Quick Verdict · who it fits
Cheba Hut fits first-time franchise buyers looking for a mid-scale food & beverage concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$631K - $2.1M
Franchise fee (Item 5)
$50K
Royalty (Item 6)
5% + 2% ad
System size (Item 20)
80 +7
Years in business
25+ yrs
Item 3 litigation
1 suit
Model Cheba Hut's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 5% + ad fund 2% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (5%)
—
Ad fund (2%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
83
Total units open
8
Units opened last year
0
Units closed last year
8
Net unit growth
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
How Cheba Hut ranks against 749 Food & Beverage peers we've analyzed.
Initial investment
76th pct · of 749 peers
Franchise fee
82nd pct · of 749 peers
System size
69th pct · of 749 peers
Food & Beverage industry averages
Avg investment
$589K - $1.4M
Avg franchise fee
$37K
Avg system size
261
Franchises analyzed
749
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Cheba Hut | Disclosed | $50K | $631K - $2.1M | 5% | 80 |
| Vpc PizzaSimilar price | Disclosed | $40K | $633K - $2.1M | 6% | 32 |
| Doctor's AssociatesBiggest system | None | $15K | $227K - $630K | 8% | 18,773 |
| Vintage Hospitality GroupTop-rated in category | Disclosed | $50K | $3.5M - $6.4M | 5.5% | 33 |
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Brand Analysis
Chipotle reported 4,186 company-operated restaurants and 15 international licensed restaurants as of June 30, 2026. None are franchised, there is no FDD, and there is nothing to apply for. Qdoba is the franchised version of the same order line, and its 12/25 FDD puts a traditional restaurant at $548,100 to $1,294,000.
Brand Analysis
Cracker Barrel Old Country Store, Inc. reported 656 company-operated stores in 43 states as of January 30, 2026, and the brand has never sold a franchise. Huddle House and Another Broken Egg cover the same daypart with filed FDDs, at $555,375 to $1,715,275 and $792,500 to $1,804,000.
Brand Analysis
The Häagen-Dazs Shoppe Company franchises the ice cream shops on a $30,000 fee and a 4% royalty, with a 2026 Item 7 range of $213,329 to $591,579. The trademark belongs to a different company, and the ice cream you are required to buy comes from a third.
Cheba Hut requires a $50,000 initial franchise fee and a total initial investment range of $631,150–$2,086,100, per the most recent FDD on file.
Cheba Hut franchises are sold by Cheba Hut Franchising, Inc., the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.
Yes. Cheba Hut discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.
Franchisees pay a royalty of 5% and an advertising fund contribution of 2% of weekly Net Sales on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Cheba Hut has 80 total locations, with 7 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt