# Firehouse Subs Item 19 Deep Dive: $966K Median Across 665 Restaurants

> Firehouse Subs Item 19: $966K median across 665 franchised restaurants for fiscal 2024. How the brand compares to Jersey Mike's and Subway on unit economics, and what the Restaurant Brands International ownership means for franchisees.

**Last updated**: 2026-06-05
**URL**: https://vetmyfranchise.com/blog/firehouse-subs-item-19-deep-dive?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md

> **Quick answer:** Firehouse Subs' Item 19 reports a $966K median across 665 franchised restaurants for fiscal 2024. The brand sits in a mid-tier position on absolute revenue — above Subway, below Jersey Mike's. The AUV-to-investment ratio at the midpoint is ~1.0×, modest for the category. Restaurant Brands International (RBI) acquired the brand in 2021 and has driven aggressive multi-unit development; the franchise-system economics are evolving as RBI consolidates. The deal works for operators committed to multi-unit development with capacity to absorb RBI's development requirements; single-unit buyers face stronger competition for territories than five years ago.

## The Disclosure

Firehouse Subs' most recent Item 19:

| Metric | Value |
|---|---:|
| Sample size | 665 franchised restaurants |
| Sample criteria | All franchised units |
| Reporting period | Fiscal year 2024 |
| Median annual revenue | $965,687 |
| Total system units | 1,291 |
| Total investment (Item 7) | $405,350 - $1,577,750 |
| Franchise fee | $20,000 |
| Royalty rate | 6% |
| Ad fund | 4.0% to 5.0% |

The 665-restaurant sample covers the franchised system (excluding company-operated locations). Methodology is conservative. The royalty + ad fund total (10-11%) is among the higher franchisor-share structures in the sandwich category.

## The Sandwich Category Positioning

Firehouse Subs occupies a specific position in the sandwich-franchise category:

**Hot-served subs as differentiation.** Unlike Subway and Jersey Mike's, Firehouse serves its subs hot (steamed meat and cheese, toasted bread). The category sub-segment is smaller — Quizno's once led it before contracting — but the differentiation supports premium pricing.

**Public-safety brand positioning.** The brand identity is built around founder firefighter heritage, the Firehouse Subs Public Safety Foundation, and consumer brand association with first responders. The positioning is genuinely differentiated and supports brand affinity, particularly in markets with strong public-safety community presence.

**Hawaiian Bread and signature menu items.** The Hook & Ladder sub, the smokehouse meatball sub, and the hawaiian-bread platform create menu identity beyond commodity sub competition.

**Southern US strength.** The brand originated in Jacksonville, Florida and has historically over-indexed in the Southeast. Markets outside the brand's geographic strength typically produce lower AUV than the system average.

## The RBI Ownership Effect

Restaurant Brands International (the parent of [Burger King](/franchise/burger-king-company-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md), Tim Hortons, and Popeyes) acquired Firehouse Subs in December 2021 for approximately $1B. Three years into RBI ownership, the franchise system has changed in several ways:

**Aggressive multi-unit development.** RBI's franchise-development playbook emphasizes large area-development agreements (5-20+ unit commitments) over single-unit franchisees. New franchise approvals increasingly skew toward established multi-unit operators (often current [Burger King](/franchise/burger-king-company-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) or Popeyes franchisees adding Firehouse to their portfolio).

**Supply chain consolidation.** RBI has integrated Firehouse Subs into its broader supply-chain platform, producing meaningful cost-of-goods leverage. Franchisees report better cost-of-goods stability than under independent ownership.

**Technology platform standardization.** RBI's franchisee technology stack (POS, loyalty, digital ordering, delivery integration) has been deployed at Firehouse. The integration has accelerated digital revenue but introduced operational standardization that some legacy franchisees describe as constraining.

**Development pressure on existing franchisees.** Single-unit and small-multi-unit franchisees increasingly face pressure to either expand (taking on additional units) or face development restrictions on their territory. The franchisor system favors operators willing to commit to multi-unit growth.

