Firehouse Subs Franchise Cost 2026: $20K Fee, Formats, Fees

As of October 13, 2026, Firehouse Subs lists a $20,000 franchise fee, $405,350 to $1,577,750 to open depending on format, a 6% royalty on gross sales plus a 5% ad fund, and territory open in every U.S. state.

The fee and investment figures below come from the FDD issued March 25, 2026, not the older ranges still shown on the brand’s investment page. The every-state statement comes from its official franchise-locations page, checked October 13, 2026. Item 7 does not estimate real estate acquisition or leasing costs, so its totals are not a complete site-specific budget.

The franchise fee and ongoing fees cover different costs

Item 5 sets the standard initial franchise fee at $20,000 for a 10-year term, prorated for terms of different duration. It is due when the franchise agreement is signed and is nonrefundable.

Item 6 lists a 6% royalty on Gross Sales plus a System Fund contribution currently at 5% of Gross Sales, its stated cap. That is 11% combined before other fees. The royalty and ad fund comparison shows how recurring percentages translate into dollars on hypothetical sales.

Gross Sales includes catering and delivery. Its exclusions include bona fide customer refunds, sales of used restaurant equipment and qualifying sales taxes collected and paid to the government. The Item 6 guide explains why the sales definition matters alongside the percentage.

The 11% is not the entire recurring obligation. Item 6 also lists:

• MIS System Fee: $1,200 per year, payable even before opening.
• Digital Technology Fees: $150 per restaurant per month plus 1% of Digital Sales. The FDD defines that base separately and excludes third-party ordering-platform sales.
• Special Co-Op Contribution: none currently, but potentially up to 4% of Gross Sales.

Other transaction and contingent charges appear in Item 6. Its Accelerated Market Incentive can reduce the standard royalty by 2 percentage points for the first three years at approved qualifying restaurants developed under a Development Agreement. That conditional reduction is not included in the standard rates above.

Three formats, published separately

The 2026 FDD’s Item 7 gives these estimated initial investments:

Format	Total investment
In-line traditional	$405,350 to $875,950
In-line end cap with drive-thru	$528,159 to $1,087,050
Freestanding with drive-thru	$767,950 to $1,577,750

Each range includes the $20,000 franchise fee and $10,000 to $45,000 in additional funds for three months. Item 7, Note 5, says real estate acquisition or leasing costs cannot be estimated; purchasing land or a building is excluded. Replace that unpriced component and the other estimates with quotes for the proposed site.

The ranges overlap. An end cap does not necessarily cost more than every in-line build, and a freestanding restaurant does not necessarily cost more than every end cap. Compare the format and site assumptions before using either endpoint as a budget.

For other sandwich concepts, see Jersey Mike’s costs, Which Wich costs and Jimmy John’s versus Wayback Burgers.

Price the Firehouse format that fits your site

Our free startup-cost worksheet follows Item 7's rows for in-line, end cap or freestanding builds, so you can swap estimates for quotes. Plus the due-diligence kit.

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Territory availability and Item 12 protection

As checked October 13, 2026, the brand’s franchise-locations page states that territory is available in every U.S. state. The statement does not establish that any particular address is available or approved.

Item 12 says franchisees do not receive an exclusive territory. A traditional restaurant generally receives a protected Trade Area extending a 1-mile radius around its approved site, although the size can vary. Nontraditional locations do not receive that Trade Area. Protection depends on agreement compliance and has exceptions, including nontraditional locations, previously granted or opened restaurants, and other distribution channels. A Development Agreement does not itself grant territorial rights in its Development Area.

Read the Item 12 territory guide alongside the proposed agreement to distinguish site approval, a development area and protection from competition.

Unit counts in the 2026 FDD

Item 20, Table 1 reports 1,291 total outlets at year-end 2025: 1,249 franchised and 42 company-owned, a net increase of 43 total outlets from 1,248 at year-end 2024. These are the FDD’s system-wide table counts, not a current worldwide or combined U.S.-Canada store count. The Item 20 guide explains how to read totals alongside openings, closures and transfers.

The veteran and first responder program

The brand’s Why Firehouse Subs page, checked October 13, 2026, still advertises up to $100,000 in cash incentives per new restaurant for qualified veterans and first responders after signing a Development Agreement. Item 5 of the 2026 FDD specifies a $100,000 contribution per qualifying restaurant, subject to the program’s conditions. It is development support, not a reduction of the franchise fee.

The qualifying owner must hold more than 50% legal and beneficial ownership and control management and daily operations. Required service documentation must establish at least one year as a first responder, an honorable military discharge, or current part-time reserve service, as applicable.

The Development Agreement and Veteran and First Responder incentive addendum must be signed by December 31, 2026, with $20,000 in prepaid franchise fees for each committed restaurant. The incentive applies to qualifying restaurants opened in 2026, 2027 or 2028, subject to the agreement’s development schedule and good standing under existing agreements.

Payment is due within 60 days after the franchisor determines construction has started and confirms compliance; starting construction includes satisfying its property-control requirements. Failure to open within one year after payment can require repayment of the entire contribution at the franchisor’s discretion. If ownership falls to 50% or less, or daily management control ends, before the end of the first franchise-agreement year, the contribution must be repaid. The franchisor reserves the right to modify or terminate incentive programs.

The VetFran discount program explainer and veteran franchise incentive comparison distinguish fee discounts from other forms of support. Neither substitutes for the signed incentive terms.

Website differences and the term gap resolved

As checked October 13, 2026, the brand’s investment and FAQ pages still cite the 2025 FDD and show these older ranges. For this cost comparison, the FDD issued March 25, 2026 supplies the updated figures:

Format	Brand website, citing 2025 FDD	2026 FDD Item 7
In-line traditional	$379,650 to $795,600	$405,350 to $875,950
In-line end cap with drive-thru	$549,650 to $1,038,100	$528,159 to $1,087,050
Freestanding with drive-thru	$705,650 to $1,396,100	$767,950 to $1,577,750

The qualification figures are complementary, not contradictory. The investment page states a $150,000 liquid capital minimum; the FAQ states both $150,000 in available liquid capital and at least $300,000 in net worth. Both were checked October 13, 2026. Neither threshold replaces the opening budget.

The term and renewal details absent from those website pages are disclosed in the 2026 FDD. Item 17 gives a typical 10-year initial term and one 10-year renewal, subject to conditions. Item 6 sets the renewal fee at 50% of the then-current initial franchise fee. Renewal requirements include notice, meeting financial and operational obligations, an approved reimaging plan, refurbishment unless waived, a release and signing the then-current agreement, which can carry different terms and higher fees.

SBA Franchise Directory: Firehouse Subs appears in the SBA’s Franchise Directory file effective October 9, 2026 (SBA Franchise Identifier Code S0639; franchisor certification marked received). A listing is what a lender checks for brand eligibility; it is not an endorsement, and your own eligibility as a borrower is assessed separately. See how to check the SBA Franchise Directory.

Questions to ask about the proposed restaurant

• Which Item 7 format matches the approved site, and what are the actual real estate and construction quotes?
• Which Item 6 technology, co-op and contingent charges apply to this restaurant?
• What boundaries and reserved rights will appear in its Trade Area provisions?
• If an incentive is offered, how do its construction, opening and ownership deadlines fit the development schedule?
• What refurbishment and financial conditions must be met for renewal?

Use the full FDD and proposed agreements with a franchise attorney and accountant to evaluate these site-specific terms before signing.