Chiddy’s CheesesteaksFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Chiddy’s Cheesesteaks franchise requires a total initial investment of $167K – $397K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $563K[2]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $167K – $397K
- 7th pct Service Resta…
- Avg gross sales
- $563K
- 3rd pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 5
- 13th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $167K – $397K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $563K/year.
- Verdict C (Average) with a risk score of 65/100.
- Auditor disclosed a going-concern note, which 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
- CEO title
- Chief Executive Officer
- Mike Chidester
- CEO experience
- 11 yrs
- Years in role or industry
- Incorporated in
- NY
- 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.
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
- Headquarters
- NY
- Founded
- 2020
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $15K | $45K |
| Equipment, build-out, other | $122K | $322K |
| Total initial investment | $167K | $397K |
Source: Chiddy’s Cheesesteaks 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$62K
11.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $167K – $397K
- Better than avg vs category
- Liquid capital req'd
- $15K – $45K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $750 |
| Training fee | $300 |
| Transfer fee | $15K |
| Renewal fee | $6K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $563K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 5 units
- vs category median 13 · small
- Range (low → high)
- $320K→$807K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Chiddy’s Cheesesteaks Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- 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
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
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)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
No litigation disclosed in Item 3
Bankruptcy (Item 4)
Disclosed in last 7 years
Evan Deitch, COO, filed Chapter 7 bankruptcy petition on December 2, 2018. Case number 8-1878083 in U.S. Bankruptcy Court for the Eastern District of New York. Discharge entered and case closed on June 19, 2019.
Audited financials (Item 21)
Yes · KVLSM LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 rating
- 01MINORNo Item 19 financial disclosure — cannot verify if $167k-$397k investment generates positive ROI
- 02MINOROnly 5 units system-wide with unknown growth trajectory suggests minimal scale and unproven model
- 03MINORUnprotected territory creates risk of direct competition from other franchisees in same market
- 04MINOR6% royalty on gross sales (not net) means franchisee pays during unprofitable periods
- 05MINORWide investment range ($230k spread) indicates inconsistent build-out costs or hidden variables
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius/Population |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 2.5 mi |
| Territory population | 75,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Suffolk County, New York |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 55 hrs
- Training location
- Long Island, New York
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Chiddy’s Cheesesteaks · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chiddy’s Cheesesteaks franchise?
The total investment to open a Chiddy’s Cheesesteaks franchise ranges from $167K – $397K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Chiddy’s Cheesesteaks franchise owners earn?
According to Item 19 of the Chiddy’s Cheesesteaks FDD, the average gross sales per unit is $563K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Chiddy’s Cheesesteaks's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Chiddy’s Cheesesteaks (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Chiddy’s Cheesesteaks franchise locations are there?
As of their most recent FDD filing, Chiddy’s Cheesesteaks has 5 total units in the United States, including 2 franchised units and 3 company-owned units.
Is Chiddy’s Cheesesteaks a good franchise to buy?
FranchiseVerdict rates Chiddy’s Cheesesteaks as a C-grade franchise with a risk score of 65 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.