Charleys Cheesesteaks franchise startup costs run $250K–$719K for a fast-casual cheesesteak and chicken sandwich concept with 600+ locations in malls, airports, and non-traditional venues. The inline food court format keeps build-out costs lower than freestanding QSR.
Charleys Cheesesteaks franchise costs at a glance
Total investment
$250,000–$719,000
Franchise fee
$24,000
Royalty
6%
Ad / marketing fee
1%
Liquid capital required
$80,000
Net worth required
$250,000
Source: Charleys Cheesesteaks Franchise Disclosure Document (FDD) · as of 2026-07-26. Figures vary by market and site; verify against the current FDD before signing.
Key takeaways
Total estimated startup cost: $250,000–$719,000(fast-casual cheesesteaks/chicken)
Franchise fee: $24,000
Ongoing royalty: 6%; advertising fund: 1%
600+ locations in malls, airports, military bases, and food courts globally
Listed on the SBA Franchise Directory — eligible for expedited SBA loan processing
Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a Charleys Cheesesteaks franchise runs $250,000–$719,000. The inline food court format significantly reduces leasehold improvement costs relative to freestanding builds:
Franchise fee: $24,000
Leasehold improvements and build-out: $80,000–$300,000
Grill and kitchen equipment: $60,000–$160,000
Furniture and fixtures (limited in food court model): $10,000–$40,000
Signage and POS: $15,000–$35,000
Initial inventory: $5,000–$15,000
Training and travel: $8,000–$20,000
Grand opening marketing: $5,000–$15,000
Working capital (3 months): $20,000–$60,000
Professional fees, permits, insurance: $10,000–$25,000
2 Ongoing fees
Charleys charges a 6% royalty on gross sales plus a 1% advertising fund contribution, for a combined 7% of gross sales. The 1% ad fund is among the lowest in fast-casual, reflecting Charleys' venue-based traffic model — malls and airports drive foot traffic organically, reducing reliance on paid media.
3 Financing options
Charleys Cheesesteaks is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Financing paths:
SBA 7(a) loan: Covers franchise fee, leasehold improvements, grill and kitchen equipment, and working capital. The $250K–$719K range fits well within SBA 7(a) program limits for inline venues.
SBA Express loan: For lower-investment builds, the SBA Express program offers up to $500K with a faster approval timeline — useful for food court builds in the $250K–$450K range.
Equipment financing: Commercial grills and kitchen equipment can be financed separately over 5–7 years.
Working capital line of credit: Covers initial inventory, pre-opening costs, and seasonal traffic fluctuations in mall-dependent locations.
Conventional commercial loan: Multi-unit operators with strong mall or airport venue experience and a proven track record may access conventional lending.
4 Realistic ROI timeline
Food court and inline mall concepts with strong anchor tenant traffic typically target break-even within 18–30 months. Charleys' lower startup cost versus freestanding QSR concepts means less capital at risk, and mall/airport venue traffic drives lunch volume without requiring significant local marketing spend. Airport locations are higher-investment but command a premium pricing environment. Operators should model for seasonal traffic swings in mall-dependent locations.
5 Who's a good fit
Charleys suits operators with food court, quick-service, or non-traditional venue experience who understand mall/airport leasing dynamics. The lower startup cost makes it accessible to first-time franchise operators with strong operational backgrounds. Typical financial benchmarks are net worth of $250K+ and liquid capital of $80K+. Securing a strong venue — high-traffic food court or airport concourse — is the most important pre-investment decision.
6 What lenders look for in a Charleys Cheesesteaks franchise loan
DSCR 1.25×+ on venue-based revenue projections: Underwriters model year-2 EBITDA after the 7% combined fee load (6% royalty + 1% ad fund) using food court foot traffic data and comparable-unit sales comps. Anchor tenant quality and mall traffic reports are supporting documents lenders expect.
