Firehouse Subs Offers Cash Bonuses to Fuel Rapid Restaurant Expansion
Firehouse Subs is sweetening the pot on its franchise development incentives.
The fast-casual sandwich chain's new Development Incentive Program, available through 2028, offers qualified franchise operators $75,000 for a commitment to open one restaurant, and $100,000 per restaurant for those who develop two or more. That part is similar to an incentive program launched last year.
This year's incentive program, however, takes that offer a bit further with added potential bonuses for those who meet certain criteria.
Franchise development incentives have become more common and more robust in recent years as franchise brands like Firehouse, Potbelly, Marco's Pizza, Qdoba, Wendy's and more attempt to light the fire under growth.
Founded in 1994, Firehouse was acquired by Restaurant Brands International with growth in mind. The chain has more than 1,400 units worldwide, and last year announced a 100-unit franchise deal to grow into Mexico over the next five years.
Firehouse ended 2024 with 1,233 units in the U.S., an increase of 3.2% from the prior year, according to data from Technomic, a Restaurant Business sister brand.
For Firehouse, the goal of the expanded incentive program is to support a "strategic and sustainable pace" of expansion across North America, the company said.
This year's incentives include several options:
- The 10 in 2 Incentive includes $100,000 per restaurant opening for franchisees that develop at least 10 units during 2027 and 2028, plus a potential $500,000 achievement bonus following the 10th opening.
- The Grow A-Gain Incentive offers $150,000 per restaurant opening for operators who have a grade of "A" under the brand's operational metrics, who have not opened a restaurant in five or more years. Those franchisees must also develop at least two restaurants by Dec. 31, 2028.
- The Accelerated Market Incentive offers $150,000 per restaurant opening, plus a three-year, 2% royalty rate reduction for franchisees who develop at least three restaurants in the chain's priority markets, including New York City, Los Angeles, Chicago, Boston, Philadelphia, Seattle, Washington, D.C., Minneapolis, San Diego, Detroit, Indianapolis and Providence, Rhode Island.
"Our brand's development incentive program is truly unique and was specifically created to grow with the best franchisees," said Mike Hancock, president of Firehouse Subs, in a statement. "Firehouse Subs has real momentum with some of our strongest new restaurant growth numbers in years, and we're just getting started."
