• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Only
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

23 Substantial Fees Every Firehouse Subs Franchisee Needs to Know About

Last updated on June 16, 2022 by Franchise Chatter 1 Comment
in Franchise Fees, Sandwich Franchise

Firehouse Subs Photo by gsbrown99



Learn Which Franchises Can Make You Rich

Detailed Information on Firehouse Subs’ Initial Franchise Fee, Royalty Fee + 21 Other Fees (Items 5 and 6, 2022 FDD)

  • All fees are imposed by and payable to Firehouse Subs except the local Co-Op and System Fund fees.
  • All fees are uniformly imposed and are non-refundable, except as provided below.
  • Firehouse Subs may require that you pay any or all recurring or periodic fees by electronic transfer.

1.  Application Deposit:  $2,500

  • Firehouse Subs requires prospective franchisees to pay it a deposit of $2,500 (the “Deposit”). The Deposit is not refundable, but it will be applied to the initial franchise fee.
  • Firehouse Subs holds and applies the Deposit in accordance with its Application and Deposit Agreement (the “Deposit Agreement”).
  • You must pay the Deposit when you sign the Deposit Agreement.
  • Firehouse Subs carefully evaluates all prospective franchise owners and the markets in which they want to operate. As part of this evaluation, you must work at least 50 hours in a Firehouse Subs Restaurant without compensation.
  • This work does not constitute training of any type. The Deposit helps ensure that applicants are serious before Firehouse Subs undertakes those evaluation efforts.

2.  Initial Franchise Fee:  $20,000, less the $2,500 deposit


💵America's Most Lucrative Franchises of the Year (Subscribe Now to Unlock)



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)


  • Your initial franchise fee is $20,000. You must pay the initial franchise fee in a lump sum (less the Deposit) when you sign the Franchise Agreement.
  • In consideration for this initial franchise fee, Firehouse Subs grants you a franchise to operate a Restaurant in an exclusive Territory and provide you with initial training.
  • If you do not satisfactorily complete training, Firehouse Subs will terminate the Franchise Agreement.
  • The initial franchise fee is fully earned and non-refundable. Firehouse Subs uses the fee to provide training and other services to its franchisees.

3.  Mural:  $3,000 to $4,600

  • Every Firehouse Subs Restaurant displays a mural that Firehouse Subs commissions for that Restaurant.
  • Although Firehouse Subs owns all copyrights to the artwork, you must purchase the mural either from Firehouse Subs or the artist it commissions to paint it.
  • The mural’s cost ranges from $3,000 to $4,600 and is payable when ordered. It is not refundable.

4.  Management Information System Fee:  $1,200

  • Due Date:  Payable on the 1st day of each year even if the Restaurant has not yet opened.
  • You must pay Firehouse Subs an annual Management Information System Fee (the “MIS System Fee”) of $1,200 for use of its mandated management information system (“MIS System”).
  • The MIS System Fee is due annually even if the Restaurant has not yet opened.
  • Upon signing your Agreement, you must pay Firehouse Subs a proportionate share of the MIS System Fee to cover the period from the date of the Agreement through December 31 of that year.
  • For example, if the Agreement Effective Date is August 1, then you must immediately pay Firehouse Subs $500 to cover the period August 1 through December 31.
  • The MIS System Fee is not refundable.
  • Firehouse Subs may require you to pay this MIS System Fee by electronic transfer.

5.  Area Development Program:  ½ of the initial franchise fee multiplied by the number of Restaurants scheduled to be developed

  • Firehouse Subs charges a Development Fee for you to obtain the exclusive right to open multiple Restaurants in a pre-determined area in a specific amount of time under the Development Agreement.
  • The amount paid is equal to ½ of the initial franchise fee times the number of Restaurants scheduled to be developed.
  • You must pay the Development Fee in a lump sum when you sign the Development Agreement.
  • The Development Fee is fully earned and non-refundable.
  • As an accommodation for payment of the Development Fee, the initial franchise fee for each Restaurant to be developed is reduced to ½ of the then-current initial franchise fee and is payable each time you sign a Franchise Agreement for a Restaurant to be developed under the Development Agreement.

