Firehouse Subs franchise
A franchisee builds and operates a FIREHOUSE SUBS restaurant selling hot submarine-style sandwiches, typically a 1,200–2,000 sq ft leased in-line, end-cap or free-standing site, with or without a drive-thru.
Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Firehouse of America, LLC
- Document
- FDD 2026, issued 2026-03-25
- Item
- Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business
- Page
- PDF p. 62
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640423
The Managing Owner must devote full-time and best efforts to supervising the operation of your Restaurant
A franchisor-approved Managing Owner must hold at least a 10% legal or beneficial interest in the franchisee, or the right to at least 10% of the restaurant's operating profits, must complete initial training, must live within reasonable driving distance of the restaurant, and must devote full time and best efforts to supervising it. That person may not take on any other business or activity requiring substantial management responsibility. A hired manager without the required ownership stake is therefore not sufficient, though the Managing Owner supervises rather than necessarily working every shift.
What stands out
- Estimated initial investment $405,350–$875,950 for an in-line restaurant without a drive-thru, excluding real estate purchase; drive-thru formats run up to $1,577,750.
- Initial franchise fee is a flat $20,000; a $5,000 market introduction fee and the $1,200 annual MIS system fee are also payable to the franchisor before opening.
- Ongoing fees are 6% royalty plus a 5% System Fund contribution on Gross Sales, plus $150 per month and 1% of digital sales in digital technology fees.
5 more observations
- Item 19 reports 2025 average gross sales of $973,809 across 1,033 counter-service restaurants, and $1,054,318 and $1,123,608 for the two smaller drive-thru formats.
- Item 19 also discloses average restaurant-level EBITDA of $103,119 (10.0% of sales), but only from the 704 of 1,137 eligible restaurants that submitted complete P&L statements, and before depreciation, interest, taxes and any owner overhead.
- U.S. franchised outlets grew from 1,149 to 1,249 across 2023–2025 (182 openings, 79 exits); 105 new franchised openings are projected for the next fiscal year.
- No exclusive territory; protection is limited to a roughly 1-mile Trade Area that excludes non-traditional locations and other distribution channels.
- A Managing Owner with at least a 10% stake must work full time supervising the restaurant, and every 10%-or-greater owner must personally guarantee the agreements.
Things to verify
- Ask which format the franchisor expects for your site: the Item 19 averages and the Item 7 investment ranges differ substantially between counter-service and the two drive-thru builds.
- Ask why 433 of 1,137 eligible restaurants did not submit complete P&L statements, and whether the 704 that did are representative of the system.
- Real estate is excluded from every Item 7 total; obtain local rent, build-out and impact-fee quotes before relying on the stated ranges.
5 more questions
- Confirm whether the accelerated-market royalty reduction, the 2026-2028 DIP or the Veteran and First Responder DIP applies to you, and the repayment triggers if opening deadlines slip.
- Model the effect of paying 11% of Gross Sales in royalty and System Fund contributions against the disclosed cost ratios (COGS 30.5%, labour 26.3%, occupancy 7.6%).
- Read the franchise agreement for the geographic scope of the two-year post-term non-compete, which Item 17 does not quantify.
- Check the Development Agreement performance standards: failing to score in the top 50% of your peer category or receiving a 'D' or 'F' grade is listed as a non-curable default.
- Speak with franchisees on the Exhibit J1 and J2 lists, bearing in mind Item 20's statement that some have signed provisions restricting what they can say.
Category cost placeholders, not a forecast. Owner operation is required; a manager-pay deduction does not make this an absentee model. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A Firehouse Subs franchisee builds and runs a quick-service submarine sandwich restaurant, typically 1,200 to 2,000 square feet on a leased site, under Firehouse of America, LLC — a Jacksonville, Florida company that has franchised since December 2004 and is now an indirect subsidiary of Restaurant Brands International, alongside Burger King, Popeyes and Tim Hortons.
The 2026 FDD, issued March 25, 2026, puts the estimated initial investment for the least expensive format — an in-line restaurant without a drive-thru — at $405,350 to $875,950, excluding any purchase of land or a building. An end-cap with drive-thru runs $528,159 to $1,087,050 and a free-standing drive-thru $767,950 to $1,577,750. The initial franchise fee is a flat $20,000; two further amounts go to the franchisor before opening, a $5,000 market introduction fee and the $1,200 annual MIS system fee. Ongoing fees are 6% of Gross Sales in royalty plus a System Fund contribution currently at its 5% cap, along with a $150 per month digital technology fee plus 1% of digital sales. Item 12 states plainly that there is no exclusive territory; protection is limited to a roughly one-mile Trade Area that excludes non-traditional locations and other sales channels. No minimum liquidity or net worth requirement is disclosed in the reviewed source.
Item 19 is detailed but fragmented. For 2025 it reports average gross sales of $973,809 across 1,033 counter-service restaurants without a drive-thru, $1,054,318 across 35 free-standing drive-thru restaurants and $1,123,608 across 69 end-cap drive-thru restaurants, with the top quartile of counter-service units averaging $1,362,686 and the bottom quartile $645,319. It also discloses restaurant-level EBITDA averaging $103,119, or 10.0% of sales, but only for the 704 restaurants that submitted complete profit and loss statements out of 1,137 eligible. That EBITDA is before depreciation, interest, taxes, loan payments and any corporate overhead, so it is not the owner's profit. The FDD gives no single systemwide average, no data for company-owned restaurants, and none of the sales data is audited.
Item 20 shows steady expansion in the United States: franchised outlets rose from 1,149 at the start of 2023 to 1,249 at the end of 2025, a net gain of 100 on 182 openings against 79 exits, with 42 company-owned restaurants unchanged in 2025 and 105 new franchised openings projected for 2026. Exits picked up in 2025, with terminations rising from zero in each prior year to six and non-renewals from nine to fifteen. Transfers between franchisees were high at 72, 100 and 88 over the three years. On the legal side, Item 3 lists twelve pending matters and one concluded matter, none brought by franchisees and most involving the parent's other brands, though a trademark cancellation campaign and a website-tracking class action name the Firehouse Subs entity directly. Item 4 discloses no bankruptcy. A Managing Owner holding at least 10% of the business must devote full time to supervising the restaurant, all 10%-or-greater owners must personally guarantee the agreements, and disputes go to court in Duval County, Florida under Florida law with no arbitration clause.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 1149 → 1249 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $973,809 (disclosed) ÷ midpoint investment $640,650 = 1.52×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 83% of franchised units, clearly described (+1)
- Cost or profit data disclosed (+1)
- Franchisor Track Record
- Franchising 31 years (since 1995) · 1,291 outlets · Item 3: 13 matter(s) disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- Multi-unit growth runs through a Development Agreement granting a Development Area and a binding development schedule; the Development Area carries no territ… · Owner-operator required
- Operational Intensity
- Owner-operator required
Initial investment
FDD Items 5 and 7Format shown: Traditional Facility — In-line restaurant without drive-thru (leased site)
$405,350–$875,950 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $20,000 Disclosed
Fee is prorated for Franchise Agreement terms shorter or longer than 10 years; development-incentive programs let this same fee be prepaid, not discounted. Other required Item 5 payments to the franchisor are listed separately below — this figure is the named fee only. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $25,000 Derived
$26,200 Derived
|
| Total initial investment — low | $405,350 Disclosed
|
| Total initial investment — high | $875,950 Disclosed
|
| Midpoint of range | $640,650 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Firehouse of America, LLC; we do not fill gaps with estimates or third-party figures. No minimum liquid capital requirement appears on the cover pages or in Items 1, 5, 7 or 15 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Firehouse of America, LLC; we do not fill gaps with estimates or third-party figures. No minimum net worth requirement is stated. Item 17 says renewal and transfer approval depend on meeting the franchisor's then-current financial ratios, but those ratios are not published in the FDD. |
Figures are for the in-line Traditional Facility without a drive-thru, the least expensive of the three formats in Item 7, and exclude the cost of buying land or a building. The franchisor states it cannot estimate real estate cost and assumes a leased site of roughly 1,200 to 2,000 sq ft. Working capital covers 3 months. Of the total, only the $20,000 franchise fee, the $5,000 market introduction fee and the $1,200 MIS system fee are paid to the franchisor. The two drive-thru formats run materially higher: $528,159–$1,087,050 for an end-cap with drive-thru and $767,950–$1,577,750 free-standing with drive-thru. The line items in each table add exactly to the stated totals.
