Firehouse Subs Franchise Cost, Profit and Failure Rate

Firehouse Subs Franchise – Firehouse Subs is a popular sandwich chain that offers franchise opportunities to those who want to start their own business. The company was founded in 1994 and has since grown to over 1,200 locations in the United States and Canada.

Firehouse Subs Franchise

Here is some detailed information about the Firehouse Subs franchise program:

Initial Investment:

The initial investment to start a Firehouse Sub franchise ranges from $189,574 to $997,320. This includes the cost of the franchise fee, equipment, and inventory.

Franchise Fee:

The franchise fee for a Firehouse Sub franchise is $20,000. This fee is non-refundable and is due when you sign the franchise agreement.

Royalty Fees:

Firehouse Sub franchisees pay an ongoing royalty fee of 6% of gross sales. This fee is paid to the franchisor for the use of the Firehouse Subs brand and trademarks.

Marketing Fees:

Firehouse Subs franchisees also pay a marketing fee of 4% of gross sales. This fee is used to fund national and regional marketing campaigns.

Training:

Firehouse Subs franchisees are required to complete a comprehensive training program before opening their restaurant. The training program covers all aspects of running a Firehouse Subs restaurant, including food preparation, customer service, and marketing.

Support:

Firehouse Subs franchisees receive ongoing support from the franchisor. This support includes marketing assistance, operational training, and financial reporting.

Qualifications:

To be eligible for a Firehouse Subs franchise, you must have a net worth of at least $300,000 and a liquid cash requirement of at least $100,000. You must also have a strong business background and be willing to commit to running the restaurant full-time.

Benefits of Owning a Firehouse Subs Franchise:

There are many benefits to owning a Firehouse Sub franchise. Some of the benefits include:

Brand recognition: Firehouse Subs is a well-known and respected brand. This gives franchisees a built-in customer base.
Strong support from the franchisor: Firehouse Subs franchisees receive ongoing support from the franchisor, including marketing assistance, operational training, and financial reporting.
Profit potential: Firehouse Subs restaurants are typically very profitable. In 2022, the average Firehouse Subs restaurant generated over $1.2 million in revenue.

If you are interested in learning more about the Firehouse Subs franchise program, you can visit the company’s website or contact a franchise development representative.

Firehouse Subs Franchise Cost

The total initial investment to open a Firehouse Subs franchise ranges from $189,574 to $997,320. This includes the following costs:

Franchise fee: $20,000
Equipment and inventory: $119,574 to $977,320
Real estate: $150,000 to $500,000 (not included in the total initial investment range)
Other costs: $10,000 to $20,000

The initial investment amount varies depending on the size and location of the restaurant. For example, a non-traditional Firehouse Subs restaurant, such as one located in a food court or airport, will have a lower initial investment than a traditional Firehouse Subs restaurant.

Here is a breakdown of the estimated initial investment for a traditional Firehouse Subs restaurant:

Franchise fee: $20,000
Equipment and inventory: $300,000 to $500,000
Real estate: $150,000 to $500,000
Other costs: $10,000 to $20,000

Ongoing costs

In addition to the initial investment, Firehouse Subs franchisees also pay ongoing costs, such as:

Royalty fee: 6% of gross sales
Marketing fee: 4% of gross sales
Food and beverage costs
Labor costs
Rent and utilities
Other operating expenses

Firehouse Subs Franchise Profit

The profit potential for Firehouse Sub franchisees varies depending on several factors, including the location and size of the restaurant, the operating expenses, and the overall economic climate. However, Firehouse Subs is a very successful franchise system, and many franchisees are profitable.

Firehouse Subs Franchise Failure Rate

The failure rate for Firehouse Subs franchises is relatively low. According to Franchise Chatter, Firehouse Subs had a franchise failure rate of 5.6% in 2021. This means that 94.4% of Firehouse Subs franchises were successful in 2021.

The failure rate for Firehouse Sub franchises is lower than the average failure rate for all franchises. According to the Small Business Administration (SBA), the failure rate for all franchises is 20% in the first year and 50% in the first five years.

There are a number of reasons why Firehouse Subs has a low failure rate. First, the company has a strong brand and a loyal customer base. Second, the company provides franchisees with extensive training and support. Third, the company has a proven business model.

Of course, there is always a risk of failure when starting any business, including a franchise business. However, Firehouse Subs has a good track record of success, and the company takes steps to help franchisees succeed.

Here are some tips for increasing your chances of success as a Firehouse Subs franchisee:

Follow the company’s business model and operating procedures.
Provide excellent customer service.
Market your restaurant effectively.
Manage your finances carefully.

Firehouse Subs Franchise for Sale

Yes, Firehouse Subs franchises are available for sale. Firehouse Subs is actively looking for qualified franchisees to join their team. To learn more about the Firehouse Subs franchise program, you can visit the company’s website or contact a franchise development representative.

Here are some of the benefits of owning a Firehouse Subs franchise:

Strong brand recognition: Firehouse Subs is a well-known and respected brand. This gives franchisees a built-in customer base.
Proven business model: Firehouse Subs has a proven business model that has been successful for over 25 years.
Comprehensive training and support: Firehouse Subs franchisees receive comprehensive training and support from the franchisor, including marketing assistance, operational training, and financial reporting.
Potential for high profitability: Firehouse Subs franchises are typically very profitable. In 2022, the average Firehouse Subs restaurant generated over $1.2 million in revenue.

If you are interested in purchasing a Firehouse Subs franchise, here are the steps involved:

Complete an inquiry form on the Firehouse Subs website.
Speak with a franchise development representative.
Submit a franchise application.
Interview with the Firehouse Sub franchise team.
Sign a franchise agreement.

Here are some of the costs associated with purchasing a Firehouse Subs franchise:

Franchise fee: $20,000
Equipment and inventory: $119,574 to $977,320
Real estate: $150,000 to $500,000
Other costs: $10,000 to $20,000

The total investment required to purchase a Firehouse Sub franchise ranges from $189,574 to $997,320.