 1 in 9 operators on government-backed loans could not repay. That's not catastrophic, but it's elevated enough to warrant extra scrutiny during due diligence. Read the FDD carefully, visit multiple locations, and call current franchisees before committing. For more on evaluating franchise risk, see our franchise failure rate analysis.

Should you buy a Firehouse Subs franchise?

Firehouse Subs is a known brand with a loyal customer base, and the$405K – $876K investment range makes it accessible compared to larger QSR concepts. But the 11.1% SBA charge-off rate, the relatively modest $974K average gross sales, and the uncertainty around RBI's corporate ownership all argue for caution. If you're set on the sandwich category, compare Firehouse side-by-side with Jersey Mike's on our comparison tool. The data strongly favors Jersey Mike's on loan performance, and you owe it to yourself to understand why.

Related franchise research

Continue your research with our Jersey Mike's franchise cost breakdown, Subway franchise analysis, and Burger King franchise cost guide.