Item 7 line items (20)
| Expenditure | Low | High |
|---|---|---|
| Background check fee — Payable to third parties on application | $0 | $450 |
| Initial franchise fee — Payable to franchisor at signing | $20,000 | $20,000 |
| Mural — Paid to the artist the franchisor commissions | $3,500 | $6,000 |
| Training — Travel, lodging and related costs for two required attendees | $7,000 | $26,000 |
| Market introduction fee — Payable to franchisor at signing | $5,000 | $5,000 |
| Real estate — Not estimated; see Item 7 Note 5 | — | — |
| Architectural and engineering fees | $11,000 | $20,000 |
| POS system / technology | $5,000 | $7,500 |
| Real property improvements | $0 | $10,000 |
| Leasehold improvements — Largest single line item | $210,000 | $459,000 |
| Deposits and prepaid expenses — 2025 deposits ranged from 0 to 12 months | $2,500 | $21,500 |
| Exterior signs | $4,500 | $21,900 |
| Interior branding and graphics | $7,000 | $16,000 |
| Equipment and fixtures | $105,000 | $169,000 |
| Opening inventory | $12,000 | $25,000 |
| Business licenses | $650 | $14,900 |
| Insurance | $500 | $1,500 |
| MIS system fee — Annual fee payable to franchisor, due before opening | $1,200 | $1,200 |
| Legal, accounting and professional fees | $500 | $6,000 |
| Additional funds — working capital, 3 months | $10,000 | $45,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Firehouse of America, LLC (table begins PDF p. 34) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (2)
| Format | Low | High | Fee |
|---|---|---|---|
| Traditional Facility — In-line end-cap with drive-thru | $528,159 | $1,087,050 | $20,000 |
| Traditional Facility — Free-standing with drive-thru | $767,950 | $1,577,750 | $20,000 |
Ongoing fees
FDD Item 6Royalty
6% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Firehouse of America, LLC
- Document
- FDD 2026, issued 2026-03-25
- Item
- Item 6 — Other Fees table — Royalty
- Page
- PDF p. 29
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640423
6% of Gross Sales per Accounting Period.
6% of Gross Sales per accounting period (currently a 7-day Monday–Sunday period for royalty and marketing), payable on the 3rd day of the period. Franchisees approved to develop in one of twelve designated accelerated markets may receive a 2-percentage-point reduction for the first three years of the Franchise Agreement term. Under the optional Deferred Renovation Addendum, failing to complete an agreed renovation by the deadline raises the royalty to a pre-agreed default rate, typically up to 9% of Gross Sales, until the work is done.
Brand advertising fund
5% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Firehouse of America, LLC
- Document
- FDD 2026, issued 2026-03-25
- Item
- Item 6 — Other Fees table — System Fund Contribution
- Page
- PDF p. 29
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640423
System Fund Contribution, not to exceed 5% of Gross Sales and currently set at 5%, payable on the 3rd day of each accounting period to the Firehouse Subs System Fund administered by affiliate FSSF. The fund is not audited. Item 11 reports the FY2025 spend mix as media 39.18%, digital 30.10%, professional services and G&A 13.49%, ad agencies 12.95%, research 2.26%, creative 1.92% and legal 0.10%.
Local marketing
Not disclosed in the reviewed source Not disclosed
Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Firehouse of America, LLC; we do not fill gaps with estimates or third-party figures.
Neither Item 6 nor Item 11 sets a minimum local advertising spend. Item 11 requires that all local advertising use franchisor-approved media, type and format, and that plans not previously approved be submitted for written approval; plans are deemed disapproved if no response arrives within 15 days.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 6% of gross sales Disclosed
6% of Gross Sales per accounting period (currently a 7-day Monday–Sunday period for royalty and marketing), payable on the 3rd day of the period. Franchisees approved to develop in one of twelve designated accelerated markets may receive a 2-percentage-point reduction for the first three years of the Franchise Agreement term. Under the optional Deferred Renovation Addendum, failing to complete an agreed renovation by the deadline raises the royalty to a pre-agreed default rate, typically up to 9% of Gross Sales, until the work is done. 6% of Gross Sales per accounting period (currently a 7-day Monday–Sunday period for royalty and marketing), payable on the 3rd day of the period. Franchisees approved to develop in one of twelve designated accelerated markets may receive a 2-percentage-point reduction for the first three years of the Franchise Agreement term. Under the optional Deferred Renovation Addendum, failing to complete an agreed renovation by the deadline raises the royalty to a pre-agreed default rate, typically up to 9% of Gross Sales, until the work is done. |
|---|---|
| Advertising / brand fund | 5% of gross sales Disclosed
System Fund Contribution, not to exceed 5% of Gross Sales and currently set at 5%, payable on the 3rd day of each accounting period to the Firehouse Subs System Fund administered by affiliate FSSF. The fund is not audited. Item 11 reports the FY2025 spend mix as media 39.18%, digital 30.10%, professional services and G&A 13.49%, ad agencies 12.95%, research 2.26%, creative 1.92% and legal 0.10%. System Fund Contribution, not to exceed 5% of Gross Sales and currently set at 5%, payable on the 3rd day of each accounting period to the Firehouse Subs System Fund administered by affiliate FSSF. The fund is not audited. Item 11 reports the FY2025 spend mix as media 39.18%, digital 30.10%, professional services and G&A 13.49%, ad agencies 12.95%, research 2.26%, creative 1.92% and legal 0.10%. |
| Required local marketing | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Firehouse of America, LLC; we do not fill gaps with estimates or third-party figures. Neither Item 6 nor Item 11 sets a minimum local advertising spend. Item 11 requires that all local advertising use franchisor-approved media, type and format, and that plans not previously approved be submitted for written approval; plans are deemed disapproved if no response arrives within 15 days. |
| Technology / software | $150/month Disclosed
Digital Technology Fee of $150 per restaurant per month plus 1% of Digital Sales (sales originating from or facilitated by the franchisor's app, website, loyalty and other digital channels; third-party ordering platforms excluded). Separately, the MIS System Fee is $1,200 per restaurant per year, payable even before the restaurant opens. Item 6 also reserves the right to charge a further technology fee of $0 to $1.00 per transaction, currently not charged. Item 8 estimates required computer hardware and software at 1.8%–2.9% of opening cost and 1.1%–1.8% of operating cost. Digital Technology Fee of $150 per restaurant per month plus 1% of Digital Sales (sales originating from or facilitated by the franchisor's app, website, loyalty and other digital channels; third-party ordering platforms excluded). Separately, the MIS System Fee is $1,200 per restaurant per year, payable even before the restaurant opens. Item 6 also reserves the right to charge a further technology fee of $0 to $1.00 per transaction, currently not charged. Item 8 estimates required computer hardware and software at 1.8%–2.9% of opening cost and 1.1%–1.8% of operating cost. |
