Hangry Joe’s Hot ChickenFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hangry Joe’s Hot Chicken franchise requires a total initial investment of $306K – $518K, including a $35K franchise fee and an ongoing 6.5% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $306K – $518K
- 19th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.5%
- 42nd pct Service Resta…
- Units
- 51
- 36th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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 system grew 155% year-over-year. Fast growth means demand, but can strain support.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $306K – $518K including a $35K franchise fee, 6.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 42/100.
- 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
- Hangry Joe’s Franchising, LLC
- CEO title
- CEO
- Ki Young (“Derek”) Cha
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- VA
- HQ
- 9001 Braddock Rd., Suite 300, Springfield, VA 22151
- Auditor
- Kositzka, Wicks and Company
- Audited financials
- Franchisor revenue
- $793K
- vs $2.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Affiliated brands
- entities to operate company stores for a period of time
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Hangry Joe's franchisees operate quick-service restaurants serving Nashville-style hot chicken sandwiches, tenders, and sides with a focus on customizable heat levels. Day-to-day operations include food preparation, staffing, inventory management, and customer service in high-traffic casual dining or fast-casual formats. Franchisees manage P&L, local marketing, and compliance with brand standards while paying 6.5% royalties on gross revenues.
- CEO
- Ki Young (“Derek”) Cha
- Headquarters
- VA
- Founded
- 2021
- FDD year
- 2024
- States available
- 9
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $15K | $25K |
| Equipment, build-out, other | $256K | $458K |
| Total initial investment | $306K | $518K |
Source: Hangry Joe’s Hot Chicken 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $306K – $518K
- Better than avg vs category
- Liquid capital req'd
- $15K – $25K
- Better than avg vs category
- Franchise fee
- $20K – $35K
- Better than avg vs category
- Royalty
- 6.5%
- Gross Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $250 |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Inventory (initial) | $7K – $14K |
| Total fee load | 8.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Hangry Joe’s Hot Chicken Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 51
- Opened
- 31
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 6.7%
- Net growth (yr3)
- +155.0%
- Net unit change last year
3-year detail · Item 20
- Opened (3yr)
- 31
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 8
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 124
- Franchisor's next-year forecast
- Transfer rate
- 13.7%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- $2.5M
- Median loan
- $330K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
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
- 7
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapid-growth hot chicken franchise with litigation-tainted leadership, missing financial disclosures, and aggressive unit expansion raises material concerns about operational maturity and founder credibility.
Litigation (Item 3)
3 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $685,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kositzka, Wicks and Company⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 42 / 100 rating
- 01HIGHFounder Derek Cha has prior litigation history (two concluded sweetFrog matters alleging franchise law violations and fraudulent financial representations)
- 02MEDNo average revenue or net income disclosed in FDD Item 19 — prevents accurate ROI analysis and comparison to $305.5K-$518K investment
- 03MINORExplosive unit growth of 155% YoY (roughly 20 to 51 units) suggests rapid expansion that may outpace operational support capacity
- 04MEDHigh initial investment ($305.5K-$518K) combined with undisclosed profitability creates misalignment of risk/reward transparency
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 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Arbitration location | Springfield, VA |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 2 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 62 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- NAU POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NAU POS System
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hangry Joe’s Hot Chicken · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hangry Joe’s Hot Chicken franchise?
The total investment to open a Hangry Joe’s Hot Chicken franchise ranges from $306K – $518K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hangry Joe’s Hot Chicken franchise owners earn?
Hangry Joe’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 Hangry Joe’s Hot Chicken's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hangry Joe’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 Hangry Joe’s Hot Chicken franchise locations are there?
As of their most recent FDD filing, Hangry Joe’s Hot Chicken has 51 total units in the United States, including 20 franchised units and 0 company-owned units. 31 new units were opened in the latest reporting year.
Is Hangry Joe’s Hot Chicken a good franchise to buy?
FranchiseVerdict rates Hangry Joe’s Hot Chicken as a A-grade franchise with a risk score of 42 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.
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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.