Firehouse Subs franchisee files for Chapter 11 bankruptcy

Core Viewpoint - CN Holdings, LLC, a franchisee of Firehouse Subs, has filed for Chapter 11 bankruptcy protection due to significant debt and operational challenges [1][3]. Group 1: Company Overview - CN Holdings operates Firehouse Subs restaurants in southeast Idaho and northern Utah, previously managing 11 locations but has since closed at least one [2]. - The company underwent a merger of its predecessor entities in January to streamline operations [4]. Group 2: Financial Situation - As of March, CN Holdings reported assets between $0 and $50,000 and liabilities ranging from $1 million to $10 million, with fewer than 50 creditors [3]. - The company plans to sell unprofitable locations and restructure its remaining portfolio to improve financial health [3]. Group 3: Industry Performance - Firehouse Subs' parent company, Restaurant Brands International, reported a systemwide sales increase of 8.6% in 2025, reaching $1.3 billion, with same-store sales in the U.S. up by 1% [5]. - The net restaurant growth for Firehouse Subs was 7.7%, ending the year with 1,449 locations [5]. - Firehouse Subs has achieved sub-4-year paybacks, and four-wall EBITDA has grown nearly 30% since the brand's acquisition by RBI in late 2021 [6].