| Advertising cooperative | 0%–4% of gross sales Disclosed
Franchisees must join and participate in the Co-op (Firehouse Subs Market Fund, Inc., an affiliate). The Co-op may require a Special Co-Op Contribution of up to 4% of Gross Sales, paid weekly; the FDD states none is in effect as of the issuance date. Failure to pay it when required is a material breach of the Franchise Agreement. Franchisees must join and participate in the Co-op (Firehouse Subs Market Fund, Inc., an affiliate). The Co-op may require a Special Co-Op Contribution of up to 4% of Gross Sales, paid weekly; the FDD states none is in effect as of the issuance date. Failure to pay it when required is a material breach of the Franchise Agreement. |
| Transfer fee | $10,000 one-time Derived
Item 6 states the transfer fee is 50% of the then-current initial franchise fee. Formula: 0.50 × $20,000 current initial franchise fee (Item 5) = $10,000. A transfer among existing owners of the franchisee costs $1,500. The fee is payable before the transfer closes. |
| Renewal fee | $10,000 one-time Derived
Item 6 states the renewal fee is 50% of the then-current initial franchise fee. Formula: 0.50 × $20,000 current initial franchise fee (Item 5) = $10,000. Payable when the successor franchise agreement is signed; the option must be exercised during the 9th year of the term and no later than 180 days before expiration. |
| Royalty + ad fund (% of sales) | 11% Derived
|
Fee schedule (28 fees; 19 verified against the source, 9 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty | 6% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 29 | Franchisees approved to develop in one of 12 designated accelerated markets may receive a 2-percentage-point reduction for the first 3 years of the applicable Franchise Agreement term. Payable the 3rd day of the Accounting Period. |
| System Fund Contribution | 5% of gross sales | weekly | Yes | verified (tie-break) | Item 6, p. 29 | Paid to the System Fund the franchisor established for system-wide marketing and advertising; Item 6 note 1 excepts it (with the Special Co-Op Contribution) from the fees payable to the franchisor itself. range_high dropped (Pass B's shape): 5% is a single current rate that also equals the ceiling, so it is recorded as value 5 with the cap carried in `maximum` rather than as a degenerate 5-5 range. Weekly frequency is right - the Accounting Period for Royalty and Marketing calculations is a 7-day Monday-Sunday period (Item 6 note 3). |
| Special Co-Op Contribution | 0%–4% of gross sales | weekly | No | verified (2-pass) | Item 6, p. 30 | Only payable if/when the Co-op (Firehouse Subs Market Fund, Inc.) requires it under the Membership Agreement; none in effect as of issuance date. Failure to pay when required is a material breach. Franchisee must join and actively participate in the Co-op (an affiliate). |
| MIS System Fees | $1,200 | annual | Yes | verified (2-pass) | Item 6, p. 29 | Due even if the Restaurant has not yet opened; prorated for partial first year. |
| Digital Technology Fee (fixed component) | $150 | monthly | Yes | verified (2-pass) | Item 6, p. 29 | Same disclosed fee row as digital-technology-fee-percent; the two components apply together, not as alternatives. |
| Digital Technology Fee (variable component) | 1% of other | monthly | Yes | verified (2-pass) | Item 6, p. 29 | Same disclosed fee row as digital-technology-fee-fixed. |
| Delivery Guest Support Services Fee | $0–$1 | monthly | Yes | verified (tie-break) | Item 6, p. 29 | Applies only to orders placed through the Firehouse Subs app or website where the guest selects delivery; the franchisee collects the same $0.25-$0.75 from the guest as part of the delivery fee. Basis resolved to per_unit (per delivery order), not 'other'; frequency resolved to monthly because the Item 6 Remarks column says 'the following month we will invoice you for the total amount', i.e. accrual per order, billing monthly in arrears. Mandatory is true - Item 6 note 1 says all fees are uniformly imposed, and the fee triggers on any app/web delivery order rather than being elective. |
| Technology Fees (future/discretionary) | $0–$1 | varies | No | verified (2-pass) | Item 6, p. 29 | Only applies if the franchisor elects to provide additional technology services. |
| Additional Training | $50 | per event | No | verified (2-pass) | Item 6, p. 30 | Provided on an as-needed basis; no established schedule. |
| Refresher Training | $100 | per event | No | verified (2-pass) | Item 6, p. 30 | Payable only if the franchisor requires a team member to attend refresher training. |
| Artwork Costs | $1,000 | one time | Yes | verified (2-pass) | Item 6, p. 30 | Reimbursement of franchisor's cost to remove artwork upon termination/expiration of the Franchise Agreement. |
| Transfer | Not stated | one time | No | verified (tie-break) | Item 6, p. 30 | Payable prior to consummation of a transfer of the Franchise Agreement or of a controlling interest in the franchisee. amount_type 'formula' (Pass B) rather than 'percent': the 50% is a percentage of another fee, not of a sales basis, so percent + basis 'other' would misread as 50% of revenue. mandatory false because it is payable only if a transfer occurs. |
| Renewal | Not stated | one time | No | verified (tie-break) | Item 6, p. 30 | Payable when the franchisee signs a successor franchise agreement; the option is exercisable, subject to conditions, during the 9th year of the Term but no later than 180 days before expiration. Same typing decision as the Transfer fee: 'formula' rather than 'percent', because the 50% is applied to another fee, not to sales. Conditions trimmed to what Item 6 p.30 actually prints; Pass B's added reimaging/renovation requirement is an Item 17 condition and is not restated here. |
| Insurance (franchisor-obtained) | Not stated | varies | No | single-pass | Item 6, p. 30 | Only payable if the franchisor obtains insurance for the restaurant (e.g., franchisee fails to maintain required coverage). [Listed by one verification pass only (A); not independently confirmed.] |
| Product Testing, Inspections and Approval | Not stated | varies | No | single-pass | Item 6, p. 30 | Only if the franchisee requests approval to purchase from a supplier the franchisor has not already approved. [Listed by one verification pass only (A); not independently confirmed.] |
| Development Agreement Brand Damage Fee | Not stated | one time | No | single-pass | Item 6, p. 31 | Payable if the franchisor terminates the Development Agreement before expiration; franchisor also retains prepaid fees already paid. [Listed by one verification pass only (A); not independently confirmed.] |
| Audit | Not stated | varies | No | single-pass | Item 6, p. 31 | Payable only if the franchisee fails to furnish required reports/records or underreports sales by 2% or more. [Listed by one verification pass only (A); not independently confirmed.] |
| Interest | 1.5% of other | monthly | No | single-pass | Item 6, p. 31 | Only applies to overdue amounts. [Listed by one verification pass only (A); not independently confirmed.] |
| Late Payment Penalties | $250 | per event | No | verified (tie-break) | Item 6, p. 31 | Payable on all late payments, late reports and dishonored checks, including interest; separate from the Interest row (lesser of 1.5% per month or the highest lawful contract rate). Verified verbatim on p.31: 'Late Payment Penalties $250 - Due on payment of late amount - Payable on all late payments, late reports and dishonored checks, including interest.' |
| Third-Party Food Safety and Brand Standards Inspections | Not stated | varies | No | single-pass | Item 6, p. 31 | Only if the Restaurant fails an inspection or receives a non-passing score on operational metrics and a re-inspection/additional inspection is required. [Listed by one verification pass only (A); not independently confirmed.] |
| Costs and Attorneys' Fees | Not stated | varies | No | single-pass | Item 6, p. 31 | Payable upon franchisee's failure to comply with the Franchise Agreement. [Listed by one verification pass only (A); not independently confirmed.] |
| Indemnification | Not stated | varies | No | single-pass | Item 6, p. 31 | Franchisee must reimburse the franchisor if it is held liable for claims arising from the Restaurant's operations. [Listed by one verification pass only (A); not independently confirmed.] |
| Deferred Renovation Default Royalty | Not stated | weekly | No | verified (tie-break) | Item 6, p. 31 | Applies only to franchisees who sign the Deferred Renovation Addendum (Exhibit C2) and then fail to complete the renovation to specification by the agreed deadline; takes effect on 90 days' notice and runs until the franchisor confirms completion. amount_type 'percent' (Pass B) is correct because the basis is Gross Sales; value stays null because the rate is negotiated before signing and is not disclosed, with the 9% ceiling carried in range_high and `maximum` from note 4. No double counting: overlaps_with 'royalty' and model_treatment unknown_amount leave royalty as the only percent_of_revenue entry. |
| Firehouse Subs Public Safety Foundation Contribution | $1,000 | one time | Yes | single-pass | Item 6, p. 32 | Applies only to Restaurants developed under a Development Agreement. [Listed by one verification pass only (A); not independently confirmed.] |
| POS System Subscription and Help Desk Support | $300 | monthly | Yes | verified (2-pass) | Item 11, p. 51 | Franchisor may require upgrades/updates at any time with no cap on frequency or cost. |
| BOH System Software Fee | $129 | monthly | Yes | verified (2-pass) | Item 11, p. 51 | |
| High-Speed Internet Connection | $50–$175 | monthly | Yes | verified (tie-break) | Item 11, p. 51 | Mandatory - the connection must allow the franchisor and its vendors to remotely update menus, recipes and configuration and to retrieve POS/BOH data; two telephone lines and WiFi are also required. Quote and page verified verbatim at Item 11, p.51. Both passes actually found this fee; Pass B filed it under the id 'internet-connection', which is dropped as a duplicate. |
| Hardware and software upgrades | $500–$12,000 | annual | Yes | verified (tie-break) | Item 11, p. 51 | The franchisor may require upgrades or updates to the POS System, BOH System and other required technology at any time during the term, and Item 11 states there is no limitation on the frequency or cost. Quote and page verified verbatim at Item 11, p.51. Distinct from the POS subscription/help-desk entry ($300 per month) and the BOH software entry ($129 per month), which cover recurring service rather than upgrade capex, so no overlaps_with is needed. |
Combined ongoing fees payable on Gross Sales are 6% royalty plus 5% System Fund, i.e. 11% before the fixed digital and MIS charges and any future Special Co-Op Contribution of up to 4%. Item 5 also lists a background check fee of up to $500 and a $5,000 Market Introduction Fee due at signing. Development Agreement signers pay a Prepaid Franchise Fee equal to half the initial franchise fee per committed restaurant ($10,000 in 2024), credited against the initial fee for each restaurant developed. Item 6 further lists an insurance procurement charge capped at $5,000, product and supplier evaluation costs capped at $30,000 per product or supplier, artwork removal costs up to $1,000, and a Development Agreement brand damage fee equal to unpaid prepaid franchise fees if the franchisor terminates the Development Agreement early.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: Franchised Firehouse Subs restaurants in the United States (excluding U.S. territories) that operated continuously through the whole 2025 fiscal year ended December 31, 2025. Company-owned restaurants are excluded throughout. Section A splits the system into three formats and reports gross sales only: 1,033 of 1,109 counter-service restaurants without a drive-thru (76 excluded as not open all year); 35 of 39 free-standing restaurants with a drive-thru (4 excluded); and 69 of 86 end-cap strip-centre restaurants with a drive-thru (17 excluded). Section B and C report sales, costs and restaurant-level EBITDA for a smaller, self-selected group: 704 of the 1,137 franchised restaurants open all of 2025, after excluding 433 that did not submit or submitted incomplete profit and loss statements and 97 not open all year. The FDD states 21 franchised restaurants closed permanently during 2025, all of which had operated at least 12 months, and none of those are in the tables.
Qualifications: The FDD publishes no single systemwide average across all franchised restaurants; the three Section A tables must be read separately and cover 1,137 restaurants in total. Sales data comes from franchisee royalty reports and point-of-sale systems on a cash basis and is expressly not audited. Restaurants not open for the entire 2025 fiscal year are excluded from every table, as are the 21 franchised restaurants that closed permanently in 2025 and all company-owned restaurants. The cost and EBITDA data in Sections B and C rests on 704 of 1,137 eligible restaurants — the 433 that did not submit, or submitted incomplete, profit and loss statements are excluded, so those figures reflect a self-selected group. Restaurant-level EBITDA excludes depreciation, amortisation, interest, taxes, franchise fees, loan fees and any corporate or above-restaurant overhead, and is therefore not the owner's net income. Section C is grouped by the franchisor's own PNE operating scorecard, not by anything a buyer can verify independently. In the counter-service table only 45% of restaurants met or exceeded the average, and the lowest reported restaurant recorded $154,410 of annual sales.
