Retail Food Group (ASX:RFG) has entered a deal with Restaurants Brands International to launch Firehouse Subs Restaurants in Australia, according to a Wednesday filing with the Australian bourse.

The company will fund the first year investment through a debt drawdown of AU$7.5 million under its existing debt facilities and expects future investment cashflows to be funded from operating cashflows.

The first restaurant is expected to open in South East Queensland by late 2025, with the company planning at least 165 locations over the next decade, including 15 company-owned outlets in the first three years before shifting to a franchising model in the fourth year, the filing added.

The company will invest $4 million per year making a total of $12 million over the first three years and will increase it to $5 million per year from the fourth to the sixth year, per the filing.

The company has agreed on a 20-year development term, including options, with an option to exit after the third year, and its rights to open and franchise stores after 2027 are subject to certain conditions, the filing added.

Company shares rose past 8% in recent Wednesday trade.