Firehouse Subs is expanding quickly across Canada right now, which cuts both ways for a resale buyer — a growing brand can mean a stronger territory to inherit, but it also means franchisors are more attentive to who's taking over an existing location and how much protected territory comes with it. The format's larger dine-in footprint than a typical sub-shop counter also means more leasehold improvements and seating to account for, and the brand's public-safety round-up donation program needs its own line of reconciliation at closing.
Firehouse Subs resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer sets price and structure, conditioned on franchisor consent, a lease and dine-in seating review, and confirmation of the territory attached to the location.
1–2 weeks†The franchisor reviews the proposed buyer and the deal terms, and may exercise a right of first refusal before the sale can proceed.
several weeks, typically†A franchise disclosure document may still be required for this resale — Ontario courts read the resale-disclosure exemption narrowly, so franchisor involvement in the sale can trigger it even where it's called a private deal.
assessed early†Getting to closing
The restaurant's lease needs landlord consent to assign — a larger dine-in footprint than a typical sub shop often means more leasehold improvements to account for in the assignment.
2–6 weeks†The incoming owner or a designated manager typically completes the brand's training program before or shortly after taking over.
1–3 weeks†Funds and keys change hands, seating and equipment condition is confirmed, and any outstanding public-safety round-up donation totals in the till are reconciled and settled before the sale.
1 day, once conditions are met†Official firehousesubs.ca/own-a-franchise page confirms an established Canadian restaurant network, with territory available across Canada
Ontario is among the provinces where the brand has been actively opening new restaurants, per Retail Insider coverage of its Canadian expansion
This is the first real decision in a Firehouse Subs resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The unit's kitchen equipment, dine-in seating and fixtures, leasehold improvements, inventory, and the franchise agreement's benefit, subject to franchisor consent. | The shares of the operating company — every location it holds, and everything it owes. |
| Seller's liabilities | Generally stay behind with the seller's existing corporation. | Generally come with the company, known and unknown. |
| Franchisor consent & ROFR | Required for the specific unit changing hands. | Required for the change of control itself. |
| The lease | Needs the landlord's written consent to assign — the larger dine-in footprint makes leasehold-improvement value a bigger part of the deal than in a smaller-format sub shop. | Usually stays in place, unless the lease has its own change-of-control clause. |
| Charitable round-up program | Round-up donation totals collected at the till are typically reconciled and settled to the closing date, not carried forward with the sale. | Stays with the corporation; historical program participation doesn't itself affect share value. |
| Tax angle | Buyer gets a stepped-up cost base on the assets purchased. | Seller may access the lifetime capital gains exemption on qualifying shares. |
The unit's kitchen equipment, dine-in seating and fixtures, leasehold improvements, inventory, and the franchise agreement's benefit, subject to franchisor consent.
The shares of the operating company — every location it holds, and everything it owes.
Generally stay behind with the seller's existing corporation.
Generally come with the company, known and unknown.
Required for the specific unit changing hands.
Required for the change of control itself.
Needs the landlord's written consent to assign — the larger dine-in footprint makes leasehold-improvement value a bigger part of the deal than in a smaller-format sub shop.
Usually stays in place, unless the lease has its own change-of-control clause.
Round-up donation totals collected at the till are typically reconciled and settled to the closing date, not carried forward with the sale.
Stays with the corporation; historical program participation doesn't itself affect share value.
Buyer gets a stepped-up cost base on the assets purchased.
Seller may access the lifetime capital gains exemption on qualifying shares.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single Firehouse Subs restaurant changing hands between one buyer and one seller, with a straightforward lease and territory carrying over unchanged.
Start my file →A multi-unit operator adding a location to an existing portfolio, or a resale in a fast-growing market where the franchisor's territory review needs to be worked through before terms are final.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
Not harder exactly, but the franchisor tends to pay closer attention to territory protection when a location is changing hands in a market it's actively expanding into — we confirm early whether the existing territory boundary is expected to carry over unchanged.
Donation totals collected at the till are typically reconciled and settled up to the closing date as part of the transition, rather than assumed to simply carry over with the business — it's a detail worth confirming in the purchase agreement rather than leaving informal.
It can. A larger format generally means more leasehold improvements — booths, fixtures, seating — to value and confirm ownership of, and a landlord consent process that accounts for a bigger footprint than a typical counter-service sub shop.
Possibly. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in matching a buyer to a seller can be enough to trigger a full disclosure requirement even where the deal is framed as a private resale.
It can shift how the franchisor evaluates territory and development commitments going forward, since a buyer moving toward multi-unit ownership is reviewed somewhat differently than a first-time single-location buyer. We factor that into how we structure your purchase agreement.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Firehouse Subs or its franchisor.
Tell us about your Firehouse Subs resale — we'll point you the right way and confirm the cost in writing before any work begins.