Franchise Deep Dive: Chiddy's Cheesesteaks Franchise Costs, Fees, Profit and Data

Think you can only get a good cheesesteak in Philly? This food truck-inspired franchise begs to differ.

By Luca Piacentini1851 Franchise Managing Editor

10:10AM • 07/04/23

LAST UPDATED: June 28, 2023

FRANCHISE WEBSITE: https://www.chiddyscheesesteaks.com/franchising/

NUMBER OF LOCATIONS: 7

REPORTED COST TO GET IN: $167,150 to $355,375

REPORTED ROI (Item 19): N/A

Chiddy's Cheesesteaks is a fast casual restaurant concept that aims to bring authentic Philly cheesesteaks to Long Island and beyond. Started as a beloved local food truck, the concept built its way up to becoming a brick-and-mortar fast casual hot spot. The brand competes against other cheesesteak concepts like Great Steak, Charley's Philly Steak and The Cheese Steak Shop.

How Many Chiddy's Cheesesteaks Locations Are There?

Chiddy’s Cheesesteaks was established in 2014 as a humble food truck. In 2017, the brand launched its second truck operation and quickly expanded, opening storefront locations in 2018 in Farmingdale and Commack, New York. The founding partners faced a steep learning curve as they ventured into the food industry and navigated the complexities of opening their first physical location. Despite some initial hurdles, they resolved to guide franchise owners to avoid similar pitfalls and decided that future expansion would be in the form of brick-and-mortar restaurants.

When the COVID-19 crisis hit in 2020, they viewed it not as a setback but as an opportunity to set in motion their long-term franchising plan. The founders successfully balanced the challenges of the pandemic, adapting to market changes and reinforcing their online ordering system.

Throughout this period, Chiddy’s Cheesesteaks found themselves becoming an increasingly popular choice among local patrons for takeout, delivery and curbside pickups. The brand caught the attention of aspiring entrepreneurs nationwide, many of whom were seeking to leave their conventional jobs in cities and corporations to fulfill their dream of owning a restaurant. Today, Chiddy’s Cheesesteaks has seven open locations throughout New York and plans to expand across the country.

What Is a Chiddy's Cheesesteaks Business Model?

Franchisees who invest in a Chiddy’s Cheesesteaks will open a fast-casual restaurant with a unique menu of cheesesteaks, homemade empanadas, gourmet hot dogs, tacos, salads and hand-cut fries. While the concept is based in Long Island, Chiddy’s Cheesesteaks franchisees can leverage relationships with Philly-based suppliers for an authentic Philly Cheesesteak no matter where they operate.

All franchise owners will open a brick-and-mortar restaurant that “brings the food truck concept indoors.” Locations need to be between 1,000 and 1,600 square feet with adequate parking and lots of drive-by traffic. Owners typically have three to five employees per shift, depending on volume and time of day.

How Much Can Chiddy's Cheesesteaks Franchise Owners Make?

Chiddy's Cheesesteaks does not have a publicly available Item 19. To learn more, contact the team about reading the Franchise Disclosure Document, which will state the total earnings of any company or franchise-owned unit as a reference.

How Much Does It Cost to Open a Chiddy's Cheesesteaks?

The total investment necessary to begin operation of a Chiddy's Cheesesteaks Franchise ranges from $167,150 to $355,375 for a single unit/territory. Additional territories are available for additional fees.

Ongoing Royalty: 6% of gross sales paid weekly
Brand Development Fund: 1% of gross sales plus $600/month franchise owner spends on local advertising/marketing
Grand Opening: $2,500
Other estimated costs include equipment, fit out, insurance deposits and three months of working capital

What Is the Franchise Fee for a Chiddy's Cheesesteaks?

The initial franchise fee is $30,000.

Who’s On Chiddy's Cheesesteaks’ Leadership Team?

What Helpful Articles Can I Read to Learn More About Chiddy's Cheesesteaks?

Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.