Hangry Joe’s Hot Chicken Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Hangry Joe's Hot Chicken is a fast-casual franchise serving Nashville-style hot chicken sandwiches and tenders with build-your-own spice levels. Franchisees run restaurants managing made-to-order frying, service, and staffing.
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). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $306K – $518K
- 50th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.5%
- 84th pct Service Resta…
- Units
- 114
- 78th 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 $306K – $518K including a $35K franchise fee, 6.5% ongoing royalty.
- RETURNSItem 19 discloses no financial performance representation of any kind; franchisor states it "does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets."
- RISKVerdict C (Average), verdict score 58/100 (higher is better).
- FLAGAuditor 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
Corporate structure & franchisor financials
- 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
- Virginia
- HQ
- 7601 Lewinsville Road, Suite 310, McLean, VA 22102
- Auditor
- KWC (Keller, Bruner & Company / KWC Certified Public Accountants), Alexandria, Virginia
- Audited financials
- Franchisor revenue
- $4.9M
- vs $793K 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
- CEO
- Ki Young (Derek) Cha
- Headquarters
- Virginia
- Founded
- 2021
- FDD year
- 2024
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 37% below the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
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
- Middle of category vs category
- Liquid capital req'd
- $15K – $25K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 6.5%
- percentage · typical 6–8%
- Ad fund
- Up to 2% of Gross Revenues (Advertising Fee); franchisor …
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.5% of gross sales |
| Training fee | $250 |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Inventory (initial) | $7K – $14K |
| Total fee load | 8.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Hangry Joe’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 Hangry Joe’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.
22%
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: 2024 FDD
Financial Performance
Item 19 discloses no financial performance representation of any kind; franchisor states it "does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets."
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 8.5% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Multi-unit rate
Only 7% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Hangry Joe’s Hot Chicken Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 114
- Opened
- 44
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Multi-unit owners
- 6.7%
3-year detail · Item 20
- Opened (3yr)
- 19
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 7
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 124
- Franchisor's next-year forecast
- Transfer rate
- 13.7%
- Owners selling to other franchisees
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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).
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
- N/A
- limited sample (7 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
- 7
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
No litigation disclosed in Item 3.
Largest disclosed settlement: $75,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KWC (Keller, Bruner & Company / KWC Certified Public Accountants), Alexandria, Virginiaⓘ Going-concern language present, but this is an early-stage franchisor with limited operating history — common for new systems and not necessarily a sign of distress.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 58 / 100 verdict
- 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
- 03MEDHigh 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
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 5 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 | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Virginia (mediation required first; Illinois, Maryland, Washington franchisees must arbitrate) |
| Jury trial waiver | No |
| Governing law | Virginia |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 62 hrs
- Training location
- At an affiliate/franchise outlet designated by franchisor
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast POS System, Restaurant 365, Digital Manager, Quickbooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS System, Restaurant 365, Digital Manager, Quickbooks Online
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 Item 19 in the Hangry Joe’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 Hangry Joe’s Hot Chicken FDD and qualifies whose outlets they describe.
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 114 total units in the United States, including 114 franchised units and 0 company-owned units. 44 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 C-grade franchise with a verdict score of 58 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
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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.