View full Item 19 disclosure and tables
Item 19 is a substantial historical disclosure covering both sales and restaurant-level costs, but it is presented in pieces. Section A gives 2025 gross sales by restaurant format: counter-service restaurants without a drive-thru averaged $973,809 across 1,033 units, free-standing drive-thru restaurants averaged $1,054,318 across 35 units, and end-cap drive-thru restaurants averaged $1,123,608 across 69 units. Quartile detail shows a wide spread — the top quartile of counter-service restaurants averaged $1,362,686 while the bottom quartile averaged $645,319. Sections B and C add cost lines and restaurant-level EBITDA, averaging $103,119 (10.0% of sales) and a median of $95,743 (9.7%), but only for the 704 restaurants that submitted complete profit and loss statements. What Item 19 does not show is an owner's take-home profit: EBITDA here is before depreciation, interest, taxes, loan payments and any corporate overhead, and no figures are given for company-owned restaurants, for restaurants open less than a full year, or for the 21 franchised restaurants that closed during 2025.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Annual gross sales — counter-service franchised restaurants open all of 2025 45% of units met or exceeded 463 of 1,033 restaurants met or exceeded the average. | Counter service (no drive-thru) Average | $973,809 | 1,033 | FY2025 | FDD p.74 |
| Annual gross sales — counter-service franchised restaurants open all of 2025 | Counter service (no drive-thru) Median | $938,981 | 1,033 | FY2025 | FDD p.74 |
| Annual gross sales — highest counter-service restaurant | Counter service (no drive-thru) High | $3,523,523 | 1,033 | FY2025 | FDD p.74 |
| Annual gross sales — lowest counter-service restaurant | Counter service (no drive-thru) Low | $154,410 | 1,033 | FY2025 | FDD p.74 |
| Annual gross sales — top quartile of counter-service restaurants 37% of units met or exceeded Quartile range $1,131,060 to $3,523,523; median $1,290,643. | Counter service, top 25% Quartile avg. | $1,362,686 | 258 | FY2025 | FDD p.74 |
| Annual gross sales — bottom quartile of counter-service restaurants 62% of units met or exceeded Quartile range $154,410 to $776,050; median $679,227. | Counter service, 75%-100% Quartile avg. | $645,319 | 259 | FY2025 | FDD p.74 |
| Annual gross sales — free-standing franchised restaurants with drive-thru 57% of units met or exceeded Median $1,058,115; range $402,349 to $1,442,070. Only 35 of the system's 39 such restaurants qualified. | Free-standing with drive-thru Average | $1,054,318 | 35 | FY2025 | FDD p.74 |
| Annual gross sales — end-cap strip-centre franchised restaurants with drive-thru 42% of units met or exceeded Median $1,031,817; range $488,122 to $2,223,620. Only 69 of the system's 86 such restaurants qualified. | End-cap strip centre with drive-thru Average | $1,123,608 | 69 | FY2025 | FDD p.75 |
| Annual gross sales — franchised restaurants that submitted complete profit and loss statements Median for the same group was $986,432. This group covers all restaurant formats but only the 704 of 1,137 eligible restaurants that submitted complete P&L statements. | All formats, P&L submitters only Average | $1,035,521 | 704 | FY2025 | FDD p.76 |
| Cost of goods sold as a share of sales Food, beverage, paper and packaging. Average $315,746. | All formats, P&L submitters only Average | 30.5% | 704 | FY2025 | FDD p.76 |
| Restaurant labour as a share of sales Restaurant-level hourly and management labour. Average $272,237; excludes district and area managers. | All formats, P&L submitters only Average | 26.3% | 704 | FY2025 | FDD p.76 |
| Occupancy cost as a share of sales Average $78,625. Ranges from 5.7% of sales in the >$1.2M band to 10.8% in the <$0.8M band. | All formats, P&L submitters only Average | 7.6% | 704 | FY2025 | FDD p.76 |
| Other operating costs as a share of sales Average $265,793. Includes royalties, System Fund contributions, MIS and digital technology fees, utilities, insurance and small repairs. | All formats, P&L submitters only Average | 25.7% | 704 | FY2025 | FDD p.76 |
Disclosed cost and profit figures
These figures are disclosed by the franchisor for the population stated in each row — often a subset (company-owned units, or franchisees who chose to report). They frequently exclude owner compensation, rent, debt service, taxes or royalties. They are not a prediction of your results.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Restaurant-level EBITDA — franchised restaurants that submitted complete P&L statements Defined as annual sales less cost of goods sold, labour, occupancy and other costs. Excludes depreciation, amortisation, interest, taxes, loan fees, franchise fees and any above-restaurant or corporate overhead, so it is not owner profit. | All formats, P&L submitters only Average | $103,119 | 704 | FY2025 | FDD p.76 |
| Restaurant-level EBITDA margin — franchised restaurants that submitted complete P&L statements | All formats, P&L submitters only Average | 10% | 704 | FY2025 | FDD p.76 |
| Restaurant-level EBITDA — franchised restaurants that submitted complete P&L statements Median EBITDA margin 9.7% on median annual sales of $986,432. | All formats, P&L submitters only Median | $95,743 | 704 | FY2025 | FDD p.76 |
| Restaurant-level EBITDA — restaurants with annual sales above $1.2M 13.0% margin on average annual sales of $1,450,814. | Annual sales > $1.2M, P&L submitters only Average | $189,282 | 164 | FY2025 | FDD p.76 |
| Restaurant-level EBITDA — restaurants with annual sales below $0.8M 3.8% margin on average annual sales of $679,537. | Annual sales < $0.8M, P&L submitters only Average | $25,679 | 145 | FY2025 | FDD p.76 |
| Restaurant-level EBITDA — restaurants graded 'A' on the December 2025 PNE scorecard 11.5% margin on average annual sales of $1,118,637. | PNE grade A, P&L submitters only Average | $128,724 | 146 | FY2025 | FDD p.77 |
| Restaurant-level EBITDA — restaurants graded 'F' on the December 2025 PNE scorecard 8.5% margin on average annual sales of $862,050. | PNE grade F, P&L submitters only Average | $73,500 | 44 | FY2025 | FDD p.77 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 1,149 | 47 | 0 | 6 | 0 | 20 | 1,170 | 72 | 39 |
| 2024 | 1,170 | 62 | 0 | 9 | 3 | 14 | 1,206 | 100 | 42 |
| 2025 | 1,206 | 73 | 6 | 15 | 0 | 9 | 1,249 | 88 | 42 |
Disclosed 2026 Franchise Disclosure Document — Firehouse of America, LLC, Item 20, Tables 1–3 (PDF p. 81). All Item 20 tables are U.S. state-by-state (Puerto Rico included) and exclude the affiliate-operated restaurants in Canada, Latin America and Europe. Franchised outlets grew from 1,149 to 1,249 over the three years, a net gain of 100, on 182 openings against 6 terminations, 30 non-renewals, 3 reacquisitions and 43 closures for other reasons. Closure activity rose in 2025: terminations went from 0 in each of 2023 and 2024 to 6, and non-renewals from 6 and 9 to 15, though openings also rose to 73. Company-owned units were flat at 42 in 2025 after three reacquisitions in 2024. Transfers between franchisees were heavy relative to system size at 72, 100 and 88 over the three years. Table 1, Table 3 and Table 4 reconcile exactly. Item 20 also notes Exhibit J2 lists 118 franchisees who left the system in the most recent fiscal year or who have not communicated with the franchisor within 10 weeks of the issuance date, and states that some current and former franchisees have signed provisions restricting their ability to speak openly about their experience.
Source data notes (8) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [C/minor] Item 19 vs Table 1 / Table 3 2025: Item 19 reports 1,234 franchised Restaurants at 12/31/2025 while Item 20 Table 1 and Table 3 both report 1,249 franchised outlets at year end - a 15-outlet gap the document never explains. — Both figures are printed and genuinely disagree. Item 19, p.73: 'As of December 31, 2025, there were 1,234 franchised Restaurants in the Firehouse franchise system' (its three format populations sum to 1,109 + 39 + 86 = 1,234). Item 20 Table 3 TOTAL row, p.89: '2025 1,206 73 6 15 0 9 1,249', matching Table 1's franchised end-of-year 1,249 on p.81. The Item 20 total is corroborated twice over - by Table 1 and Table 3 agreeing, and by Item 1 p.9 ('1,291 were located in the United States ... 42 were owned by us', i.e. 1,291 - 42 = 1,249) - so Item 20's 1,249 is the figure to use and Item 19's narrower FPR universe is the outlier. Item 19's count is 1.2% below Item 20's, but because the Item 20 total is independently corroborated the total itself is not in doubt.
- [D/minor] Item 19 vs Table 3 2025: Item 19 reports 21 franchised restaurants permanently closed in 2025, while Table 3 FY2025 shows 6 terminations + 15 non-renewals + 9 ceased-other = 30 franchised exits. — Definitional, not arithmetic. Table 3 counts every outlet that left a franchise agreement during the year, whereas Item 19 counts only restaurants that permanently closed. Table 3 footnote ii (p.89) confirms the difference is real - Arizona FY2024/FY2025, California FY2025, Georgia FY2025 and Texas FY2025 openings 'Include[] outlets at locations that were closed and later re-opened under a new agreement with a different franchisee' - so a site can appear as an exit and as an opening in the same or a later year without being a permanent closure. Footnote i adds the standard warning that totals may not reconcile with figures shown elsewhere. Every Table 3 row foots and the FY2025 end-of-year total is corroborated, so only the composition of attrition is affected.
