Dave’s Hot Chicken Franchise Cost, Revenue & Review 2026
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]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $824K – $4.1M
- 91st pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th 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 avg · 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.
- RETURNSPages 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.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better).
- 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)
- Ultimate parent
- Hollywood Parent LLC (Roark Capital Management-affiliated)
- 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
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 276% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown25 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Architect / Engineernot refundable | $14K | $50K | |
| Business Licenses and Permitsnot refundable | $1K | $30K | |
| Construction, Remodeling and Leasehold Improvementsnot refundable | $275K | $875K | |
| Equipmentnot refundable | $110K | $315K | |
| Furniture, Fixtures and Decorationsnot refundable | $12K | $100K | |
| Smallwaresnot refundable | $11K | $18K | |
| Signagenot refundable | $17K | $110K | |
| Graffiti and Artworknot refundable | $30K | $70K | |
| Grand Opening Kit, Menu Boardsnot refundable | $13K | $15K | |
| Drive-Thru, Loop Timers and Signagenot refundable | $0 | $35K | |
| Computer Equipment and Information / POS Systemsnot refundable | $14K | $40K | |
| Office Suppliesnot refundable | $1K | $3K | |
| Uniformsnot refundable | $2K | $5K | |
| Initial Inventory and Suppliesnot refundable | $20K | $50K | |
| Insurance Deposits | $2K | $4K | |
| Liquor Licensingnot refundable | $0 | $10K | |
| Pre-Opening Rentnot refundable | $5K | $20K | |
| Initial Trainingnot refundable | $12K | $23K | |
| New Restaurant Opening Feenot refundable | $0 | $15K | |
| Total initial investment | $620K | $2.0M |
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%
- percentage · 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Dave’s Hot Chicken unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
4%
Below the 30–60% attractive-franchise band
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
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.
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 average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Dave’s Hot Chicken Compares
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
- 0.7%
- 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
3-year detail · Item 20
- Opened (3yr)
- 146
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
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
- N/A
- limited sample (5 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $650,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 | none |
| 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 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
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
FDD download
Dave’s Hot Chicken · FDD (2026) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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), 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
Are you the franchisor?
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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.