Hangry Joe’s Hot Chicken Franchise Cost, Revenue & Review 2026
- Investment
- $306K – $518K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (7)
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]. 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: B (Above average), 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 scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $306K – $518K
- 49th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.5%
- 89th 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 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 $306K – $518K including a $35K franchise fee, 6.5% 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 B (Above average), verdict score 53/100 (higher is better).
- GROWTHNegative, pipeline stalled: 128 agreements signed but not yet open against 114 open outlets (Item 20).
- DATAThis 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.
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
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $5.1M
- vs $5.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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
- 2026
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 15% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 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 2026 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%
- typical 6–8%
- Ad fund
- Advertising Fee up to 2% of Gross Revenues (monthly), res…
- 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 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 Hangry Joe’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, ad fund rate, 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 8.5% (near the Quick-Service Restaurants median).
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.
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 medians
How Hangry Joe’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
- 114
- Opened
- 29
- Last reporting year
- Closed
- 10
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Multi-unit owners
- 6.7%
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 8
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 128
- 1.12 per open outlet · Item 20 Table 5
- Projected new
- 34
- 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).
Where the owners are · Item 20 owner list
6 current owners across 5 states.
- TN 2
- FL 1
- IN 1
- MD 1
- NC 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (7)
- Insufficient SBA coverage: 7 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 (7)
- 5-yr charge-off
- Under 10 loans (7)
- 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?
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 attaches Exhibit G, the audited financial statements of Hangry Joe's Franchising LLC for the fiscal years ended December 31, 2025, 2024 and 2023 (Baker Tilly US, LLP, April 25, 2026; the 2024 and 2023 years were audited by other auditors). FY2025 total revenues $5,120,028 (2024: $5,357,389); net income $626,968; total assets $676,733; total liabilities $2,009,038; members' deficit $(1,332,305).
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 53 / 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 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 |
| Territory type | Exclusive territory |
| 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
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 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 Hangry Joe’s Hot Chicken?
Hangry Joe’s Hot Chicken is franchised by Hangry Joe's Franchising, LLC. Source: FDD Item 1, 2026 filing.
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. 29 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 B-grade franchise with a verdict score of 53 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.
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.