Trailer Birds Hot Chicken Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Trailer Birds Hot Chicken is a quick-service franchise serving Nashville-style hot chicken and crispy menu items. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Trailer Birds Hot Chicken franchise requires a total initial investment of $39K – $464K, including a $15K – $20K franchise fee and an ongoing 6.0% royalty[2]. The 2021 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2021 FDD issuance
Overview
- Investment
- $39K – $464K
- 2nd pct Service Resta…
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 0
- 0th 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 $39K – $464K including a $15K franchise fee, 6.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict D (Below average), verdict score 30/100 (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
- Virtual Brands, Inc.
- Parent company
- Dickey's Capital Group, Inc.
- CEO title
- Chief Executive Officer
- Laura Rea Dickey
- Incorporated in
- Texas
- HQ
- 18583 N. Dallas Parkway, Suite 120, Dallas, Texas 75287
- Auditor
- Carr, Riggs & Ingram, LLC
- Audited financials
- Franchisor revenue
- $54.6M
- vs $63.3M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2021
- Status as of 2021; may have been resolved in a later filing we don't yet have.
Overview
About
- CEO
- Laura Rea Dickey
- Headquarters
- TX
- Founded
- 2020
- FDD year
- 2021
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 62% below the typical quick-service restaurants franchise.
Source: FDD 2021 · Items 5–7
FDD Item 7 · 2021 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $7K | $15K |
| Equipment, build-out, other | $17K | $434K |
| Total initial investment | $39K | $464K |
Source: Trailer Birds Hot Chicken 2021 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
- $39K – $464K
- Top 40% of category vs category
- Liquid capital req'd
- $7K – $15K
- Top 40% of category vs category
- Franchise fee
- $15K – $20K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $340 |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Trailer Birds 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 Trailer Birds 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.
37%
Within 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: 2021 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 9.0% (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 Trailer Birds Hot Chicken Compares
Is the system healthy?
Source: FDD 2021 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- 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)
- Company-owned
- 0
- Corporate units in the system
- Multi-unit owners
- 6.7%
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 55
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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.
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
Pre-opening franchisor (0 units) with going_concern_note=true, but distress_is_early_stage=true so treated as minor. Financials are parent-level (Dickey's), which posted a net loss of -$7.0M but retains $13.2M net worth; the 3 class actions relate to a parent Dickey's Barbecue data breach, not this brand. No Item 19.
Litigation (Item 3)
Three putative class action lawsuits pending against DBRI and DCG related to data security incident (April 2019-October 2020) affecting payment card information at some Dickey's Barbecue Pit locations. Cases filed in Southern District of California and Northern District of Texas. Claims include negligence, privacy violations, breach of contract, unjust enrichment, CCPA violations, FTC Act violations, and state consumer protection violations. No franchisees named as defendants. Settlement agreement reached in August 2021 in Adams case and two other actions, awaiting court approval.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Carr, Riggs & Ingram, LLCⓘ 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)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 30 / 100 verdict
- 01MINORgoing_concern_note=true but distress_is_early_stage=true, is_pre_opening (0 units)
- 02MINORfinancials_are_parent_level; parent net loss -$7,012,809 but net worth $13.2M
- 03HIGHLitigation is parent Dickey's data-breach class actions, not brand-specific
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2021 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Territory radius | 1 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 30 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
Three putative class action lawsuits pending against DBRI and DCG related to data security incident (April 2019-October 2020) affecting payment card information at some Dickey's Barbecue Pit locations. Cases filed in Southern District of California and Northern District of Texas. Claims include negligence, privacy violations, breach of contract, unjust enrichment, CCPA violations, FTC Act violations, and state consumer protection violations. No franchisees named as defendants. Settlement agreement reached in August 2021 in Adams case and two other actions, awaiting court approval.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 90 hrs
- Training location
- On-site and off-site
- POS system
- Spark Point-of-Sale system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Spark Point-of-Sale system
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Trailer Birds Hot Chicken · FDD (2021) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Trailer Birds Hot Chicken franchise?
The total investment to open a Trailer Birds Hot Chicken franchise ranges from $39K – $464K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Trailer Birds Hot Chicken franchise owners earn?
Trailer Birds 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 Trailer Birds 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 Trailer Birds Hot Chicken FDD and qualifies whose outlets they describe.
What is Trailer Birds Hot Chicken's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Trailer Birds 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.
Is Trailer Birds Hot Chicken a good franchise to buy?
FranchiseVerdict rates Trailer Birds Hot Chicken as a D-grade franchise with a verdict score of 30 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
Are you the franchisor?
If you represent Trailer Birds Hot Chicken, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.