Franchise: Firehouse Subs
Franchising Since: 1995
Headquarters: Jacksonville, Fla.
Number of Units: 889
About the Franchise
The Sorenson Brothers, both former firefighters, opened their first Firehouse Subs restaurant in Jacksonville, Fla., in 1994, and began franchising the concept just a year later.
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Approaching 1,000 locations, Firehouse Subs’ expansion is carefully calculated to optimize potential, profitability, investment, and of course, franchisees’ success. Their plans show Firehouse Subs reaching 2,000 locations by 2020.
Each Firehouse Subs franchise is decorated with firefighting memorabilia and artwork, with a menu that features hot and cold subs and salads. Featuring second-to-none sub sandwiches, and a commitment to the communities they serve, Firehouse Subs is a daily affirmation that serving good food and doing good belong together.
Financing for a Firehouse Subs franchise is available.
Breakdown of Costs
The following information is compiled from the Franchise Disclosure Document of Firehouse Subs (2013). The FDD will provide you with in-depth information regarding the costs and expenses you can plan to incur when developing a Firehouse Subs franchise.
The deposit is not refundable, but it will be applied to the initial franchise fee.
Balance of Initial Franchise Fee (Less Any Deposit): $17,500
Mural: $2,800 to $4,000
Firehouse Subs will commission a mural for your Restaurant, which you must pay to Firehouse Subs when they order it.
Training and Living Expenses During Training: $300 to $13,350
Firehouse Subs provides initial training to you and 1 other person (or up to 2 of your owners) without charge. If space is available at such training session, Firehouse Subs will provide initial training for up to 3 additional people at no charge for a total of 5 attendees. You are responsible for all travel and living expenses for trainees.
Opening Advertising: $5,000 to $10,000
Firehouse Subs requires you to conduct a market introduction advertising and promotional program within the first 12 months after the opening of the Restaurant. This requirement may be waived if your Restaurant exceeds the franchisor’s expectations for sales performance.
Real Property: $500 to $75,000
The Restaurant’s location (the “Site”) typically will be located in a strip mall that is close to retail or other commercial area. The size of a Restaurant is estimated to be between 1,700 and 2,500 square feet. The estimated rental is from $18 to $50 per square foot per year. Costs of leasehold improvements, which include floor covering, wall treatment, counters, ceilings, painting, window coverings, plumbing, electrical, carpentry, and related work and contractor’s fees, will vary significantly depending on the condition, location, and size of the Site; the demand for the Site among prospective lessees; and any construction and other allowances granted by the landlord after negotiations.
Equipment and Fixtures: $55,437 to $130,940
This item may include tables and booths, sinks, refrigerators, ovens, steamers, ventilation systems, display cases, stools, chairs, utensils, computers, POS System, a phone system and facsimile machine that meets Firehouse Subs’ specifications and standards, a desk, filing cabinets, and related office supplies for a Restaurant.
Signs: $3,200 to $19,500
The cost of signage varies depending on the size and type of signs, the size and location of the Restaurant, and any local and development requirements.
Leasehold Improvements: $40,095 to $391,000
Build-out or renovation of your Site to conform to Firehouse Subs standards includes paint, tile work, lighting, salt walls, drywall partitions, counters, and the like. The cost of these improvements will be significantly more if you select a Site with no pre-existing improvements.
Rental of Site (3 Months): $7,600 to $57,135
Opening Inventory: $5,312 to $25,556
Deposits and Prepaid Expenses: $0 to $69,400
The amount of rent and security deposit will depend on the size, condition, and location of the Site; and the demand for the Site among prospective lessees.
Business Licenses: $20 to $15,235
You must obtain business and health licenses for the operation of your Restaurant. Other considerations are, but not limited to, zoning, electrical, plumbing, fire inspection, fictitious name, occupations, and various other licenses or permits.
Insurance: $2,000 to $10,800
Insurance must be obtained to meet the minimum requirements established by the System Standards. The insurance policy must be in force and effect when the lease for your store is signed. If there is no lease (for example, you own the property), then the insurance policy must be in force and effect when you begin construction.
Misc. Expenses (3 Months): $2,000 to $100,000
This item estimates your initial start-up expenses. These expenses include payroll costs.
Additional Funds (Working Capital – 3 Months): $25,500
MIS System Fee: $100 to $1,200
The annual MIS System Fee is $1,200 and is prorated for the first year. The low end is for a Franchise Agreement signed in December and the high end is for a Franchise Agreement signed in January. It is calculated as follows: for a Franchise Agreement in December, you will pay an MIS Fee of $100 with $1,200 due in January for the following year; and for a Franchise Agreement signed in January, you will pay an MIS Fee of $1,200.
Accounting System Fee: $0 to $21,437
If you obtain legal and accounting services to help with business formation; review of contracts, financing documents, and leases; setting up of books and records; and other services. This amount varies greatly depending on the services performed and rates prevailing in your market.
TOTAL ESTIMATED INITIAL INVESTMENT UNDER THE UNIT FRANCHISE PROGRAM (EXCLUDING REAL ESTATE PURCHASE COSTS): $169,414 to $989,553
These figures are estimates in setting up a Firehouse Subs franchise and operating it for three months. It is possible to exceed costs in any of the areas above.
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