Dave’s Hot Chicken Franchise Cost, Revenue & Review 2026
- Investment
- $824K – $4.1M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (5)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Dave's Hot Chicken is a fast-casual franchise built on Nashville-style hot chicken tenders and sliders with build-your-own spice levels. Franchisees run restaurants, and some food trucks, managing made-to-order frying, dine-in, and online orders.
FranchiseVerdict summary · 2026
A Dave’s Hot Chicken franchise requires a total initial investment of $824K – $4.1M, including a $20K – $40K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $824K – $4.1M
- 89th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 358
- 87th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $824K – $4.1M including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better).
- GROWTHPositive: net +115 franchised outlets in the latest year (117 opened, 2 closed); 52 signed but not yet open (Item 20).
- GROWTHSystem growing at 121.7% CAGR over 3 years with 358 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Dave's Hot Chicken Franchise Co. SPV LLC
- Parent company
- DHC STE Holdco LLC / Hollywood Intermediate LLC / Hollywood Holdings LLC / Hollywood Parent LLC (Roark Capital Management-affiliated)
- FDD Item 1, page 8 of the 2026 FDD
- Ultimate parent
- Hollywood Parent LLC (Roark Capital Management-affiliated)
- FDD Item 1, page 8 of the 2026 FDD
- Predecessor
- Dave's Hot Chicken Franchise Co. LLC (DHCFC LLC)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Jim Bitticks
- Incorporated in
- Delaware
- HQ
- 600 Playhouse Alley, Unit 504, Pasadena, CA 91101
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $46.6M
- vs $27.8M prior year
Same owner · FDD Item 1, page 8
Portfolio: Roark Capital (private-equity sponsor)
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Jim Bitticks
- Headquarters
- CA
- FDD year
- 2026
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 409% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown26 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Architect / Engineer | $15K | $160K | |
| Business Licenses and Permits | $1K | $217K | |
| Construction, Remodeling and Leasehold Improvements | $475K | $2.3M | |
| Equipment | $95K | $440K | |
| Furniture, Fixtures and Decorations | $12K | $135K | |
| Smallwares | $11K | $41K | |
| Signage | $23K | $123K | |
| Graffiti and Artwork | $30K | $125K | |
| Grand Opening Kit, Menu Boards | $13K | $36K | |
| Drive-Thru, Loop Timers and Signage | $0 | $35K | |
| Computer Equipment and Information / POS Systems | $14K | $66K | |
| Office Supplies | $1K | $3K | |
| Uniforms | $2K | $13K | |
| Initial Inventory and Supplies | $20K | $75K | |
| Insurance Deposits | $2K | $12K | |
| Liquor Licensing | $0 | $3K | |
| Pre-Opening Rent | $5K | $35K | |
| Initial Training Expenses | $2K | $30K | |
| New Restaurant Opening Fee | $0 | $15K | |
| Total initial investment | $824K | $4.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $824K – $4.1M
- Bottom third — review vs category
- Liquid capital req'd
- $16K – $48K
- Top 40% of category vs category
- Franchise fee
- $20K – $40K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $170 |
| Training fee | $12K |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Inventory (initial) | $20K – $75K |
| Total fee load | 10.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Dave’s Hot Chicken makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Dave’s Hot Chicken unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 121.7% CAGR over 3 years across 358 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Dave’s Hot Chicken Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 358
- Opened
- 117
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.6%
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- +121.7%
- Net unit change over 3 years
- 3-yr CAGR
- +121.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 25
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 52
- 0.15 per open outlet · Item 20 Table 5
- Projected new
- 131
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 31 states 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.
31
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $5.1M
- Median loan
- $1.0M
- average
- Charge-off rate
- Under 10 loans (5)
- Insufficient SBA coverage: 5 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (5)
- 5-yr charge-off
- Under 10 loans (5)
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Aggressive growth-stage franchise with material financial transparency gaps, undefined unit economics, and expansion velocity that outpaces typical market maturation.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Pages p205-p214 do not contain audited financial statements. They are Exhibit E (Operations Manual Table of Contents) and Exhibit F (Franchise Disclosure Questionnaire) of the Dave's Hot Chicken Franchise Co., LLC 2024 FDD. No balance sheet, income statement, or Independent Auditor's Report is present in this page range, so no financial figures could be extracted.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 71 / 100 verdict
- 01MINORRapid expansion (87.2% YoY growth) at 169 units creates saturation risk and may indicate franchisee cannibalization in key markets
- 02MED6% royalty on undisclosed revenues provides no transparency on actual franchisee profitability or franchisor sustainability
- 03MEDHigh initial investment with no disclosed average net income creates severe visibility gap for ROI analysis
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | 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 |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 20 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Principal city closest to franchisor's principal place of business (currently Pasadena, California) |
| Jury trial waiver | Yes |
| Governing law | State where franchise is located |
| Litigation count | 4 |
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 48 hrs
- Training location
- Corporate Headquarters, Pasadena, California
- Ongoing training
- Required
- Time to open
- 11 mo
- From signing to launch
- Site selection
- franchisee (subject to franchisor review and acceptance)
- Franchisor financing
- Not offered
- Item 10
- POS system
- approved POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: approved POS system
Item 20 · call current owners
Franchisee Contacts
76 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Dave’s Hot Chicken franchise?
The total investment to open a Dave’s Hot Chicken franchise ranges from $824K – $4.1M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Dave’s Hot Chicken franchise owners earn?
Dave’s Hot Chicken makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Dave’s Hot Chicken?
Dave’s Hot Chicken is franchised by Dave's Hot Chicken Franchise Co. SPV LLC. Its parent company is DHC STE Holdco LLC / Hollywood Intermediate LLC / Hollywood Holdings LLC / Hollywood Parent LLC (Roark Capital Management-affiliated). The ultimate parent named in the FDD is Hollywood Parent LLC (Roark Capital Management-affiliated). Source: FDD Item 1, 2026 filing.
What is Item 19 in the Dave’s Hot Chicken FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Dave’s Hot Chicken FDD and qualifies whose outlets they describe.
What is Dave’s Hot Chicken's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Dave’s Hot Chicken (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 Dave’s Hot Chicken franchise locations are there?
As of their most recent FDD filing, Dave’s Hot Chicken has 358 total units in the United States, including 348 franchised units and 10 company-owned units. 117 new units were opened in the latest reporting year.
Is Dave’s Hot Chicken a good franchise to buy?
FranchiseVerdict rates Dave’s Hot Chicken as a A-grade franchise with a verdict score of 71 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
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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.