About Dave's Hot Chicken Franchise
Dave's Hot Chicken is a fast casual restaurant franchise that has taken the Nashville style hot chicken trend to new heights.
The brand started as a pop up in a Los Angeles parking lot and quickly became a nationwide sensation, known for its crispy chicken tenders and sliders served at customizable spice levels.
Dave's Hot Chicken began franchising in 2019.
Dave's Hot Chicken Franchise Cost & Fees
Minimum Investment
$616K
Average Investment
$1.2M
Maximum Investment
$1.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of weekly Gross Sales (Creative Fund) + 1% of annual Gross Sales (Local Advertising) | National brand fund |
| Total Investment Range | $615,800 – $1,825,000 | Includes build-out, inventory, working capital |
The investment range of $616K–$1.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (2% of weekly Gross Sales (Creative Fund) + 1% of annual Gross Sales (Local Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Architect / Engineer | $14,000 | $44,000 |
| Business Licenses and Permits | $1,000 | $10,000 |
| Construction, Remodeling and Leasehold Improvements | $275,000 | $800,000 |
| Equipment | $110,000 | $275,000 |
| Furniture, Fixtures and Decorations | $11,500 | $100,000 |
| Smallwares | $11,000 | $15,000 |
| Signage | $17,000 | $110,000 |
| Graffiti and Artwork | $30,000 | $70,000 |
| Grand Opening Kit, Menu Boards | $12,500 | $15,000 |
| Drive-Thru, Loop Timers and Signage | $0 | $40,000 |
| Computer Equipment and Information / POS Systems | $13,500 | $40,000 |
| Office Supplies | $1,000 | $3,000 |
| Uniforms | $1,500 | $4,000 |
| Initial Inventory and Supplies | $20,000 | $50,000 |
| Insurance Deposits | $1,500 | $4,000 |
| Liquor Licensing | $0 | $10,000 |
| Pre-Opening Rent | $5,000 | $20,000 |
| Initial Training | $10,000 | $20,000 |
| New Restaurant Opening Fee | $0 | $15,000 |
| Pre-Opening Labor Expense | $15,000 | $50,000 |
| Pre-Opening/Grand Opening Advertising | $8,000 | $12,000 |
| Miscellaneous Opening Costs | $1,000 | $20,000 |
| Professional Fees | $1,000 | $10,000 |
| Additional Funds– 3 Months | $16,300 | $48,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of our then-current initial franchise fee per Dave’s Hot Chicken Restaurant |
| Renewal Fee | 50% of our then-current initial franchise fee |
| Technology Fee | $170 to $500 per week |
| Audit Fee | Cost of audit and inspection, any understated amounts, plus Interest, and any related accounting and legal expenses |
| Creative Fund Contribution | Currently 2% of weekly Gross Sales (may be increased to 4% of weekly Gross Sales) |
| Local Advertising Payment | The difference between the amount you spent on local advertising each year and your required local advertising expenditure (1%) |
| Local and Regional Advertising Cooperatives | Established by cooperative members, between 0.5% and 2% of Gross Sales |
| Site Review and Evaluation Fee | Actual costs |
| Insurance Reimbursement | Reimbursement of our costs, plus a 20% administration charge |
| Additional Training or Assistance | Then-current charge (currently $500 to $1,000 per week per person) |
| Dave’s Hot Chicken Certification Training | No charge for initial certifications; our then-current fees for additional certifications or re-certifications (currently $2,500 per person plus expenses for newly hired managers or certifications for your fourth and subsequent Dave’s Hot Chicken Restaurant, and $1,000 per person if you have a certified training store and we come to your Dave’s Hot Chicken Restaurant for training) |
| Rescheduling Expenses | Actual costs |
| Food Safety Assessment Fee | Then-current fee (currently $100 per month) |
| Mystery Shopper Fee | Then-current fee (currently $165 per month) |
| Registration for Annual Conference | Between $500 and $1,000 per attendee |
| Food Safety or Other Inspection Field Revisit | Cost of inspection (estimated to be approximately $600) plus $1,000 for the first offense and $3,000 for any additional offense |
| Supplier and Product Evaluation Fee | Costs of inspection (estimated to be approximately $100 to $500) |
| Delivery System Fee | Actual costs and administrative expenses |
| Unauthorized Advertising Fee | $500 per occurrence |
| Guest Response and Recovery Management Fee | Then-current fee (currently $200 per month) |
| Customer Issue Resolution | Reasonable costs we incur for responding to a customer complaint, which will typically be between $20 and $100 |
| Payment Service Fee | Up to 4% of total charge |
| Late Fee | $100 per occurrence, plus the lesser of the daily equivalent of 12% per year simple interest or the highest rate allowed by law (“Interest”) |
| Non-Sufficient Funds Fee | The lesser of $100 per occurrence, or the highest amount allowed by law |
| Failure to Submit Required Report Fee | $100 per occurrence and $100 per week |
| Management Fee | Our costs and expenses |
