How Much Does a Dave’s Hot Chicken Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$620K – $2.0M
Franchise Fee
$40K
Royalty
6.0%
Ad Fund
4.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Dave’s Hot Chicken is $40K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Dave’s Hot Chicken franchise requires a total investment of $620K – $2.0M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $16K to $48K.
Ongoing Costs
Beyond the initial investment, Dave’s Hot Chicken franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 4.0% of gross sales. There is also a technology fee of $500.
Net Worth & Liquid Capital Requirements
Dave’s Hot Chicken requires working capital of $16K – $48K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
Dave’s Hot Chicken does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View Dave’s Hot Chicken?
SBA Loans Issued
10
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Dave’s Hot Chicken has 10 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Dave’s Hot Chicken franchise owners
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