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Below is an in-depth analysis and side-by-side comparison of Frullati Cafe & Bakery 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 | $145,900 - $446,000 | $575,900 - $939,700 |
Franchise Fee | $30,000 | $40,000 |
Royalty Fee | 6% | 6% |
Advertising Fee | - | 2% |
Year Founded | 1985 | 1998 |
Year Franchised | 1994 | 2002 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | 75% of then-current fee | - |
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 | 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 |
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Training | - | On-The-Job Training: 84 hours Classroom Training: 84 hours |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Building sales takes effort on many different levels - from running your business with monitored food costs, to strong operations, to local store marketing, to most importantly ensuring that you give every customer a reason to return. The Frullati Cafe Marketing Team will assist you by creating national marketing initiatives and advertising that are key to building sales. Increasing sales takes diligent effort in all areas of your business. Co-op advertising, Ad slicks, Regional advertising | Ad Templates Social media SEO Website development |
Operations |
Franchisees required to buy multiple units/master licenses; 35% of all franchisees own more than one unit Number of employees needed to run franchised unit: 6 Absentee ownership of franchise is allowed. (98% of current franchisees are owner/operators) | Absentee Ownership Allowed Number of Employees Required to Run: 15 - 20 |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | - |
International Expansion | Yes | - |