6.  Royalty:  6% of Gross Sales, reduced to 3% of Gross Sales during the first 2 years of operation for each Incentive Restaurant you open

  • Due Date:  Payable the 3rd day of each Accounting Period.
  • “Gross Sales” are defined as the total actual gross charges for all products (food and non-food) and services sold to customers of the Restaurant for cash or credit, whether these sales are made at or from the Restaurant premises, or any other location. However, any amounts that you collect and transmit to state or local authorities as sales, use, or other similar taxes are excluded from the definition of Gross Sales.
  • “Accounting Period” is that period Firehouse Subs designates in the Manual (currently a 7-day accounting period for Royalty and Marketing calculations that runs from Monday through Sunday and a 4, 4, 5-week accounting system for financial statement purposes).
  • Firehouse Subs may require you to pay the Royalties by electronic transfer.

7.  System Fund:  not to exceed 1% of Gross Sales per Accounting Period; currently 1%


🥇Franchises Ranked by Average Revenues & Profits (Subscribe Now to Unlock)



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)


  • Due Date:  Payable the 3rd day of each Accounting Period.
  • Paid to the System Fund that Firehouse Subs has established for the creation and development of marketing, advertising, and related programs and materials on a system-wide basis. However a designated marketing area (“DMA”) may opt out of the 4% with a simple majority vote.

8.  Local Advertising:  4% of Gross Sales

  • Due Date:  Payable the 3rd day of each Accounting Period.
  • Payments to the marketing Co-Op established in your market count toward this expenditure.
  • The board of directors of the Co-Op voted to set the contribution at 4% of Gross Sales beginning the first Accounting Period in fiscal 2019, which began December 31, 2018.

9.  Additional Training:  $50 per person, per day

  • Due Date:  Before training begins.
  • Firehouse Subs trains you and 1 other person (or 2 of your owners) free. If space is available, it will also train up to 3 additional people at no charge.
  • Additional training is provided if necessary. There is no established schedule or frequency for additional training. It is provided on an as-needed basis.

10.  Refresher Training:  $100 per person, per day

  • Due Date:  30 days after billing.
  • Payable if you want to send additional Managers through the full training program.

11.  Transfer:  ½ of Firehouse Subs’ then-current initial franchise fee; $1,500 if transfer is among your owners

  • Due Date:  Prior to consummation of transfer.
  • Payable when the Franchise Agreement or a controlling interest in you is transferred.

12.  Renewal:  ¼ of Firehouse Subs’ then-current initial franchise fee


🏆Franchise Winners, Survivors and Losers Last Year (Subscribe Now to Unlock)



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)


  • Due Date:  At the time you elect to acquire a successor franchise.
  • You may elect to acquire a successor franchise during the 9th year of the Term, but no later than 180 days before expiration.

13.  MIS Fees:  to be determined; not currently charged

  • Due Date:  As incurred.
  • Firehouse Subs may charge a reasonable fee for modifications and enhancements made to any proprietary software it licenses to you or other Computer System maintenance and support services it furnishes.

14.  Audit:  cost of inspection or audit, plus travel

  • Due Date:  15 days after billing.
  • Payable only if you fail to furnish reports, supporting records, or other required information, or if sales are underreported by 2% or more.

15.  Interest:  lesser of 18% per month or highest contract rate of interest allowed by law

  • Due Date:  15 days after billing.
  • Payable on all overdue amounts.
  • The maximum interest rate in California is 10% per annum.

16.  Late Payment Penalties:  $250

  • Due Date:  Due on payment of late amount.
  • Payable on all late payments, late reports, and dishonored checks, including interest.

17.  Manual:  $100

  • Due Date:  At time of purchase.
  • Cost of replacement copy. (Note: your copy of the Manual is only on loan to you.)

18.  Management Fee:  $1,500 per week

  • Due Date:  As agreed.
  • Payable during period that Firehouse Subs’ appointed manager manages the Restaurant upon your death or disability.

19.  Costs and Attorneys’ Fees:  will vary under circumstances

  • Due Date:  As incurred.
  • Payable upon your failure to comply with the Franchise Agreement.

20.  Indemnification:  will vary under circumstances

  • Due Date:  As incurred.
  • You have to reimburse Firehouse Subs if it is held liable for claims arising from your Restaurant’s operations.