- [E/minor] Table 2 2025: Table 2 lists 51 jurisdictions (50 states plus the District of Columbia) but has no Puerto Rico row, even though Tables 3 and 5 both include Puerto Rico. — Re-summed independently: the listed state rows total exactly 72 (2023), 100 (2024) and 88 (2025), matching the printed TOTAL rows on p.84, so Table 2 is internally consistent. What cannot be determined from the source is whether Puerto Rico genuinely had zero transfers in all three years or was omitted from the table altogether - the table prints all-zero rows for many other jurisdictions, which makes a deliberate omission of a zero row inconsistent with its own presentation, and Puerto Rico carried 14-15 franchised outlets (Table 3). No corroborating transfer figure exists elsewhere in the FDD. The printed totals are the only figures available and are used as printed; the exposure is confined to transfers and cannot change any outlet count.
- [D/minor] Table 3 2025: Terminations are 0 for FY2023 and FY2024 and then jump to 6 in FY2025, while non-renewals (6, 9, 15) and ceased-operations-other (20, 14, 9) absorb the churn. — A classification convention rather than an error: in a system of roughly 1,200 franchised outlets, exits are being recorded as non-renewals or 'ceased operations - other reasons' instead of terminations. The row arithmetic is unaffected - the FY2023 total is 1,149 + 47 - 0 - 6 - 0 - 20 = 1,170, FY2024 is 1,170 + 62 - 0 - 9 - 3 - 14 = 1,206 and FY2025 is 1,206 + 73 - 6 - 15 - 0 - 9 = 1,249, each matching the printed TOTAL and each tying to Table 1's start and end columns. Only the split of attrition by reason is affected, not the level of attrition or any unit total.
- [D/minor] Table 3 2025: Footnote ii flags Arizona FY2024/FY2025, California FY2025, Georgia FY2025 and Texas FY2025 as including outlets at locations that were closed and later re-opened under a new agreement with a different franchisee, so part of the 73 FY2025 openings are re-openings rather than net-new development. — The footnote explains the treatment, so the printed opening counts are correct as defined; the FDD simply does not break out how many of the 73 openings were re-openings. The TOTAL row still foots to the corroborated 1,249 year-end figure, so gross openings should be presented as disclosed with a caveat that gross openings overstate net-new sites.
- [D/minor] Table 5 2026: Table 5 projects 105 new franchised openings for FY2026 against only 11 franchise agreements signed but not yet open, versus 73 actual franchised openings in FY2025. — The two columns count different things and are not required to tie: 'Franchise Agreements Signed But Outlet Not Opened' counts executed single-unit Franchise Agreements, while projected openings also cover units committed under multi-unit Development Agreements that have not yet been converted into Franchise Agreements - Item 5 discloses active 2026-2028 and Veteran/First Responder development incentive programs that run on exactly that structure. This is a forward-looking projection, not a historical figure, and it does not feed any derived metric computed from Tables 1-4; it should be labelled a projection and not read as a pipeline count.
- [D/minor] Item 1 vs Item 20 2025: Item 20 covers U.S. outlets only (including Puerto Rico) and shows 1,291 total U.S. outlets, while Item 1 discloses 1,496 Firehouse Subs restaurants worldwide at 12/31/2025. — A scope difference, not a discrepancy: Item 20 is required to report U.S. outlets, and Item 1 p.9 states 'there were 1,496 FIREHOUSE SUBS Restaurants worldwide, of which 1,291 were located in the United States, including the U.S. Territory of Puerto Rico. Of the total number ... in the U.S., 42 were owned by us.' The 205-unit difference sits with the non-U.S. affiliates (FRG 25 plus the Canadian and European systems). Item 1's 1,291 and 42 corroborate Table 1's 1,291 total and Table 4's 42 company-owned, and hence the 1,249 franchised total. Any site figure must be labelled U.S. rather than system-wide.
- [D/minor] Exhibit J2 vs Table 3 2025: Exhibit J2 lists 118 franchisees, against 30 franchised outlet exits shown in Table 3 for FY2025. — Different units of count and a wider inclusion rule, stated on p.91: J2 lists franchisees and developers who left the system during the most recent fiscal year 'or have not communicated with us within 10 weeks of the issuance date of this Disclosure Document', so it mixes departures with non-responders and counts franchisees (who may hold several outlets or a development agreement) rather than outlets. It is not comparable to Table 3's outlet exits and does not contradict them; the Table 3 totals stand.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 38 | 1 | 0 | 0 | 0 | 39 |
| 2024 | 39 | 0 | 3 | 0 | 0 | 42 |
| 2025 | 42 | 0 | 0 | 0 | 0 | 42 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Firehouse of America, LLC
- Document
- FDD 2026, issued 2026-03-25
- Item
- Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business
- Page
- PDF p. 62
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640423
The Managing Owner must devote full-time and best efforts to supervising the operation of your Restaurant
A franchisor-approved Managing Owner must hold at least a 10% legal or beneficial interest in the franchisee, or the right to at least 10% of the restaurant's operating profits, must complete initial training, must live within reasonable driving distance of the restaurant, and must devote full time and best efforts to supervising it. That person may not take on any other business or activity requiring substantial management responsibility. A hired manager without the required ownership stake is therefore not sufficient, though the Managing Owner supervises rather than necessarily working every shift.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Owner-operator required Disclosed
A franchisor-approved Managing Owner must hold at least a 10% legal or beneficial interest in the franchisee, or the right to at least 10% of the restaurant's operating profits, must complete initial training, must live within reasonable driving distance of the restaurant, and must devote full time and best efforts to supervising it. That person may not take on any other business or activity requiring substantial management responsibility. A hired manager without the required ownership stake is therefore not sufficient, though the Managing Owner supervises rather than necessarily working every shift. A franchisor-approved Managing Owner must hold at least a 10% legal or beneficial interest in the franchisee, or the right to at least 10% of the restaurant's operating profits, must complete initial training, must live within reasonable driving distance of the restaurant, and must devote full time and best efforts to supervising it. That person may not take on any other business or activity requiring substantial management responsibility. A hired manager without the required ownership stake is therefore not sufficient, though the Managing Owner supervises rather than necessarily working every shift. |
|---|---|
| Initial training | The initial Training Program runs approximately 6 to 7 weeks: about 5 weeks in a certified training Firehouse Subs restaurant plus a final week of classroom sessions, presently delivered virtually. The published schedule totals 240 hours of on-the-job training (skills modules, administration, and management operations and leadership, 80 hours each) plus 32 classroom hours (24 hours of franchisee classroom sessions and 8 hours of departmental workshops), held virtually or at the Jacksonville support centre or select cities. The franchisee and the Managing Owner must attend; up to two additional employees may attend if space allows. The franchisee pays all travel, lodging, meals, wages and any vendor charges, and Item 7 estimates those costs at $7,000 to $26,000 for two attendees. Disclosed
|
| Multi-unit / development options | Multi-unit growth runs through a Development Agreement granting a Development Area and a binding development schedule; the Development Area carries no territorial protection. The developer pays a Prepaid Franchise Fee equal to half the initial franchise fee per committed restaurant ($10,000 per restaurant collected in 2024), credited against each restaurant's initial fee. A one-year Target Reservation Agreement is also offered for a single approved site. Two development incentive programs are open for agreements signed by December 31, 2026: the 2026-2028 DIP pays $75,000 per restaurant opened in 2026–2028, plus a $25,000 bonus per restaurant for developers opening two or more, with enhanced variants of $150,000 per restaurant for qualifying existing 'A'-graded franchisees or for three or more restaurants in twelve designated accelerated markets, and $100,000 per restaurant plus a $500,000 payment for opening ten restaurants in 2027–2028. The Veteran and First Responder DIP pays $100,000 per restaurant to qualifying veterans or first responders who hold more than 50% ownership and control daily operations. Contributions are repayable if opening deadlines are missed. Under these programs the prepaid fee is $20,000 per committed restaurant rather than $10,000. Disclosed
|
