Firehouse Subs vs Subway
Firehouse Subs vs Subway: Firehouse Subs costs $92K to $825K to open; Subway costs $263K to $630K. Firehouse Subs has 580 units, Subway has 3,936. SBA loan history: Firehouse Subs = 698 loans (7.3% default); Subway = 6,080 loans (5.5% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Firehouse Subs vs Subway: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Firehouse Subs requires the lower minimum capital commitment ($92K vs $263K for Subway), a 65% spread. Initial franchise fees come in at $20K for Firehouse Subs versus $15K for Subway, Subway has the lower entry fee. Ongoing royalty load is 6% for Firehouse Subs and 8% for Subway, giving Firehouse Subs the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Subway operates 3,936 units to Firehouse Subs's 580, roughly 7× the system size. Subway has been operating 61 years (founded 1965) versus 32 for Firehouse Subs (founded 1994), a 29-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Subway has the deeper SBA lending track record, with 6,080 7(a) approvals compared with 698 for Firehouse Subs.
Risk Signal
SBA default rates are 7.3% for Firehouse Subs and 5.5% for Subway, Subway has the cleaner SBA loss record by 1.8 points. PeerSense FPI scores come in at 59 (Moderate) for Firehouse Subs and 60 (Moderate) for Subway, giving Subway the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 59/100 | 60/100 |
Health Tier | Moderate | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 698 | 6,080 |
SBA Volume | – | – |
Default Rate | 7.3% | 5.5% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $92K to $825K | $263K to $630K |
Franchise Fee | $20K | $15K |
Royalty Rate | 6% | 8% |
Ad Fund | 1.5% | 4.5% |
Liquid Capital | $555K | $40K |
Net Worth Required | N/A | $310K |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 580 | 3,936 |
Franchised Units | 580 | 3,936 |
Company Owned | – | – |
Term Length | 20 yrs | 20 yrs |
Brand Information
Year Founded | 1994 | 1965 |
Franchising Since | 1960 | 1974 |
Years Franchising | 66 yrs | 52 yrs |
Headquarters | Jacksonville, FL | Shelton, CT |
Category | Limited-Service Restaurants | Limited-Service Restaurants |
Website | ||
FDD Year | 2025 | 2025 |
Which Is Better, Firehouse Subs or Subway?
Lower upfront capital required
Firehouse Subs
Firehouse Subs: $92K starting · Subway: $263K starting
More SBA lender confidence
Subway
Firehouse Subs: 698 SBA loans · Subway: 6,080 SBA loans
Lower SBA default rate
Subway
Firehouse Subs: 7.3% · Subway: 5.5%
Larger system & brand presence
Subway
Firehouse Subs: 580 units · Subway: 3,936 units
Lower ongoing royalty load
Firehouse Subs
Firehouse Subs: 6% · Subway: 8%
More lender financing options
Subway
Firehouse Subs: 183 unique lenders · Subway: 831 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Firehouse Subs vs Subway: Franchise Funding Comparison
Comparing Firehouse Subs and Subway is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $92K to $825K.
Firehouse Subs has 698 SBA loans on record and Subway has 6,080. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Firehouse Subs vs Subway, Frequently Asked Questions
Which is a better franchise investment, Firehouse Subs or Subway?
How much does a Firehouse Subs franchise cost compared to Subway?
Can I finance Firehouse Subs or Subway with an SBA loan?
Which has a lower SBA default rate, Firehouse Subs or Subway?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman