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Below is an in-depth analysis and side-by-side comparison of Jon Smith Subs vs Cheba Hut Toasted Subs including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $309,500 - $887,760 | $575,900 - $939,700 |
Franchise Fee | $39,500 | $40,000 |
Royalty Fee | 6% | 6% |
Advertising Fee | 3% | 2% |
Year Founded | 1988 | 1998 |
Year Franchised | 2007 | 2002 |
Term Of Agreement | 20 years | - |
Term Of Agreement | 20 years | - |
Renewal Fee | $1K | - |
Business Experience Requirements |
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Experience | - | 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 |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | -/Yes | -/Yes |
Start-up Costs | -/Yes | -/Yes |
Equipment | -/Yes | -/Yes |
Inventory | -/Yes | -/Yes |
Receivables | -/Yes | -/Yes |
Payroll | -/Yes | -/Yes |
Training & Support |
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Training | On-The-Job Training: 80 hours Classroom Training: 80 hours Additional Training: At existing store | 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 Franchisee Intranet Platform | 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 | Absentee Ownership Allowed Number of Employees Required to Run: 15 - 20 | Absentee Ownership Allowed Number of Employees Required to Run: 15 - 20 |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | - |
International Expansion | Yes | - |