Do you want to open a quick-serve restaurant business by buying Cheba Hut Pretzel franchise? If YES, here is how much it cost to open Cheba Hut Pretzel franchise successfully. If you are looking towards opening a Cheba Hut Toasted Subs Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.

Cheba Hut Toasted Subs was founded in 1998 and they began franchising in 2002, about 18 Years ago. The current CEO is Scott Jennings and they have their corporate head office at 406 N. College Ave. Fort Collins, CO 80524, USA. As of the 2019 Franchise Disclosure Document, there are 13 franchised Cheba Hut locations in the USA. The largest region is the West with 12 franchise locations.

Cheba Hut Toasted Subs operate a quick-service sandwich restaurant featuring toasted submarine sandwiches, original sauces, salads, soups, chips, brownies, and other high-quality food and beverage items in a fun, casual and distinctive atmosphere.

Cheba Hut Toasted Subs is the quintessential “anti-corporation.” Since 1998, they have broken the mold of mundane, fast-casual concepts and set themselves apart by becoming the first marijuana themed “joint” (pun intended). They are dedicated to combining locally sourced ingredients with a chill, eclectic environment where real food is served by genuine people.

Over the past 20 years, Cheba Hut Toasted Subs have seen steady growth and today, the huts can be found in over 20 locations, across 7 states. They are proud to have created more than just a place people want to hang out at; Cheba Hut Toasted Subs have turned their customers into raving, loyal fans and they have the numbers to prove it. Their unit economics are industry-leading.

Financial Investment Required to Open Cheba Hut Pretzel Franchise

Here are areas where you are expected to spend money and the costs associated with it;

1. Initial Franchise Fee: $40,000

The Initial Franchise Fee is $40,000 for the purchase of a single Cheba Hut Toasted Subs Business. Please note that if you purchase a Multi-3 Franchise, the only additional initial cost that you will incur over the purchase of a single franchise will be the increase in Initial Franchise Fee until you open the additional Cheba Hut Toasted Subs Businesses.

The Initial Franchise Fee for a Multi-3 Franchise is $99,000 and allows you to open up to three Cheba Hut Toasted Subs Businesses. Once you open additional v Businesses, you will incur the costs listed in this Item 7 (except for the Initial Franchise Fee) at the time you open the additional Cheba Hut Businesses.

These costs may increase in the future depending on when you open the additional Cheba Hut Businesses.

2. RECON Assistance Fee: $15,000

3. Leasehold Improvements: $200,000 to $365,000

Please note that this estimate does not include any construction allowances that may be offered by your landlord. This estimate includes setup expenses you will incur in building out your location, including all costs required to set up the equipment.

Building and construction costs will vary depending upon the condition and size of the premises for your Restaurant and local construction costs.

4. Furniture, Fixtures, Decor, and Equipment: $75,000 to $125,000

This estimate involves the furniture, fixtures, and equipment you will need to open a Cheba Hut Toasted Subs Business, such as chairs, tables, casework, refrigerators, freezers, grills, a range, deep fryer, exhaust hood, and other items.

Some of these expenses will depend on the Cheba Hut Toasted Subs Business size, shipping distances, supplier chosen, and your credit history. Please note that you must purchase a custom spice rack and certain décor pieces from Cheba Hut Toasted Subs and it estimates that your cost for these items will be between $420 and $1,000.

5. Point-of-Sale Systems and Other Equipment: $8,500 to $10,000

Please note that this includes the cost of the computer hardware that will serve as your point-of-sale system.

6. Opening Team Expenses: $0 to $3,000

Please note that if Cheba Hut determines that the Opening Team must include more than three representatives or that the Opening Team must be present at the Cheba Hut Toasted Subs Business for more than 14 days, you will reimburse Cheba Hut for the travel expenses and the salaries and benefits attributable to the extra representatives and/or extra days.

Cheba Hut estimates these additional expenses to be between $1,000 and $3,000.

7. Training Expenses: $2,500 to $7,500

Please note that Cheba Hut Toasted Subs provides training at its training center in Fort Collins, Colorado or at another location designated by it. You must pay for airfare, meals, transportation costs, lodging, and incidental expenses for all initial training program attendees.

Initial training is provided at no charge for up to three people, one of which must be a principal owner; if additional initial training is required, or more people must be trained, an additional fee will be assessed.

8. Architectural and Engineering Fees: $6,000 to $12,000

9. Master Architect Fee: $4,000

Please note that this fee is paid directly to the approved supplier for floor plans, construction drawings, and oversight and ensures the uniform fit, finish, and function of the location.

10. Site Survey Fee: $1,500 to $3,500

11. Signs: $7,500 to $12,500

Please note that this estimate is for a single exterior sign. These estimates assume you purchase your exterior signage. The type and size of the signage you install will be based upon the zoning and property use requirements and restrictions. There could be an occasion where certain signage is not permitted because of zoning or use restrictions.

12. Restaurant Lease Payments – 3 Months: $9,000 to $18,000

Your actual rent payments may vary depending upon your location and your market’s retail lease rates. Restaurants will typically be 1,800 square feet to 2,500 square feet in size. Restaurants are typically located in free standing outlets, shopping malls, and strip malls.

Please note that if you purchase instead of lease the premises for your Restaurant, then the purchase price, down payment, interest rates, and other financing terms will determine your monthly mortgage payments.

13. Miscellaneous: $3,000 to $8,000

Please note that these fees include such items as security, utility and license deposits, feasibility studies, impact fees, insurance premiums for three months, and professional services such as attorneys and accountants. You should check with the local agency that issues building permits to determine what impact, connection, or other site development fees might be required for the specific site for your Cheba Hut Toasted Subs Business.

14. Grand Opening Celebration: $2,500 to $4,000

Please note that you must host a one-day grand opening celebration (“Grand Opening Celebration”) at your Cheba Hut Toasted Subs Business within 14 days of opening and spend a minimum of $2,500 on the Grand Opening Celebration.

Cheba Hut Toasted Subs will provide advertising and promotional materials for the Grand Opening Celebration.

15. Additional Funds – 3 Months: $30,000 to $60,000

These amounts represent Cheba Hut’s estimate of the amount needed to cover your expenses for the initial three-month start-up phase of your Cheba Hut Toasted Subs Business. They include payroll, uniforms, administrative, janitorial, maintenance, utilities, and other items.

Please note that these figures do not include standard pre-opening expenses, Royalties or advertising fees payable under the Franchise Agreement, or debt service, and assume that none of your expenses are offset by any sales generated during the start-up phase.

  1. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
  2. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date:  As incurred.)

Payable to Cheba Hut Toasted Subs if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Cheba Hut Toasted Subs is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: 10 percent off franchise fee
  2. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  3. Financial Assistance: Cheba Hut Toasted Subs has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.

In Summary,

  • Initial Investment: $404,500 – $687,500
  • Net-worth Requirement: $404,500 – $687,500
  • Liquid Cash Requirement: $250,000
  • Ongoing Initial Franchise Fee: $40,000 – $40,000
  • Ongoing Royalty Fee: 6 percent
  • Ad Royalty Fee: 2 percent.
How Much Does It Cost to Open Cheba Hut Pretzel Franchise?