| Territory (Item 12) | Item 12 states plainly that the franchisee does not receive an exclusive territory and may face competition from other franchisees, franchisor-owned outlets, other channels of distribution and competitive brands the franchisor controls. The Franchise Agreement does grant a 'Trade Area', generally the site plus a 1-mile radius, whose size the franchisor may vary; while the franchisee is in compliance the franchisor will not open or license a Firehouse Subs restaurant physically inside it, and will not approve a site inside another restaurant's Trade Area. That protection has clear limits: it does not apply to Nontraditional Locations (malls, airports, universities, hospitals, stadiums, convenience stores and similar), which may be opened inside the Trade Area, and it does not restrict sales into the area through grocery, delivery, catering, kiosks, the internet or other channels. Development Areas under a Development Agreement carry no territorial rights at all. No minimum performance quota is attached to keeping the Trade Area, but relocation requires franchisor approval. Disclosed
|
| Initial term | 10 years Disclosed
Typically 10 years from the date of the Franchise Agreement. |
| Renewal | One successor term of 10 years. The option must be exercised during the 9th year of the term and no later than 180 days before expiration, and the fee is 50% of the then-current initial franchise fee. Conditions include notice, being current on all monetary obligations, full compliance with the Franchise Agreement including franchisor approval of a reimaging plan, refurbishment and modernisation of the restaurant unless waived, a general release of all claims against the franchisor, training, no pending or threatened litigation between the parties, and meeting the franchisor's then-current financial ratios. The successor agreement is the franchisor's then-current form, which the FDD says may carry materially different terms including different ownership requirements and higher royalty or System Fund rates. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 13 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 13 matter(s) disclosed Disclosed Item 3 lists 12 pending matters and 1 concluded matter, and states that none were initiated by the franchisor. Four concern the Firehouse Subs brand directly: three trademark actions brought by the same individual plaintiff seeking to cancel or oppose FIREHOUSE SUBS marks on grounds including fraud and lack of commercial use, in which the franchisor's motion to dismiss was granted and affirmed on appeal with a certiorari petition filed in January 2026 and two TTAB oppositions still open; and a putative consumer class action filed in January 2026 alleging that the Firehouse Subs website transmitted data to third-party platforms through cookies and trackers contrary to its consent banner, in which Firehouse of America, LLC was substituted as defendant in February 2026. The remaining eight pending matters involve parent Restaurant Brands International and affiliates operating the Burger King, Tim Hortons and Popeyes systems: a Delaware fiduciary-duty suit by former Carrols Restaurant Group shareholders, a long-running Sherman Act no-poach class action against Burger King, several Canadian consumer class actions, a supplier contract claim, and a website-tracking class action against Burger King. The concluded matter was an ICC arbitration between affiliates and a Popeyes master franchisee that settled confidentially in 2022. No matters brought by Firehouse Subs franchisees are listed. Item 3 opens by stating that the litigation involves only affiliates or parents and that the franchisor is not a party, which does not square with two of the pending matters naming Firehouse of America, LLC as a defendant. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states no bankruptcy is required to be disclosed. |
| Personal guaranty | Required Disclosed
Officers, directors and every holder of a 10% or greater legal or beneficial interest must jointly and severally guarantee the franchisee's payment and performance under both the Franchise Agreement and the Development Agreement, on the Owner's Guaranty form at Exhibit C1, and are bound to the terms of those agreements. If a spouse or other family member is an owner of the entity, they must also sign. The FDD's state-required risk factors flag spousal liability, stating a spouse must sign a document making them liable for all financial obligations even without an ownership interest. |
| Non-compete | During the term, the franchisee and certain owners may not own or operate any restaurant or food service facility offering any type of sandwich, excluding hot dogs, hamburgers and fried chicken sandwiches. The same restriction runs for 2 years after sale, assignment, transfer, termination or expiration, applied to business activities within certain geographic areas. Item 17 does not state the radius or how those geographic areas are defined; the franchise agreement itself would need to be read for that. The franchisor may also require covenants from officers, directors and 10%-or-greater owners covering confidentiality and non-competition. Equivalent covenants appear in the Development Agreement. Disclosed
|
| Transfer restrictions | No transfer is permitted without the franchisor's prior written approval, and 'transfer' is defined broadly to include any interest in the franchisee or in the agreement, the grant of a security interest and sales of stock. Approval conditions include payment of all money owed, compliance with non-compete covenants, a general release, a qualified transferee, the transferee signing the franchisor's then-current franchise agreement and guaranty (which may differ materially from the original), refurbishment and modernisation of the restaurant unless waived, training of the transferee's staff, and payment of the transfer fee of 50% of the then-current initial franchise fee ($1,500 for transfers among existing owners). The franchisor holds a right of first refusal and can match any offer. On death or disability the interest must be assigned to an approved transferee within 6 months. Development Agreement transfers require consent that may be withheld at the franchisor's sole discretion. Disclosed
|
| Termination / non-renewal | The franchisee has no stated right to terminate and the franchisor may terminate only for cause. Curable defaults carry 30 days' notice, shortened to 10 days for failure to pay fees or file timely reports and 5 days for failure to maintain insurance, comply with applicable law or sell the required minimum menu items. The list of non-curable defaults is long and includes insolvency, failure to open or to stay open, criminal convictions, threats to health and safety, failure to meet transfer requirements, breach of non-compete or confidentiality covenants, false books or reports, repetition of earlier defaults, PCI/DSS non-compliance, selling unapproved products, failure to complete training, and conduct the franchisor believes adversely affects the reputation of the restaurant, the system or the marks. On termination or non-renewal the franchisee must fully de-identify, return manuals and confidential information, pay all amounts due, assign the lease and premises and the telephone numbers to the franchisor, comply with the non-compete, and reimburse artwork removal costs. Under the Development Agreement, missing a Cumulative Opening Target is curable once (60 days), and failure again is non-curable; the franchisor keeps all prepaid franchise fees and the developer owes liquidated damages equal to the next prepaid-fee instalment. Disclosed
|
| Supplier restrictions (Item 8) | Fixtures, equipment, supplies, furnishings, beverages, food and related items must meet franchisor standards, and some must come from approved suppliers; the franchisor has sole suppliers for food and beverages, cleaning supplies, packaging, certain equipment and quality assurance inspection services, and franchisees must join any group purchasing arrangements it negotiates. Required purchases to specification are stated as roughly 80% to 90% of purchases when establishing the restaurant and 30% to 40% of purchases in operating it. Direct purchases from the franchisor include the mural, the MIS system, the digital platforms and the delivery guest support service; no equipment or sundry supplies were bought from the franchisor or its affiliates in 2025. Approval of an alternative supplier takes up to 90 days and is deemed denied if no answer comes; the supplier bears the review cost, capped at $30,000 per product or supplier. In FY2025 the franchisor reported total revenues of $123,080,132, of which $6,257,443 (5.1%) came from required purchases and leases by franchisees. Affiliate FRG recorded $32,197,135 of rebate revenue and affiliate FSSF $4,995,534 from franchisee purchases, with $5,100,492 of rebates passed through to franchisees. Per-unit flat supplier payments ranged from $0.05 to $51.00. Disclosed
|
| Dispute resolution | Item 17 records no arbitration or mediation provision in the Franchise Agreement, the Development Agreement or the Target Reservation Agreement. Litigation must be brought in a state or federal court in the judicial district of the franchisor's principal place of business, currently Duval County, Florida, and Florida law generally applies, in each case subject to state law. The FDD's state-required risk factors warn that out-of-state dispute resolution in Florida may force a less favourable settlement and cost more than proceeding locally. Disclosed
|
- No exclusive territory: protection is limited to a roughly 1-mile Trade Area that does not cover Nontraditional Locations or non-restaurant sales channels (Item 12).
- Ongoing fees on Gross Sales total 11% (6% royalty plus 5% System Fund), before fixed digital and MIS charges and a possible Special Co-Op Contribution of up to 4% (Item 6).
- Under the Development Agreement, a developer's restaurants failing to score in the top 50% of their peer category, or receiving a 'D' or 'F' on any operational metric, is listed as a non-curable default (Item 17).
- Renewal requires signing the franchisor's then-current agreement, which the FDD says may carry higher royalty and System Fund rates, plus a general release and mandatory reimaging (Item 17).
- The optional Deferred Renovation Addendum sets a default royalty, typically up to 9% of Gross Sales, that applies until an agreed renovation is completed (Item 6).
- Item 20 states that some current and former franchisees have signed provisions restricting their ability to speak openly about their experience, and Exhibit J2 lists 118 franchisees who left the system or could not be reached.
- Item 19 reports 21 franchised restaurants closed permanently during 2025, all of which had been open at least 12 months.
- Item 3's introduction states the franchisor is not a party to any listed action, but two pending matters name Firehouse of America, LLC as a defendant.
- The franchisor does not offer or guarantee any financing (Items 7 and 10).
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology. This brand's Item 19 also discloses some cost or profit data — see the Item 19 section, which takes precedence over any assumption here.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $779,047 | $973,809 | $1,119,880 |
| − Cost of goods / supplies assumption | $241,505 | $301,881 | $347,163 |
| − Payroll (excl. owner) assumption | $218,133 | $272,667 | $313,566 |
| − Occupancy assumption | $62,324 | $77,905 | $89,590 |
| − Other operating expenses assumption | $85,695 | $107,119 | $123,187 |
| − Royalty disclosed 6% of gross sales = $58,429 |
$46,743 | $58,429 | $67,193 |
| − System Fund Contribution disclosed 5% of gross sales = $48,690 |
$38,952 | $48,690 | $55,994 |
| − MIS System Fees disclosed $1,200 per year |
$1,200 | $1,200 | $1,200 |
| − Digital Technology Fee (fixed component) disclosed $150/month × 12 = $1,800 |
$1,800 | $1,800 | $1,800 |
| − POS System Subscription and Help Desk Support disclosed $300/month × 12 = $3,600 |
$3,600 | $3,600 | $3,600 |
| − BOH System Software Fee disclosed $129/month × 12 = $1,548 |
$1,548 | $1,548 | $1,548 |
| = Modeled operating result before the items below (EBITDA-style) | $77,547 | $98,971 | $115,039 |
| − Manager compensation assumption | $60,000 | $60,000 | $60,000 |
| = Modeled result after manager compensation | $17,547 | $38,971 | $55,039 |
| − Illustrative debt service assumption | $72,615 | $72,615 | $72,615 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$55,068 | −$33,644 | −$17,576 |
| Modeled operating margin | 10% | 10.2% | 10.3% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 3 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- Digital Technology Fee (variable component) (Item 6, p. 29) — Requires an assumption about the share of Gross Sales that qualifies as Digital Sales.
- High-Speed Internet Connection (Item 11, p. 51) — $600-$2,100 per year depending on market; paid to a third-party ISP, not to the franchisor, but franchisor-mandated with a disclosed amount.
- Hardware and software upgrades (Item 11, p. 51) — A 24x range with no stated cap on frequency or cost; use a mid-point assumption and flag the upper tail.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — Firehouse of America, LLC · issued 2026-03-25. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — Firehouse of America, LLC Registry file 640423 · 487 pages Cover reads 'Issuance Date: March 25, 2026'; running footer reads 03/2026. Wisconsin registration effective 3/25/2026, status Registered; this is the newest document available in that registry. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-03-25 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-09-01): two independent AI reading passes plus tie-break re-inspection of every disagreement; 72 of 77 material fields confirmed (65 with the exact page citation re-confirmed), 3 corrected, 1 unresolved, 4 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (4)
- investment.franchise_fee_low / franchise_fee_high — recorded as the $20,000 initial franchise fee only. The FDD cover states $26,200 must be paid to the franchisor, which adds the $5,000 market introduction fee and the $1,200 MIS system fee; those are disclosed as separate fees rather than as part of the fee for the right to operate, so they are described in the note instead of being summed into the value.
- fees.transfer_fee.value and fees.renewal_fee.value — the FDD expresses both as 50% of the then-current initial franchise fee rather than a dollar figure; $10,000 is arithmetic on the current $20,000 fee and is marked derived.
- item19.headline_auv — the FDD publishes no single systemwide AUV. The counter-service figure was chosen because it has by far the largest population (1,033 units) and matches the in-line format used for the main Item 7 totals; the two drive-thru averages and the 704-unit all-format average are recorded as separate metrics.
- item19.population_share_of_system — left null because the Section A tables use three different populations and Item 19's franchised count (1,234) differs from Item 20 Table 1 (1,249).
Extraction notes (15)
- Unit counts come from Item 20 Table No. 1, which is U.S. only (Puerto Rico included). Item 1 reports 1,496 restaurants worldwide at Dec 31, 2025 with 1,291 in the U.S.; the remainder are operated by affiliates in Canada (173), Latin America (25) and Europe (7) and are outside this record.
- Item 19 states there were 1,234 franchised restaurants at Dec 31, 2025 while Item 20 Table No. 1 shows 1,249; the difference appears to be Item 19's exclusion of U.S. territories, but the FDD does not reconcile the two figures.
- Item 20 Tables 1, 3 and 4 reconcile exactly for all three years, and the Item 7 line items add precisely to the stated totals in all three formats.
- No minimum liquidity or net worth requirement is stated anywhere in the reviewed cover pages or Items 1–20; both are recorded as not_disclosed.
- fees.local_marketing is not_disclosed: the FDD imposes approval requirements on local advertising but sets no minimum spend.
- fees.cooperative is recorded as 0% with a range_high of 4%, matching the FDD's statement that no Special Co-Op Contribution is currently in effect but that up to 4% of Gross Sales may be required.
- The task brief said Items 10 and 11 were not split into separate files; in this work directory item_10.txt and item_11.txt do exist and were read directly.
- PDF page citations were resolved with pipeline/page_of.py; the FDD's printed page numbers run 8 pages behind the physical PDF pages.
- Verification 2026-09-01: correct /franchisor/franchising_since 2004 → 1995
- Verification 2026-09-01: flag_unresolved /franchisor/business_since
- Verification 2026-09-01: correct /investment/franchise_fee_low 20000 → 25000
- Verification 2026-09-01: correct /investment/franchise_fee_high 20000 → 25000
- Verification 2026-09-01: fix_page /item20/projected_openings_next_year 90 → 91
- Verification 2026-09-01: fix_page /item20/signed_not_open 90 → 91
- Verification 2026-09-01: fix_page /risk/noncompete 64 → 66
We do not host or redistribute FDD PDFs. Search the registry linked above by franchisor name to obtain the document. Found an error? Report a correction with the field and the primary source.
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