About Dickey's Barbecue Pit Franchise
Dickey's Barbecue Pit is the largest barbecue franchise in the United States, serving slow smoked meats and classic Southern sides since 1941.
Backed by Dickey's Capital Group, Inc., the brand has been franchising since 1994 and has grown to hundreds of locations nationwide, bringing Texas style barbecue to communities across the country.
The franchise fee ranges from $15,000 to $20,000, making it one of the most affordable entry points in the barbecue restaurant franchise space.
Dickey's Barbecue Pit Franchise Cost & Fees
Minimum Investment
$82K
Average Investment
$274K
Maximum Investment
$465K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000 - $20,000 | One-time payment upon signing |
| Royalty Fee | 6% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Net Sales | National brand fund |
| Total Investment Range | $82,466 – $465,112 | Includes build-out, inventory, working capital |
The investment range of $82K–$465K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Net Sales) and marketing fee (3% of Net Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $15,000 | $20,000 |
| Architectural Plans | $1,000 | $20,000 |
| Permits | $500 | $15,000 |
| Leasehold Improvements | $0 | $295,000 |
| Furniture, Fixtures, and Equipment | $42,000 | $160,000 |
| Graphics | $0 | $6,000 |
| Digital Menu Boards | $0 | $4,700 |
| Signage | $0 | $14,000 |
| Point of Sale Computer and Technology in A Box | $5,000 | $7,000 |
| Tenant Improvements | $20,000 | $92,000 |
| Lease Deposits | $1,000 | $10,000 |
| Training | $1,750 | $2,900 |
| ServSafe Training | $0 | $185 |
| BU Enrollment Fee | $30 | $30 |
| Opening Inventory and Services | $4,000 | $7,000 |
| Insurance | $0 | $12,000 |
| Restaurant Opening Fee | $5,000 | $8,000 |
| Professional Fees | $1,500 | $3,000 |
| Closing and Finance Costs | $0 | $15,000 |
| Smokestack Sales Reporting System Software Fee | $200 | $200 |
| Spark Online Ordering Fee | $596 | $596 |
| Spark POS SaaS Fee | $572 | $572 |
| Technology Support Fee | $1,328 | $3,139 |
| Chowly Fees | $290 | $290 |
| Epson Printer | $500 | $500 |
| Cloud Computing | $0 | $690 |
| Additional Funds – 3 Months | $2,200 | $15,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $15,000 or Dickey's reasonable costs and expenses |
| Renewal Fee | $15,000 |
| Technology Fee | Currently, $149 per month (Spark POS SaaS Fee); Currently between $251 and $304 per month (Technology Support Fee); $58 per month for the first Restaurant plus $40 per month for each additional Restaurant and each manager with access to the system; $100 annual infrastructure support fee per Restaurant (Smokestack Sales Reporting System Software Fee); $157 per month (Spark Online Ordering Fee/Mobile Unit Software); $0.01 per online order (Spark Processing Fee); $2.08 monthly or $25 per year (Spark POS – Maintenance/license fee – Mobile Unit Franchise only) |
| Audit Fee | Cost of audit plus interest |
| Chowly Monthly Fee | $30 per month |
| Insurance Premiums | Vary depending on location |
| Payments to Landlord and Utility Providers | Vary depending on location |
| Unapproved Insurance Vendor Review Fees | $350 for costs of reviewing insurance coverages procured by proposed vendor; additional $150 for each subsequent review of insurance coverages due to insufficient coverage or changes |
| Training Instruction and Materials | $1,150 for each Owner/Operator and any other individual(s) you designate and Dickey's approves to attend our Training Program; $1,750 for online and onsite training for up to 3 managers, which includes manager certification. |
| BUO Training Program Enrollment | $10 per month |
| Site Evaluation Fee and Costs | All of Dickey's reasonable costs and expenses plus a site evaluation fee of $1,000 |
| Product and Service Purchases | Varies |
| Testing | The cost of inspection and testing |
| Inspection | The cost of inspection and correcting any deficiencies |
| Replacement or Update of the Manuals or other forms used in running your Restaurant | Actual cost of replacement or update and delivery of Manuals or other forms necessary for running your Restaurant |
| Securities Offering Review | $1,000 or Dickey's costs incurred for review of offering materials, whichever is greater |
| Management Fee | 5% of Net Sales, plus pass through costs and expenses |
| Indemnification | Actual legal fees, costs and expenses |
| Interest | 15% or maximum rate allowed by law, whichever is less |
| Late Fee | Actual legal fees, costs and expenses |
| Insufficient Funds Processing Fee | $40 |
| Legal | Actual legal fees and expenses |
| Termination Liquidated Damages | equal to the present value of your Royalty Fee for the number of months remaining in the term of the Franchise Agreement, not to exceed 60 months |
| Non-Compliance Fee | $500 to $2,000 for deviations from operational requirements/standards and specifications. |
| Customer Complaint Reimbursement | Out-of-pocket cost reimbursement |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | up to four weeks |
| Classroom Training | 36 to 50 |
| On-the-Job Training | 61 to 90 |
| Training Location | Dickey's corporate training center and/or at a company-operated Restaurant or another location designated by Dickey's. Currently, all such locations are in the North Texas area. |
