The Original Hot ChickenFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A The Original Hot Chicken franchise requires a total initial investment of $215K – $698K, including a $25K franchise fee and an ongoing 6.0% royalty[2]. Per the 2023 FDD, average unit revenue was $23K[2]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $215K – $698K
- 36th pct Service Resta…
- Avg gross sales
- $23K
- 0th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 1
- 3rd pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
At 0.0x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $215K – $698K including a $25K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $23K/year.
- Verdict D (Below Average) with a risk score of 71/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- TOHC Franchising LLC
- Parent company
- TOHC Strategic Company LLC
- Ultimate parent
- Dandle Ventures LLC
- CEO title
- Executive Chairman
- Aziz Hashim
- Incorporated in
- DE
- HQ
- 2859 Paces Ferry Road, Suite 412, Atlanta, Georgia 30339
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Franchisees operate quick-service restaurants specializing in hot chicken sandwiches and related menu items. Day-to-day operations include food preparation, customer service, inventory management, and staff supervision in a limited-service format. The model targets fast-casual diners seeking spicy chicken offerings.
- CEO
- Aziz Hashim
- Headquarters
- GA
- Founded
- 2023
- FDD year
- 2023
- States available
- 1
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $10K | $50K |
| Equipment, build-out, other | $180K | $623K |
| Total initial investment | $215K | $698K |
Source: The Original Hot Chicken 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$3K
14.0% margin
Unlevered ROIC
1%
EBITDA / total invested capital
Payback
152.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $215K – $698K
- Better than avg vs category
- Liquid capital req'd
- $10K – $50K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Training fee | $300 |
| Transfer fee | $13K |
| Renewal fee | $13K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $23K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Actual sales of company-owned outlets
- Sample size
- 2 units
- vs category median 28 · small
- Range (low → high)
- $4K→$42K
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
Revenue is only 0.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How The Original Hot Chicken Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 3.8%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 9
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Single-unit franchise with going concern status, no financial transparency, and no growth track record presents extreme execution and franchisor stability risks.
Litigation (Item 3)
No litigation information disclosed in Item 3
Bankruptcy (Item 4)
Disclosed in last 7 years
Two bankruptcy filings disclosed: (1) Ruby Tuesday, Inc. et al. - Chapter 11 filed October 7, 2020 in U.S. Bankruptcy Court, District of Delaware (Case Nos. 1:20-BK-12456 to 124507); reorganization plan effective February 24, 2021; case closed December 10, 2021. Principal addresses: 333 East Broadway Avenue, Maryville, TN 37804 and 4170 Ashford Dunwoody Road, Suite #390, Atlanta, GA 30319. (2) Buyk Corp - Chapter 11 filed March 17, 2022 in U.S. Bankruptcy Court, Southern District of New York (Case No. 22-10328); converted to Chapter 7 on October 31, 2022; claims period ended March 27, 2023; case not yet discharged. Principal address: 360 West 31st Street, Floor 6, New York, NY 10001.
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
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 rating
- 01HIGHGoing Concern issue — franchisor may have serious financial/operational viability problems
- 02MINOROnly 1 operating unit — no proven system scalability or multi-unit success track record
- 03MINORNo financial disclosure (Item 19) — cannot validate $215K-$698K investment ROI claims
- 04MINORWide investment range ($482K spread) — suggests inconsistent unit economics or undefined costs
- 05MINORUnknown unit growth trajectory — signals stagnation or potential contraction
- 06MINORMinimal franchise fee ($25K) relative to total investment — may indicate franchisor under-capitalization
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 |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Atlanta, Georgia |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 38 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Original Hot Chicken · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Original Hot Chicken franchise?
The total investment to open a The Original Hot Chicken franchise ranges from $215K – $698K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Original Hot Chicken franchise owners earn?
According to Item 19 of the The Original Hot Chicken FDD, the average gross sales per unit is $23K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Original Hot Chicken's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Original 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 The Original Hot Chicken franchise locations are there?
As of their most recent FDD filing, The Original Hot Chicken has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is The Original Hot Chicken a good franchise to buy?
FranchiseVerdict rates The Original Hot Chicken as a D-grade franchise with a risk score of 71 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.
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.