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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
5% royalty + 2% brand fund + up to $750/mo technology fee + up to $119/mo online ordering fee
Franchise Stats
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 to Other Fast Food Franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
CHEBA HUT Current | $631K - $2.1M | $50K | 5.0% | 73 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| 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 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 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
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a CHEBA HUT franchise?
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.
How much revenue does a CHEBA HUT franchise make?
According to the 2025 FDD, the average gross revenue for a CHEBA HUT franchise is $1,966,384.03. The median revenue is $1,960,217.57.
How many CHEBA HUT franchise locations are there?
As of the 2025 FDD, CHEBA HUT has 73 franchise locations. The company has been franchising since 2002.
Can you get an SBA loan for a CHEBA HUT franchise?
Yes, SBA loans are available for CHEBA HUT franchises. Historical data shows 24 SBA 7(a) loans have been approved for CHEBA HUT franchisees, with an average loan amount of $617,529. The historical default rate is 0.0%.
Is CHEBA HUT a good franchise to buy?
CHEBA HUT shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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