Hhc
Formerly known as Houston Hot Chicken
Bottom line
- Total investment $671K – $1.8M including a $50K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one HHC unit return on the cash you put in?
Unlevered ROIC · per unit
9%
Below typical band (30–60%)
Overview
About
HHC franchisees appear to operate a service-based business model (specific category not disclosed in available data). Day-to-day operations likely involve client management, service delivery, compliance with franchisor systems, and payment of 6% gross sales royalties while managing $670K–$1.76M in initial capital investment.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapid expansion without transparent financial data, regulatory violations, and franchisor stability concerns create elevated risk despite protected territories.
Score breakdown · what drove the 62 / 100 rating
- 01MEDNo Item 19 financial performance representation disclosed — impossible to validate ROI claims or assess realistic earning potential
- 02HIGHGoing concern status is FALSE, indicating potential financial instability or undisclosed operational challenges at franchisor level
- 03HIGHState litigation in Virginia for unregistered franchise sales demonstrates regulatory non-compliance and consumer protection violations
- 04MINORExtreme unit growth of 142.9% YoY is unsustainable and suggests aggressive recruitment over franchisee success focus; system may be top-heavy
- 05MEDHigh investment range ($670K–$1.76M) combined with 6% royalties creates significant breakeven burden without disclosed average revenues
- 06MINORFranchise fee ($50K) appears low relative to total investment, suggesting hidden costs or aggressive upselling of equipment/inventory
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
37 numbers
One-time purchase · CSV download · Validation questions included
FDD download
HHC · FDD (2025) PDF