21.  Testing:  $250 per day, plus laboratory fees, professional fees, personnel travel and living expenses, and other 3rd party fees Firehouse Subs incurs

  • Due Date:  At time of request.
  • This covers the costs of testing new products or inspecting new suppliers you propose.

22.  Relocation Expenses:  costs of relocation

  • Due Date:  15 days after billing.
  • This covers the cost Firehouse Subs incurs if you want to relocate the Restaurant.

23.  Successor Extension Fee:  currently, $500 for every 2-week extension granted

  • Due Date:  As incurred.
  • If you fail to timely satisfy the deficiencies noted in Firehouse Subs’ notice to your request for a successor franchise (the “Response Notice”) prior to the expiration of your Franchise Agreement, you may request an extension.
  • If Firehouse Subs agrees to grant you an extension, you must meet the following conditions: (1) pay Firehouse Subs its then-current extension fee and (2) complete the correction of the deficiencies on or before the end of time Firehouse Subs set for the extension.

If you are looking for information on the estimated initial investment for a Firehouse Subs franchise, check out this post:   Franchise Costs:  Detailed Estimates of Firehouse Subs Franchise Costs


💰How Much Franchise Can You Afford? Use Our Free Financial Calculator



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)



Tagged as: Firehouse Subs

Reader Interactions

Comments

  1. Rochielle Bevans says

    May 24, 2018 at 4:54 pm

    Great information. Was looking at Firehouse Subs or a burger franchise like Smashburger or Burgerfi.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: FDD Talk 2016: The Martinizing Dry Cleaning Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

Next post: FDD Talk 2016: The Mister Sparky Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

Primary Sidebar

https://youtu.be/-pkxCF6_QOs

🤷‍♀️Why Work with a Franchise Broker?

A good franchise broker can help you to find the right franchise. They provide:

✅ Recommendations based on their assessment of historical financial performance (Item 19, FDD) instead of just franchise marketing materials.

✅ Franchise matches based on your goals, strengths, and passions.

✅ Demographic analysis to find franchises that could work in your area.

✅ A portfolio of franchises to meet almost any budget, interest, or goals.

✅ Referrals to other specialists, like franchise lawyers.

✅ Information on financing sources.

✅ Coaching in the due diligence process, based on experience with dozens of candidates.

✅ Help presenting yourself in the best light, to increase your chances of success.

✅ No fees for their services: franchisors pay them a success fee if an agreement is signed.

To get started, fill out this form, and a specialist from the Franchise Brokers Association will reach out to you.

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)

💰How Much Franchise Can You Afford? Use Our Free Financial Calculator

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

🚀 Daily FDD Talk Posts

Screenmobile Franchise

Papa Murphy’s Franchise

Pure Barre Franchise

Schlotzsky’s Franchise

Assisting Hands Home Care Franchise

Wireless Zone Franchise

All Dry Services Franchise

ZIPS Dry Cleaners Franchise

Domino’s Pizza Franchise

Property Management Inc. Franchise

Synergy HomeCare Franchise

Fastest Labs Franchise

Units Moving and Portable Storage Franchise

Checkers & Rally’s Franchise

ShelfGenie Franchise

Freddy’s Frozen Custard & Steakburgers Franchise

Mr. Electric Franchise

KFC Franchise

Real Property Management Franchise

Dunkin’ Franchise

RockBox Fitness Franchise

Jimmy John’s Franchise

Five Star Painting Franchise

Noodles & Company Franchise

Relax the Back Franchise

MOOYAH Franchise

Senior Helpers Franchise

Slim Chickens Franchise

Salons by JC Franchise

Teriyaki Madness Franchise

Storm Guard Roofing and Construction Franchise

Baskin-Robbins Franchise

Anytime Fitness Franchise

Blaze Pizza Franchise

Jiffy Lube Franchise

🏆 Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Salon Suites Franchises

Best Property Management Franchises

Best Laboratory Services Franchises

Best Staffing/Recruiting Franchises

Best Real Estate Franchises

Most Profitable Franchises

Top Low Cost Franchises

Starting a Business During a Recession

Franchise Chatter uses affiliate links for Franchise Help and the Franchise Brokers Association.

Franchise Chatter © 2022