Cheba Hut Toasted Subs Franchise FDD, Profits & Costs (2025)

Cheba Hut Toasted Subs is a standout franchise that has been delighting customers with its signature “Toasted” subs since 1998. Founded by Scott Jennings in Tempe, Arizona, the brand set out to disrupt traditional fast-casual dining with its cannabis-inspired theme. While the restaurant’s atmosphere pays homage to the cannabis culture, the food itself contains no marijuana.

Now headquartered in Colorado, Cheba Hut has grown steadily since it began franchising in 2007. Its inviting, laid-back vibe appeals to a diverse crowd, including college students, professionals, and families seeking a fun and relaxed dining experience.

The franchise stands apart with its unique approach to food, featuring hand-rolled, Parisian-style bread baked in-house and proprietary recipes that deliver bold, memorable flavors. Beyond subs, the menu offers fresh salads, creative snacks, and “munchies” that cater to customers looking for a distinctive and satisfying meal.

Initial Investment

How much does it cost to start a Cheba Hut Toasted Subs franchise? It costs on average between $591,000 – $1,295,000 to start a Cheba Hut Toasted Subs franchised restaurant.

This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.

Type of ExpenditureAmount
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

Average Revenue (AUV)

How much revenue can you make with a Cheba Hut Toasted Subs franchise? A Cheba Hut Toasted Subs franchised restaurant makes on average $1,930,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

 Cheba Hut Toasted Subs fdd item 19 extract

This compares to $832,000 yearly revenue for similar pizza franchises. Below are a few Cheba Hut Toasted Subs competitors as a comparison:

Cheba Hut Toasted Subs franchise competitors

Cheba Hut Toasted Subs Franchise Disclosure Document

Frequently Asked Questions

How many Cheba Hut Toasted Subs locations are there?

As of the latest data, Cheba Hut Toasted Subs operates 69 locations across the United States. The company continues to expand into new markets, including plans for additional locations in Virginia.

What is the total investment required to open a Cheba Hut Toasted Subs franchise?

The total investment required to open a Cheba Hut Toasted Subs franchise ranges from $591,000 to $1,295,000.

What are the ongoing fees for a Cheba Hut Toasted Subs franchise?

For a Cheba Hut Toasted Subs franchise, franchisees pay an ongoing royalty fee of 5% of net sales, which supports continued access to the brand’s systems and operations. Additionally, there is a marketing fee of 2% of monthly sales, which funds regional and national advertising efforts to promote the brand and drive customer traffic.

What are the financial requirements to become a Cheba Hut Toasted Subs franchisee?

To become a Cheba Hut Toasted Subs franchisee, candidates are typically required to have a minimum net worth of $350,000 and liquid capital of at least $50,000.

These financial prerequisites ensure that potential franchisees have the necessary resources to support the initial investment and ongoing operational expenses associated with opening and running a Cheba Hut franchise.

How much can a Cheba Hut Toasted Subs franchise owner expect to earn?

The average gross sales for a Cheba Hut Toasted Subs franchise are approximately $1.93 million per location. Assuming a 15% operating profit margin, $1.93 million yearly revenue can result in $290,000 EBITDA annually.

Who owns Cheba Hut Toasted Subs?

Cheba Hut Toasted Subs is owned by its founder, Scott Jennings, who maintains majority control of the company.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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