FranchiseVerdict
Chiddy’s Cheesesteaks logo
FV-00516·MODERATEStandard76

Chiddy’s Cheesesteaks

Food & Beverage - Full ServiceFranchising since 2021Website
Investment
$167K – $397K
14th pct Full Service
Avg revenue
57th pct Full Service
Royalty
6.0%
54th pct Full Service
Units
5
26th pct Full Service
SBA default

Bottom line

  • Total investment $167K – $397K including a $30K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100.
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Chiddy’s Cheesesteaks Franchising LLC
Incorporated in
New York
HQ
6 Pinewood Drive, Commack, New York 11725
Auditor
KVLSM LLP
Audited financials
Franchisor revenue
$142K
vs $111K prior year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Chiddy’s Cheesesteaks unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $167K–$397K
Working capital
$
FDD reports $15K–$45K

Unlevered ROIC · per unit

38%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$120K
EBITDA margin
16.0%
Total invested
$312K
Payback
31 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate quick-service cheesesteak restaurants, likely managing food preparation, inventory, staffing, and customer service in a limited-menu format. Day-to-day operations involve prep work, order fulfillment, point-of-sale management, and maintaining food safety standards in a small footprint.

CEO
Mike Chidester
Founded
2020
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$167K – $397K
All-in to open one unit
Liquid capital
$15K – $45K
Cash you must have on hand
Franchise fee
$30K
Royalty
6.0%
Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
5
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
3
Corporate units in the system
% franchised
40%
vs corporate-owned
Multi-unit owners
66.7%
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
+0.0%
Compounded over last 3 years
2023
2±0
Franchised units
2024
2
Franchised units
2025
2
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 1 state reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

1

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

65
Risk · 0-100
MODERATE65 / 100

Early-stage, under-scaled QSR franchise with zero financial transparency, unprotected territory, and gross-based royalties — suitable only for investors with strong due diligence and risk tolerance.

Score breakdown · what drove the 65 / 100 rating

  1. 01MINORNo Item 19 financial disclosure — cannot verify if $167k-$397k investment generates positive ROI
  2. 02MINOROnly 5 units system-wide with unknown growth trajectory suggests minimal scale and unproven model
  3. 03MINORUnprotected territory creates risk of direct competition from other franchisees in same market
  4. 04MINOR6% royalty on gross sales (not net) means franchisee pays during unprofitable periods
  5. 05MINORWide investment range ($230k spread) indicates inconsistent build-out costs or hidden variables
  6. 06MEDNo disclosed average revenue or net income — transparency concerns typical of early-stage franchises

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius/Population
Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New York

Item 11

Training & Operations

Classroom training
25 hrs
On-the-job training
55 hrs
POS system
Toast
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

2 numbers

Locked
(646) 932-••••
NY
(631) 398-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

Chiddy’s Cheesesteaks · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above