Cheba Hut Toasted Subs Franchise FDD, Costs & Fees (2024)
KEY FRANCHISE STATS
All you need to know about this franchise in a snapshot
Initial franchise fee
$50,000
Investment required
$591,000 - $1,295,000
Cheba Hut: Revolutionizing the Fast-Casual Experience with Toasted Subs
Cheba Hut Toasted Subs is a unique and vibrant franchise that has been serving up its distinctive “Toasted” subs since 1998. Founded by Scott Jennings in Tempe, Arizona, Cheba Hut was created to break away from the conventional fast-casual concepts by embracing a cannabis-themed atmosphere, though the food itself does not contain any marijuana.
The brand is known for its laid-back, eclectic environment that appeals to a broad customer base, from college students to families looking for a fun dining experience. Headquartered in Colorado, Cheba Hut began franchising in 2007 and has grown steadily over the years.
The franchise differentiates itself through its proprietary recipes, including hand-rolled and baked Parisian bread, and its focus on creating a relaxed and enjoyable atmosphere for both customers and employees.
Their menu offers a variety of creative subs, salads, and munchies, making them a popular choice for those looking to satisfy their cravings with something unique and delicious.
Initial investment
Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
| Type of Expenditure | Amount |
| Initial Franchise Fee | $50,000 - $50,000 |
| Leasehold Improvements | $250,000 - $650,000 |
| Furniture, Fixtures, Décor and Equipment | $145,000 - $275,000 |
| Point-of-Sale Systems and Other Equipment | $8,200 - $12,000 |
| Pre-Opening Technology Fee | $1,200 - $1,800 |
| Opening Team Expenses | $0 - $7,500 |
| Training Expenses | $15,000 - $25,000 |
| Architectural and Engineering Fees | $15,000 - $40,000 |
| Site Survey Fee | $2,500 - $3,500 |
| Signs | $7,500 - $30,000 |
| 3-Months’ Lease Payments | $18,500 - $40,000 |
| Miscellaneous | $15,000 - $30,000 |
| First Party | $3,500 - $5,000 |
| Additional Funds - 3 Months | $45,000 - $75,000 |
| Initial Inventory - Food & Bar | $7,500 - $20,000 |
| Professional Fees | $5,000 - $15,000 |
| Liquor License | $2,500 - $15,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $591,400 - $1,294,800 |
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Franchise Disclosure Document
Training
Cheba Hut Toasted Subs provides comprehensive training for its franchisees to ensure they are well-equipped to run a successful business. The training program typically includes a combination of classroom instruction and hands-on experience. Franchisees undergo training in various aspects of the business, including:
- Operational Training: This includes detailed guidance on daily operations, such as food preparation, customer service, and maintaining the unique atmosphere that Cheba Hut is known for. Franchisees learn how to prepare the proprietary recipes that are a key part of the brand’s appeal.
- Management Training: Franchisees receive training on managing staff, inventory, and finances. This includes learning the best practices for hiring, training, and retaining employees, as well as techniques for managing the financial aspects of the business effectively.
- Marketing and Community Engagement: Cheba Hut emphasizes the importance of local community involvement, so franchisees are trained on how to implement effective marketing strategies and build relationships within their communities. This also includes training on utilizing social media and other digital platforms to engage with customers.
- On-the-Job Training: Beyond classroom instruction, franchisees participate in hands-on training at an existing Cheba Hut location. This allows them to experience the day-to-day operations of a Cheba Hut franchise, ensuring they are fully prepared to open and manage their own location.
Territory Protection
Cheba Hut Toasted Subs does offer territory protection to its franchisees, ensuring that each franchisee has a defined area in which they have the exclusive right to operate. This means that no other Cheba Hut franchise can open within the designated territory, providing a level of security and market control for the franchisee.
This protection is a key part of their franchise agreement, helping to prevent market saturation and allowing franchisees to fully capitalize on their local customer base.
The specifics of the territory protection, such as the exact size and boundaries, are typically outlined in the Franchise Disclosure Document (FDD) and are tailored to the market conditions of the area.
