The debate continues on which fast-food sector is the most popular with Americans. At first guess, most people might say burgers because of the popularity of McDonald’s, Wendy’s, and Burger King.
Lately, the fried chicken fast-food sector has caught the eye of consumers, with the popularity of Chick-fil-A, Raising Cane’s, and Popeyes.
The list of the largest fast-food chains in the U.S., based on locations, however, is led by sandwich chain Subway, with 16,177 units, followed by McDonald’s at 13,786 in the No. 2 slot and Starbucks close behind in the No. 3 spot, with 13,502, according to StatsPanda.
Despite the evidence that Americans like their fast-food sandwiches, some chains still face economic challenges, forcing them to file for bankruptcy.
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Firehouse Subs franchisee bankruptcy
Popular Firehouse Subs sandwich chain franchisee CN Holdings LLC filed for Chapter 11 bankruptcy on March 23 to reorganize its business, according to Bankruptcy Observer.
The Idaho Falls, Idaho-based franchisee filed its petition in the U.S. Bankruptcy Court for the District of Utah in Salt Lake City, listing up to $100,000 in assets and $1 million to $10 million in liabilities in its petition.
Debtor closes location
The debtor, which operates 11 Firehouse Subs franchises in Utah and Idaho, has closed one Utah location and plans to sell unprofitable locations, according to Restaurant Business Magazine.
CN Holdings plans to reorganize its business around the franchisee’s profitable restaurants, the report said.
Construction projects delayed
The franchisee’s owners, Chris Morris and Natalie Bosworth, who were formerly married, struggled with financial hardships, which included delays in construction on two new units, and faced about $2.3 million in debt.
Sales were lower than expected when the new restaurants finally opened, which destabilized the entire operation, Restaurant Business reported.
Jacksonville, Fla.-based Firehouse Subs, which currently has about 1,450 locations, was founded by former firefighters Chris Sorenson and Robin Sorenson in 1994.
Restaurant Brands International, which owns the Burger King, Popeyes, and Tim Hortons fast-food brands, acquired Firehouse Restaurant Group Inc. in November 2021, for $1 billion in an all-cash transaction.
Firehouse isn’t the only sandwich chain that has struggled this year, as Subway sandwich chain franchisee MTF Enterprises LLC filed for Chapter 11 bankruptcy protection on Jan. 21, 2026, in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania, according to PacerMonitor.
Debtor defaults on cash advance loans
MTF Enterprises, operator of 43 Subway sandwich restaurants in Maine, New Hampshire, Pennsylvania and Virginia, allegedly defaulted on cash advance loans from merchant cash advance lenders, which resulted in a lien on sales, Restaurant Dive reported.
More bankruptcies:
- Troubled automobile maker files Chapter 7 bankruptcy liquidation
- Major gambling destination files for Chapter 11 bankruptcy
- Major department store brand liquidates in Chapter 11 bankruptcy
The debtor claimed that merchant cash advance lenders “improperly seized or interfered with the collection of sales revenue,” the report said. It explained that the weekly and daily payments drawn by the lender were the primary cause of the debtor’s financial problems.
MTF’s bankruptcy filing invoked an immediate automatic stay of all legal actions against the debtor while its bankruptcy case proceeds.
Related: Major steakhouse chain closes more locations, no bankruptcy
