Firehouse Subs offers hot submarine-style sandwiches at affordable prices in a unique fire-fighting-themed atmosphere. It sets itself apart by emphasizing its flavorful meats and hearty portion sizes – big enough to satisfy a firefighter’s appetite.
Visit the franchise profile on Vetted Biz: https://www.vettedbiz.com/firehouse-s...
Want to speak with a franchise specialist about Firehouse Subs or another franchise? Click here: https://share.hsforms.com/1ZtNM19w4R8...
00:00 Introduction
00:17 Firehouse Subs history
00:49 Franchise fees and costs
01:05 Franchise royalties
01:31 Average sales
01:54 Recoup of investments
02:18 Recommendations when opening a Firehouse Subs franchise
02:40 When selling a Firehouse Subs franchise
03:23 Conclusion
03:49 Subscribe!
#FirehouseSubsFranchiseCostWorthOpeningOne #FirehouseSubsFranchise #VettedBiz
Firehouse Subs was founded by brothers Chris and Robin Sorenson who come from a line of police officers and firefighters and previously served as firefighters themselves. Their first location opened in Jacksonville, FL in 1994, and since they began offering franchises in 2005, they have grown to over 1,180 locations across 46 states, Puerto Rico, and Canada. The Current CEO is Don Fox, who has held that position since 2009. Before becoming CEO, Fox served as Chief Operating Officer.
As of 2020, there were 1,114 franchised outlets and 38 corporate outlets. Of the franchised outlets, the vast majority (over 1,000) were traditional restaurants, as opposed to end-cap strip mall restaurants with a drive-thru or free-standing restaurant with a drive-thru.
Firehouse Subs competes in the limited-service restaurant industry, competing with other fast-casual restaurants like Chipoltle, Panera Bread, and Panda Express. It most directly competes in this space with other restaurants specializing in submarine-style sandwiches like Subway, Jersey Mike’s, and local sub shops.
The initial Firehouse Subs Franchise Fee is $20,000. You have to pay this upfront fee when opening a Firehouse Subs franchise.
The estimated total investment necessary to begin operation of a Firehouse Subs varies depending on the characteristics of the restaurant site, as summarized below:
Traditional restaurant: $189,574 to $917,299
End-cap strip mall restaurant with a drive thru: $309,013 to $801,280
Free-standing restaurant with a drive thru: $349,420 to $997,320
The following costs are part of the upfront costs included in the initial investment for a Firehouse Subs location. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Firehouse Subs franchise in 2021.
In addition to the fees associated with opening a franchise, the Firehouse Restaurant Group requires that franchisors have a minimum of $80,000 to invest, a credit score of at least 650, along with a strong inner drive for excellence, devotion to the Firehouse Subs business, community-mindedness, and a love of subs.
See the complete franchise requirements provided on the franchisor’s webpage.
Owning a Firehouse Franchise Requires Ongoing Fees
Royalty: 6% of gross sales (reduced to 3% of gross sales during first two years of operation)
Local Advertising: 4% of gross sales
When Firehouse Subs owners sell their franchise based on the median valuation multiple for the industry of 0.31 and the average sales total from 2019 and 2020 of $734,892, the franchise would sell for $227,817. This is only about 38% of the midpoint investment of $593,447.
However, owners of multiple Firehouse Subs franchises are able to sell them at a profit. Owners of 7 Firehouse Sub franchises receiving $5,144,245 can sell their franchises at a multiple of 0.86 for $4,424,050. This is greater than their initial investment amount of $4,154,129. So, the more Firehouse Subs franchises you invest in, the greater the opportunity for profit.
Firehouse Subs has been a profitable business for the franchisor Firehouse of America, with profit margins of 6% and 8% in 2019 and 2020, respectively. They were able to increase profitability from 2019 to 2020 in large part because they were able to cut costs by 12%.
Over the last three years, Firehouse Subs has been growing at an average of 21 franchises a year. One franchise closed in 2020, but that is not surprising in a year that many restaurants across the country were forced to close due to the pandemic.
Visit the franchise profile on Vetted Biz: https://www.vettedbiz.com/firehouse-s...
Want to speak with a franchise specialist about Firehouse Subs or another franchise? Click here:
https://share.hsforms.com/1ZtNM19w4R8...
Информация по комментариям в разработке