Equity injection 20–25%: SBA policy requires $50K–$180K upfront (20% of the $250K–$719K range). The lower investment floor versus freestanding QSR makes Charleys accessible to operators with moderate capital — equity can be cash or 401(k) ROBS.
Lease quality verification: Mall and airport operators require landlord approval and an executed lease before SBA funding — lenders will not close on a letter of intent alone. Secure the lease agreement before submitting the full loan package.
Net worth $250K+ / liquid capital $80K+: Charleys' thresholds are lower than freestanding QSR concepts, reflecting the lower investment range. Post-close liquidity verification is standard.
Venue type matters: Airport locations command higher investment and premium pricing but require TSA/airport authority approval layers — lenders underwrite airport and mall locations differently. Disclose the specific venue type upfront.
SBA Franchise Directory listing: Charleys is listed, eliminating the franchisor eligibility review and reducing SBA processing by 2–4 weeks.
7 Apply for franchise financing
ClearValue Lending works with fast-casual and food court franchise operators on SBA, equipment, and working capital financing. Start at small business financing or apply for franchise financing at Find my match. Your file routes to the funding partners best matched to your file.
Sources
Charleys Cheesesteaks is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. — SBA Franchise Directory
SBA 7(a) loans finance fast-casual franchise startups including leasehold improvements, grill equipment, and working capital. SBA Express loans are available up to $500,000 for smaller builds. — SBA 7(a) Loan Program
All franchise cost and fee disclosures are governed by the FTC Franchise Rule requiring a Franchise Disclosure Document (FDD) be delivered at least 14 days before signing. — FTC Franchise Rule — 16 CFR Part 436
Qualifying restaurant and kitchen equipment placed in service during the tax year may be immediately expensed under IRS Section 179. — IRS Publication 946
Frequently asked questions
How much does a Charleys Cheesesteaks franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $250,000–$719,000. The $24,000 franchise fee, leasehold improvements, and grill and kitchen equipment are the primary cost drivers. Food court and inline builds are on the lower end; full-service or airport locations trend toward the upper end.
Where are Charleys Cheesesteaks locations?
Charleys operates 600+ locations in malls, airports, military commissaries, college campuses, and food courts across the United States and internationally. The non-traditional venue strategy is a core part of the brand's growth model.
What is the Charleys Cheesesteaks royalty rate?
Charleys charges a 6% royalty on gross sales plus a 1% advertising fund contribution, for a combined 7% of gross sales.
Can I finance a Charleys Cheesesteaks franchise with an SBA loan?
Yes. Charleys is on the SBA Franchise Directory. SBA 7(a) or SBA Express can cover leased food court and inline builds within standard program limits. Grill and kitchen equipment can be financed separately via equipment lending.
What is Charleys Cheesesteaks' core menu?
Charleys' core menu centers on Philly-style cheesesteaks and grilled chicken sandwiches cooked to order on a flat-top grill, along with seasoned fries and freshly squeezed lemonade. The made-to-order grill format is the brand's primary operational differentiator.
What DSCR do lenders require for a Charleys Cheesesteaks SBA loan?
Lenders typically require DSCR of 1.25×–1.35× on stabilized-year projections. For Charleys, underwriters model year-2 food court sales after the 7% combined fee load. Providing mall traffic data and comparable-unit sales from the FDD's Item 19 financial performance representation strengthens the pro forma and shortens underwriting review time.
How much equity injection is required for a Charleys Cheesesteaks SBA loan?
SBA policy and most lender overlays require 20–25% equity injection on franchise startups. For Charleys, that's roughly $50K–$180K (20% of the $250K–$719K investment range). Equity can be cash at closing or a 401(k) rollover (ROBS structure). Lenders also require an executed venue lease before SBA loan closing — a signed lease, not just a letter of intent.
Summary:
Charleys Cheesesteaks franchise startup costs run $250K–$719K for a fast-casual cheesesteak and chicken sandwich concept with 600+ locations in malls, airports, and non-traditional venues. The inline food court format keeps build-out costs lower than freestanding QSR.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
