Firehouse Subs franchise cost: investment, fees and the SBA default rate
Items 5, 6 and 7 · Firehouse Subs FDD 2026 · Updated 2026
A Firehouse Subs franchise costs $405,350–$875,950 in total initial investment, according to Item 7 of the brand's FDD (2026), including an initial franchise fee of $20,000 (Item 5); the ongoing royalty is 6% of sales, plus 5% of sales to the advertising fund (Item 6). On the lending side, Firehouse Subs franchisees defaulted on 8.3% of SBA 7(a) loans approved FY2010–FY2019 (30 of 361), and the average SBA loan to a Firehouse Subs franchisee in that cohort was $258,338.
| Total initial investment (Item 7) | $405,350–$875,950 |
|---|---|
| Initial franchise fee (Item 5) | $20,000 |
| Royalty (Item 6) | 6% of sales |
| Advertising fund (Item 6) | 5% of sales |
| SBA 7(a) default rate, FY2010–FY2019 | 8.3% |
| Average SBA loan, 2010s cohort | $258,338 |
| Average SBA loan since 2020 | $445,266 |
| Industry | Limited-Service Restaurants |
How much does it cost to open a Firehouse Subs franchise?
Item 7 of the FDD estimates the total initial investment at $405,350–$875,950. It is the franchisor's own estimate of what a new franchisee spends to open one unit, typically the franchise fee, equipment, premises or vehicle costs, opening inventory and an initial working-capital reserve. The low and high ends usually reflect different unit sizes, leasing versus buying, and local costs. Range is for an in-line Traditional Restaurant, excluding real estate; end-cap and free-standing drive-thru restaurants have separate, higher estimates.
What does the SBA data add?
The federal loan record adds what the FDD cannot: Firehouse Subs franchisees defaulted on 8.3% of SBA 7(a) loans approved FY2010–FY2019 (30 of 361 resolved loans), against the Limited-Service Restaurants industry average of 10.3%, according to U.S. Small Business Administration data with statuses as of June 30, 2026. Since 2020 they have taken 166 new SBA loans, of which 4 have already charged off.
Set the investment range against the loans: an average SBA loan of $258,338 against the $405,350–$875,950 investment range says roughly how much of a typical Firehouse Subs opening was debt-financed in the 2010s. The brand page has the year-by-year record and the industry comparison.
What would Firehouse Subs's royalty and ad fund cost at your sales level?
From Item 6: royalty 6% of sales, advertising fund 5%. Royalty and ad fund only · illustration. Other Item 6 fees, fixed or percentage, are not included.
| Annual sales | Royalty | Ad fund | Royalty + ad fund |
|---|---|---|---|
| $250,000 | $15,000 | $12,500 | $27,500 |
| $500,000 | $30,000 | $25,000 | $55,000 |
| $1,000,000 | $60,000 | $50,000 | $110,000 |
| $2,000,000 | $120,000 | $100,000 | $220,000 |
Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.
Frequently asked
How much does a Firehouse Subs franchise cost?
A Firehouse Subs franchise costs $405,350–$875,950 in total initial investment, according to Item 7 of the brand's FDD (2026), including an initial franchise fee of $20,000 (Item 5); the ongoing royalty is 6% of sales, plus 5% of sales to the advertising fund (Item 6). On the lending side, Firehouse Subs franchisees defaulted on 8.3% of SBA 7(a) loans approved FY2010–FY2019 (30 of 361), and the average SBA loan to a Firehouse Subs franchisee in that cohort was $258,338.
What is the Firehouse Subs franchise fee?
$20,000, per Item 5 of the FDD.
What royalty does Firehouse Subs charge?
6% of sales, plus 5% of sales to the advertising fund, per Item 6.
What is Firehouse Subs's SBA loan default rate?
8.3%: 30 of 361 SBA 7(a) loans approved FY2010–FY2019 to Firehouse Subs franchisees were charged off.
Source
Sources: Firehouse Subs Franchise Disclosure Document (2026, Wisconsin DFI filing 640423); U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Cite this page
Franchise Failure Rates (2026). Firehouse Subs franchise cost, Items 5–7, and SBA 7(a) default rate. From the Firehouse Subs FDD and U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/firehouse-subs/cost/ · Data & methodology