General

Industry

Food and Beverage

Category

Fast Casual Restaurant

SBA Identifier

S0363

Year of Founding

2001

Fees

Marketing Fee

2%

Royalty Fee

5%

Franchise Fee

$40,000-$40,000

Investment Range

$585K-$1.02M

Location units

Total U.S. Locations

45

U.S. Franchised Units

44

U.S. Corporate Units

1

Headquarters (City)

Fort Collins

Other

Item 19 - Franchise Financials

No

Financing Availability

-

Started Offering Franchises

2002

Issuance of FDD Data

04/18/2022

What to know about Cheba Hut franchise?

Cheba Hut franchisees operate quick-service sandwich restaurants featuring toasted submarine sandwiches, original sauces, salads, soups, chips, brownies, and other high-quality food and beverage items in a fun, causal and distinctive atmosphere ("Cheba Hut Business(es)").

Cheba Hut is based in Fort Collins, CO. Scroll down to learn more!

How much does a Cheba Hut franchise cost?

Are you wondering how much is a Cheba Hut franchise? Before starting a Cheba Hut franchise, it is important to know the franchise fee, working capital and other costs required to start the business.

The minimum investment amount required to open a Cheba Hut franchise is $584,900 and can go all the way up to $1,018,000. Keep in mind, you should also allocate additional funds to live off of while the Cheba Hut business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Cheba Hut franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Cheba Hut business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Cheba Hut franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2016 15 1 0 16
2017 16 0 1 12
2018 12 1 0 13
2019 13 3 1 14
2020 14 22 0 36
2021 36 8 0 44

Additional Details

How much does a Cheba Hut franchise owner make?

Cheba Hut franchise earnings and revenue can vary significantly from one franchisee to another.
The Cheba Hut franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Cheba Hut unfortunately does not disclose financials on how much Cheba Hut franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S.

Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, Cheba Hut does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with Cheba Hut franchisees. Do note that Cheba Hut is not alone as about 40% of franchises do not disclose franchisee financial performance.

At Vetted Biz, we suggest you to speak with 5 to 10 Cheba Hut franchisees to understand how much money they are making from their Cheba Hut business.

You should also speak to former Cheba Hut franchisees to understand why they left the system. Did they sell their Cheba Hut at a profit? Were they forced to close their Cheba Hut franchise down because it kept losing money?

What is the Cheba Hut franchise fee?

Owning a Cheba Hut franchise requires 5% royalty fee and 2% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Cheba Hut Franchise Disclosure Document

Keep in mind, there is also an initial Cheba Hut franchise fee of $40,000 that is included in the initial investment amount of $584,900 to $1,018,000. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Cheba Hut franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Cheba Hut franchise fee of $40,000.

Visit the Cheba Hut metrics tab to explore the financials for this business, royalty and marketing fees compare to other Food and Beverage franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Cheba Hut founded?

Cheba Hut started offering franchises in 2002. Cheba Hut was founded 21 years ago in 2001.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Cheba Hut locations are in the U.S.?

As of 2022, there were 44 locations across the U.S. There are also 1 corporate locations. Most Food and Beverage franchises like Cheba Hut have more franchised locations than corporate locations.

How many Cheba Hut franchises opened over the past few years?

Over the prior 3 years we have data for, Cheba Hut has opened 33 outlets throughout the U.S. Visit the Cheba Hut metrics tab to explore how the openings compare to other Food and Beverage franchises.

How many Cheba Hut franchises closed over the past few years?

Over the prior 3 years we have data for, Cheba Hut has closed 1 outlets throughout the U.S

Visit the Cheba Hut metrics tab to explore how the openings compare to other Food and Beverage franchises.

Is Cheba Hut growing? Are they opening more locations than they are closing?

The net unit growth rate for Cheba Hut over the past 3 years is 238%. Over the last year we have data for, Cheba Hut had a net unit growth rate of 22%.

Without a comparison, this number doesn’t mean much. Compare how the Cheba Hut growth rate compares to 2,000+ other franchises and Industry franchises like Cheba Hut. More info in the Cheba Hut metrics tab.

Is Cheba Hut franchise eligible for an SBA Loan?

Cheba Hut is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Cheba Hut franchise was assigned the SBA Franchise ID of S0363 on 10/01/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Cheba Hut that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is Cheba Hut a franchise in the United States?

According to the SBA, Cheba Hut meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Cheba Hut provides you with an FDD if you are in discussion to buy a Cheba Hut.

What is the Cheba Hut Franchise for Sale Rate?

The Cheba Hut systemwide health and franchisee satisfaction can be measured by the Cheba Hutfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

Cheba Hut franchise for sale rate over the past 3 years is 4%. Over the last year we have data for, Cheba Hut had a franchise for sale rate of 2%.

Without a comparison, this number doesn’t mean much. Compare how the Cheba Hut franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Cheba Hut. More info in the Cheba Hut metrics tab.

What is the Cheba Hut Franchise Failure Rate?

Cheba Hut franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Cheba Hut failure rate over the past 3 years is 2%. Over the last year we have data for, Cheba Hut had a franchise failure rate of 0%.

Without a comparison, this number doesn’t mean much. Compare how the Cheba Hut franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Cheba Hut. More info in the Cheba Hut metrics tab.

How can I find out more details on Cheba Hut franchise?

Visit the Cheba Hut metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Cheba Hut

$801,450

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Cheba Hut

5%

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Cheba Hut

$40,000

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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General

Industry

Food and Beverage

Category

Fast Casual Restaurant

SBA Identifier

S0363

Year of Founding

2001

Fees

Marketing Fee

2%

Royalty Fee

5%

Franchise Fee

$40,000-$40,000

Investment Range

$585K-$1.02M

Location units

Total U.S. Locations

45

U.S. Franchised Units

44

U.S. Corporate Units

1

Headquarters (City)

Fort Collins

Other

Item 19 - Franchise Financials

No

Financing Availability

-

Started Offering Franchises

2002

Issuance of FDD Data

04/18/2022

Detailed Franchise metrics for Cheba Hut

Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for Cheba Hut below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Growth Rate

The percentage change of total franchise units from one year to the next by franchisor.

 

1 year

3 years

Cheba Hut

157%

238%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Cheba Hut

7%

4%

Industry median

All franchises median

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Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Cheba Hut

7%

2%

Industry median

All franchises median

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Business details

Company Name

http://www.chebahut.com/

Business email

**********@******.com

Mailing address

406 N. College Avenue

State headquarters

Colorado

Owner Name

Cheba Hut

Phone

+1 (000) 0********00

City

Fort Collins

Zip code

80524
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