Utah-Idaho Firehouse Subs Franchisee Files Chapter 11 Amid Debt, Delayed Openings

Two new Firehouse Subs locations that took too long to build and then underperformed once they finally opened set off a chain reaction that ultimately forced the company behind 11 restaurants in southeast Idaho and northern Utah into bankruptcy court.

CN Holdings, LLC, an Idaho Falls, Idaho-based Firehouse Subs franchisee, filed for Chapter 11 bankruptcy protection on March 23 in the District of Utah. The Subchapter V filing, which allows owners Chris Morris and Natalie Bosworth to retain control, indicates the restaurants will continue to operate, except for one Utah unit that has closed.

Before the filing, the couple encountered "financial hardships" that included significant delays on construction of two new units. The company accrued about $2.3 million in debt. When the restaurants finally opened, sales were slower than projected. The losses from those units proved a distraction, destabilizing the entire operation. For the crews working those locations, slow sales after a prolonged build-out is a familiar trap: delayed openings mean rushed hiring, incomplete training, and a market that has already moved on.

The Idaho Falls-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. Court schedules put the creditor count at fewer than 50. Morris did not immediately respond to requests for more information.

The debtor, which operates 11 Firehouse Subs franchises in Utah and Idaho, has closed one Utah location and plans to sell unprofitable locations. CN Holdings plans to reorganize around the franchisee's profitable restaurants. The portfolio spans southeast Idaho, with units in Idaho Falls, Pocatello, and Ammon, and northern Utah, in Layton and Salt Lake City.

The corporate structure had already been overhauled before the filing. The predecessor entities were merged into CN Holdings LLC in January "for ease of administration and management," the filing said. Court documents and reporting identify those predecessor entities as 4C&N LLC and Ignacious Endeavors LLC, along with a third entity reported as either 3C Inferno LLC or 2C Inferno LLC, a discrepancy between sources that has not been resolved from the primary filing.

Morris and Bosworth, who were formerly married, struggled with financial hardships that included delays in construction on two new units. The Subchapter V path gives them a streamlined reorganization process under the Small Business Reorganization Act, allowing them to propose a repayment plan without a creditors' committee and without ceding control of the operation while the case proceeds.

The filing arrives as the broader Firehouse Subs system is posting gains at the brand level. According to parent company Restaurant Brands International's 10-K released in February, Firehouse's systemwide sales increased 8.6% in 2025 to $1.3 billion, with same-store sales up 1% in the U.S. and net restaurant growth up 7.7% to finish with 1,449 locations. System-level growth does not insulate individual operators from the cost of a bad build, and CN Holdings is not alone. CN Holdings is among a number of franchisee group bankruptcies in recent months, including a 43-unit Subway operator and a 130-unit Popeyes franchisee. Within the RBI family specifically, two large Burger King franchisees, TOMS King with 90 units and Meridian Restaurants Unlimited with 118, filed for Chapter 11 in January and March respectively, and a 19-unit Popeyes franchisee, Premier Cajun Kings, also filed in March.

For the line cooks and sandwich artists at CN Holdings' remaining locations, the Subchapter V designation means their employer stays in business while the reorganization plays out, but the plan to sell underperforming units leaves some stores uncertain about their long-term future.