Cheba Hut
Food & Beverage · Quick-Service Restaurants
- Active units
- 73
- Avg unit volume
- $2.0M
- Royalty
- 5.0%
Franchised, year-end 2024
of weekly Net Sales
About Cheba Hut
Founded in 1998, this franchise operates as a brick-and-mortar sandwich shop known for its eclectic atmosphere and locally influenced decor. The menu features signature toasted subs, proprietary bread, and a selection of snacks often referred to as munchies. Many locations include a full-service bar serving craft beer and cocktails alongside signature beverages like Kool-Aid. The business model focuses on a relaxed dining experience, serving a diverse customer base in locations ranging from stand-alone buildings to strip malls.
Key terms
- Franchise fee
$50k
- Multi-3 Franchise
Pay $130,000 total to open up to three units; no additional Initial Franchise Fee for additional units under Multi-3.
- Brand fund
2.0% of Net Sales
- Local advertising
1.0% of Net Sales
- Footprint
2,000 – 2,600 sq ft
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations80
Franchised units open at year-end
- New openings7
Gross new units opened during the calendar year
- 1-year unit growth rate9.6%
Net unit growth versus prior year
- 3-year unit CAGR17.4%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio7.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$2.3M
Reporting Group (franchise and affiliate) – 75 Cheba Hut Businesses, 2025 Net Sales average
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate-1.4%
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$1.4M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open—
Midpoint of average time from agreement to opening
- Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio1.7×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 33 of 36 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.