| Professional Fees and Expenses | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Relocation Fee | $5,000 |
| Transfer to Entity | Our actual costs |
| Liquidated Damages | Will vary under the circumstances |
| Broker Fees | Our actual cost of the brokerage commissions, finder’s fees, or similar charges |
| Amendment Fee | The greater of $500 or our actual attorney’s fees and administrative expenses |
| Securities Offering Fee (Area Development Franchises Only) | Our reasonable costs and expenses associated with reviewing the proposed offering |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial Training Program (18 classroom, 48 on-the-job hours), Operating Principal and Director of Operations Training (18 classroom, 48 on-the-job hours), and On-site Opening Assistance (up to 2 weeks, 78 on-the-job hours). |
| Classroom Training | 18 hours for Initial Training Program and 18 hours for Operating Principal and Director of Operations Training. |
| On-the-Job Training | 48 hours for Initial Training Program, 48 hours for Operating Principal and Director of Operations Training, and 78 hours for On-site Opening Assistance. |
| Training Location | Corporate Headquarters (currently in Pasadena, California) for classroom and most on-the-job training; Your Dave’s Hot Chicken Restaurant for on-site opening assistance. |
| Additional Training | Franchisor may require franchisees, managers, and employees to attend system-wide refresher or additional training courses, which may be optional or required. Additional training or assistance, including refresher courses, currently costs between $500 and $1,000 per attendee, per week. A fee is charged for training replacement managers. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Limited Protected Territory for Traditional Restaurants; Non-exclusive for Non-Traditional and other channels. |
| Exclusive Territory | No |
| Territory Size | Determined by franchisor, may be a specified radius, geographic area by zip codes, streets, highways, or other written description in Attachment A. |
| Description | Franchisees operate only at an accepted location. Franchisor may grant limited protected rights within a defined territory for traditional Dave's Hot Chicken Restaurants, meaning the franchisor will not open or license others to open traditional units in that territory. However, territories are not exclusive and may overlap with other franchisees. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels/competitive brands controlled by the franchisor. Non-Traditional Restaurants may not receive a territory. The franchisor reserves all rights not expressly granted, including operating outside the territory, in non-traditional venues, or other businesses under different names. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from date the Dave’s Hot Chicken Restaurant first opens to the public |
| Renewal Term | Two consecutive successor franchise agreements, each with a 10-year term |
| Renewal Fee | 50% of the then-current Initial Franchise Fee (or $20,000 if franchisor is not offering franchises) |
| Renewal Conditions | Franchisee must be in good standing, meet all obligations, undertake remodeling to current standards, not have committed three or more material defaults in any 36-month period, comply with current training requirements, and pay the renewal fee. A new franchise agreement with potentially different terms may be required. |
| Transfer Fee | 50% of our then-current initial franchise fee per Dave’s Hot Chicken Restaurant (plus a $1,000 non-refundable deposit) |
| Transfer Conditions | Transfers require franchisor's express written consent. Conditions include: proposed transferee must qualify, assume or sign a new franchise agreement, complete training and pay fees, refurbish the restaurant, provide an estoppel agreement and owner list, pay all amounts due, sign a general release and non-compete agreement (1 year, 25-mile radius), provide transfer documents and material information, and not be in default. For area developers, all (3 or fewer) or at least 50% (4 or more) of units must be transferred together. |
| Termination for Cause | Franchisor can terminate if franchisee defaults. Curable defaults (e.g., non-payment, other breaches) have 10 or 30-day cure periods. Non-curable defaults include: bankruptcy/insolvency, unsatisfied judgments, seizure/foreclosure, unreleased liens, judgments against franchisor, condemnation, imminent public health/safety danger, felony conviction, non-compliance with non-competition/confidentiality, abandonment, unauthorized assignment, repeated defaults (even if cured), violation of law (not cured in 10 days), sale of unauthorized products, knowingly false books/underreporting, intellectual property misuse, misrepresentation in acquisition, failure to complete training, and failure to meet financial covenants. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, no Restricted Person or CRM may engage in Competitive Activities (owning, operating, lending to, advising, being employed by, or having financial interest in any restaurant deriving 20% or more of Gross Sales from fried chicken, or related businesses). After termination or expiration, for 2 years, no involvement in Competitive Activities within a 25-mile radius of the former franchised restaurant or any other existing/under-construction Dave's Hot Chicken Restaurant. This is subject to applicable state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an individual, direct supervision is required. If an entity, an approved Operating Principal with at least 10% equity must be designated, responsible for day-to-day operations and devoting 100% of their time and best efforts to the business. For multiple units, a Director of Operations is also required. Minimum manager staffing is six for the first restaurant (first 30 days), four for subsequent restaurants (first 30 days), then one per restaurant. Operating Principals and managers must complete franchisor training. Spouses of franchise owners must sign a Continuing Guaranty. |
| Required Suppliers | Franchisees must purchase or lease all products, services, supplies, fixtures, equipment, inventory, computer hardware and software, and real estate related to establishing and operating the Dave’s Hot Chicken Restaurant from franchisor designees, approved suppliers, or the franchisor/its affiliates. This includes proprietary food products and recipes, plates, cups, boxes, containers bearing trademarks, designated architects for preliminary floorplans and construction document review, approved construction managers, designated merchant services providers, and designated suppliers for computer system installation, support, hosting, and reporting. Franchisees must also purchase required insurance coverage from approved carriers. |
| Supply Restrictions | Franchisees must not deviate from franchisor's methods, standards, and specifications without prior written consent. The franchisor may restrict the sourcing of current and future items. Only expressly authorized non-proprietary products may be used or sold. Franchisees must maintain sufficient inventory, use designated menus and menu boards, and serve meals as designated. All plans and modifications to premises require franchisor review and acceptance before construction. Franchisees must use the franchisor's designated merchant services provider for debit and credit cards, and a designated supplier for computer system installation, support, hosting, and reporting. Required insurance coverage must be purchased. |
| Franchisor Revenue from Suppliers | Franchisor and its affiliates may receive rebates, credits, and marketing allowances from suppliers, which are generally passed through to franchisees pro rata based on purchases. Beverage suppliers pay up to $2 per gallon in marketing allowances, currently distributed proportionally to franchisees. Some suppliers may pay sponsorship fees for the annual conference. No direct revenue was derived from required purchases or leases from franchisees in the last fiscal year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing to you. We do not guarantee your note, lease or other obligation. |
Dave's Hot Chicken Franchise Earnings — Item 19
Dave's Hot Chicken does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Dave's Hot Chicken does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Dave's Hot Chicken Litigation & Risk Flags
Clean Litigation RecordDave's Hot Chicken has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Dave's Hot Chicken System Growth
Total Units
96
Franchised
78
Company-Owned
18
Dave's Hot Chicken currently operates 78 franchised locations and 18 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 5 | 0 | 7 |
| 2021 | 29 | 0 | 36 |
| 2022 | 60 | 0 | 96 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: DE, CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$10.5M
Net Income
$1.1M
Total Assets
$13.0M
Dave's Hot Chicken Franchise — FAQ
The total investment to open a Dave's Hot Chicken franchise ranges from $615,800 to $1,825,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Dave's Hot Chicken charges a royalty fee of 5% of Gross Sales of gross sales, plus a 2% of weekly Gross Sales (Creative Fund) + 1% of annual Gross Sales (Local Advertising) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Dave's Hot Chicken Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Dave's Hot Chicken to ensure you have the most up-to-date version.
Dave's Hot Chicken does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Dave's Hot Chicken has been franchising since 2019. The FDD shows an investment range of $615,800-$1,825,000, a 5% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $615,800 to $1,825,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Dave's Hot Chicken and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Dave's Hot Chicken or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com