For a prospective franchisee, the implication is that Firehouse Subs is **now an RBI-platform franchise**, not an independent brand. The deal economics and operational model should be evaluated alongside Burger King, Popeyes, and the broader RBI franchise ecosystem rather than as a standalone sandwich franchise.

## How Firehouse Subs Compares to Sandwich Peers

| Brand | Sample | Median AUV | Investment | AUV/Investment |
|---|---:|---:|---|---:|
| Firehouse Subs | 665 | $966K | $405K-$1.58M | 1.0× |
| [Jersey Mike's](/franchise/a-sub-above-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) | 2,255 | $1.29M | $186K-$1.42M | 1.6× |
| [Jimmy John's](/franchise/jimmy-johns-franchisor-spv-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) | larger | $700K-$1.0M (est.) | $300K-$800K | 1.5× |
| Subway | very large | $400K-$500K (est.) | $150K-$400K | 1.5-2× |
| Quizno's | smaller | $400K-$600K (est.) | $200K-$400K | 1.5× |
| [Penn Station](/franchise/penn-station-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) | smaller | $700K-$900K (est.) | $300K-$500K | 2× |

Firehouse Subs sits in the middle of the sandwich category on absolute revenue but produces a lower ratio than peers. The brand's higher build-out cost (hot-service infrastructure requires more kitchen equipment than cold-sub formats) and higher royalty/ad fund burden together compress the ratio compared to lower-cost competitors.

For deeper context, see our [Jersey Mike's Item 19 deep dive](/blog/jersey-mikes-item-19-deep-dive?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) and [Subway Item 19 survivorship bias](/blog/subway-item-19-survivorship-bias-explained?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md).

## Year-One Reality

A new Firehouse Subs restaurant in months 1-12 typically generates:

- Months 1-3: $65K-$95K monthly revenue (opening, awareness build)
- Months 4-6: $60K-$85K monthly revenue (normalization)
- Months 7-9: $68K-$95K monthly revenue (catering pipeline establishing)
- Months 10-12: $75K-$105K monthly revenue (approaching steady-state)
- Annualized year-one: $700K-$820K

That's 70-85% of system median. Firehouse ramps similarly to Jersey Mike's structurally — the sandwich category has short repeat-customer cycles and benefits from established brand awareness in most US markets.

Geographic location is a major variance driver. Southeast-US restaurants typically reach system median in 12-15 months. Non-Southeast restaurants may take 18-24+ months and may settle 10-20% below system median in steady state. Buyers in non-traditional markets should adjust underwriting accordingly.

## What This Means for Buyers

- **The deal is now an RBI-platform deal.** Evaluate within the context of RBI's broader franchise system, not as an independent sandwich brand. RBI's development requirements and operational standards apply.
- **Multi-unit development is the path.** Single-unit franchisees face increasing competition from multi-unit operators in attractive territories. Plan for multi-unit growth or accept that single-unit deals are harder to secure.
- **Geographic fit matters.** Southeast US trade areas produce stronger results than other regions. Non-Southeast buyers should underwrite to lower revenue expectations in early years.
- **Ratio is modest for the category.** 1.0× midpoint AUV-to-investment is competitive with full-service casual dining but below sandwich-category leaders. Underwrite conservatively.
- **Brand identity supports the premium.** Hot-served subs, public-safety positioning, and signature menu items create real customer affinity. The brand has a defensible niche, not a commodity sandwich position.

For broader category context, see our [best sandwich franchise breakdown](/blog/best-sandwich-franchises?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) and [Item 19 average vs. median](/blog/item-19-average-vs-median-survivorship-bias?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md). For brand-specific cost detail, the live [Firehouse Subs franchise page](/franchise/firehouse-of-america-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md).

<!-- brand-links-injected -->
## Brands mentioned in this post

- [Burger King](/franchise/burger-king-company-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md)
<!-- /brand-links-injected -->