McDonald's vs Cheba Hut Toasted Subs Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of McDonald's vs Cheba Hut Toasted Subs including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
McDonald's Franchise
Cheba Hut Toasted Subs Franchise
Investment $1,314,500 - $2,306,500$575,900 - $939,700
Franchise Fee $45,000$40,000
Royalty Fee 4%6%
Advertising Fee 4%+2%
Year Founded 19551998
Year Franchised 19552002
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $45K-


Business Experience Requirements
 
McDonald's Franchise
Cheba Hut Toasted Subs Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
    		• For candidates applying for a single unit agreement, you should have a credit score of 700+, liquid capital of $200,000 or more and a net worth of over $350,000. For candidates applying for multiple units, the requirements in terms of both professional backgrounds, skill sets are determined on a case-by-case basis. Candidates with strong credit are often suitable for SBA or traditional business loans that can cover up to 75% of the overall investment. Cheba Hut has relationships with lendors in the franchise space and will make the appropriate introductions during the Education Process.

    Financing Options
     
    McDonald's Franchise
    Cheba Hut Toasted Subs Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/No-/Yes
    Start-up Costs No/No-/Yes
    Equipment No/Yes-/Yes
    Inventory No/No-/Yes
    Receivables No/No-/Yes
    Payroll No/No-/Yes

    Training & Support
     
    McDonald's Franchise
    Cheba Hut Toasted Subs Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant On-The-Job Training: 84 hours Classroom Training: 84 hours
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app Ad Templates Social media SEO Website development
    Operations 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    		Absentee Ownership Allowed Number of Employees Required to Run: 15 - 20

    Expansion Plans
     
    McDonald's Franchise
    Cheba Hut Toasted Subs Franchise
    US Expansion YesYes
    Canada Expansion No-
    International Expansion Yes-

    Company Overviews

    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


    "Top   ""  "Entrepreneur

      "franchiserankingscom"                                                                                                                         
    #7 on Franchise Rankings.com                                                                                                                                                            
    #3 in Canada's top franchises.
    #3 in Franchise 500 for 2020
    #11 in Franchise 500 for 2021










    About Cheba Hut Toasted Subs

    Cheba Hut is a "Toasted" sub concept that has been curing munchies since 1998. Our Huts not only tout the best bread in the business, but our foodies "Flip the Bird" to the establishment with our homegrown food, our relaxed environment and our amazing employees; who actually enjoy rollin in our joint.
    Over the past 20 years, we have seen steady growth and today our Huts can be found in over 20 locations, across 7 states.
    Cheba Hut is the quintessential "anti-Corporation”. Since 1998, we have broken the mold of mundane fast-casual concepts and set ourselves apart by becoming the first cannabis-themed "joint”.
    Veteran Incentives  10% off franchise fee