CHEBA HUT
Cheba Hut franchises operate quick-service sandwich restaurants featuring toasted submarine sandwiches, original sauces, salads, soups, chips, brownies, and other high-quality food and beverage items served in a fun, casual, and distinctive atmosphere. The franchisor, Cheba Hut Franchising, Inc., grants franchises for single or multi-unit (up to three) operations under its proprietary system, requiring franchisees to adhere to brand standards and use approved locations. The target market is the general public in a highly competitive restaurant industry.
Franchise Costs
5% royalty + 2% brand fund + up to $750/mo technology fee + up to $119/mo online ordering fee
Financial Performance
Item 19 Financial Performance
Data Based On: 73 franchised locations as per Table 1C, 'All Franchised Locations'.
* Average Net Sales ($1,966,384.03) and Median Net Sales ($1,960,217.57) are extracted directly from Table 1C, representing 'All Franchised Locations'. Note 1 on page 3 clarifies that 'Net Sales' means gross sales less complimentary meals, discounts, and sales tax, which is considered gross revenue for this extraction. Note 3 on page 3 explicitly states that the financial performance representations do not reflect costs of sales, operating expenses, or other costs/expenses to obtain net income or profit, therefore average_net_income, average_net_profit, average_ebitda, ebitda_margin_pct, and best_guess_profit_low/high are set to null. Segmented data for Top 25% and Bottom 25% (Tables 2D and 2E) includes 'Cheba Hut Businesses' which are composed of both franchised and affiliate locations open for 12+ months (as indicated by the total of 59 restaurants, which combines 57 franchised and 2 affiliate locations open for 12+ months). To adhere strictly to the rule of extracting only individual franchise unit performance data, revenue_top_quartile and revenue_bottom_quartile are set to null as they are not purely franchised data.
Extracted Item 19 Section
How CHEBA HUT Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
CHEBA HUT Current | $631K – $2.1M | $50K | 5.0% | 73 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M – $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K – $728K | $35K | 6.0% | 2,647 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+3 more states
SBA Loan History
Historical SBA 7(a) loan data for CHEBA HUT franchisees (2014 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a CHEBA HUT franchise ranges from $631,150 to $2,086,100. This includes a franchise fee of $50,000. Ongoing royalty fees are 5.0% of gross sales.
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