| Additional Training | All certified managers required to complete 12 credit hours of continuing education courses per year (1 credit hour/month). Hourly employees required to be certified with Dickey's online training within 15 days of starting work. Additional or remedial training programs and seminars may be offered and can be mandatory. Franchisees are responsible for associated expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | one (1)-mile radius |
| Description | Initially, the Assigned Area is the city/township/borough/incorporated town. Upon Dickey's acceptance of a specific street address for the Restaurant, the Assigned Area is reduced to a 'Primary Area' of a one-mile radius around that Accepted Location. Within this Primary Area, Dickey's will not establish or authorize another Dickey's Barbecue Restaurant. However, Dickey's and its affiliates retain extensive rights to operate or franchise other concepts (e.g., Big Deal Burger, Wing Boss, Trailer Birds), sell similar products through alternative channels (internet, grocery stores), advertise, fulfill catering/delivery orders, and operate non-traditional venues (stadiums, airports, food trucks) within the Assigned or Primary Area. Franchisees may compete with other Dickey's units for off-premises catering and delivery orders. Development Agreements grant a larger 'Territory' which is divided into 'Markets', with exclusivity terminating for a Market once the required Franchise Agreements are executed, reverting to Primary Area protection. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years for Traditional Restaurants or 10 years for Non-Traditional Restaurants, Mobile Unit Franchises, Delivery-Carryout Restaurants and Ghost Kitchens |
| Renewal Term | 10 additional years |
| Renewal Fee | $15,000 |
| Renewal Conditions | Franchisee must give 6-12 months' written notice, repair/replace/modernize equipment and premises (up to $100,000 cost), not be in default, satisfy all monetary obligations, provide evidence of right to possession for renewal term, execute Dickey's then-current Franchise Agreement (which may have materially different terms, including higher Royalty/advertising fees but no new franchise/renewal fees), execute a general release (if permitted by law), comply with then-current qualifications and training, and the franchise must be above the 50th percentile of the Net Sales/customer complaint ratio chain-wide for the preceding 12 months. |
| Transfer Fee | Greater of $15,000 or Dickey's reasonable costs and expenses |
| Transfer Conditions | Requires Dickey's prior written consent (not unreasonably withheld, except for small interests in publicly-held corporations). Conditions include: all monetary obligations satisfied, no defaults, execution of a general release (if permitted by law), transferee assumes all obligations, transferee meets Dickey's criteria (educational, managerial, business, moral character, reputation, credit, aptitude, financial resources), transferee executes a new franchise agreement (may have different terms, higher fees, but no initial franchise fee), transferee renovates/upgrades Restaurant to current standards, transferor remains liable for pre-transfer obligations, transferee's Owner/Operator/managers complete training, and payment of transfer fee. |
| Termination for Cause | Dickey's can terminate for various defaults, some curable, some non-curable. Non-curable defaults include bankruptcy/insolvency, unapproved transfers, failure to locate/acquire site, failure to open within 12 months, default under lease/financing, cessation of operations, health/safety threats, breach of confidentiality/non-compete, repeated defaults (even if cured), or default under other agreements with affiliates. Curable defaults (7 or 30 days to cure) include non-payment of fees, operational violations, misuse of marks, failure to submit insurance proof, breach of covenants, dishonest/unethical conduct, illicit statements, purchasing from unapproved vendors, or material misrepresentations. Repeated curable defaults (more than twice in 12 months) become non-curable. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, franchisee will not divert business to a competitor or be involved in a competing restaurant. After termination or expiration, no competing business for 2 years within 30 miles of the former Restaurant or within 5 miles of another Restaurant (including after assignment). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Owner/Operator must directly or indirectly hold at least a 20% ownership interest in the entity, work full-time (at least 40 hours per week) in the Restaurant, and be fully authorized to manage day-to-day business affairs. Only one Owner/Operator is permitted per Franchise Agreement. Additionally, at least two certified managers per Restaurant are required to devote full-time efforts to daily management. Multi-unit operators (more than 2 Restaurants) may appoint a Director of Operations (5% or more equity, full-time) instead of an Owner/Operator, and may also be required to hire District Managers. All equity interest owners, including the Owner/Operator, must jointly and severally guarantee obligations. |
| Required Suppliers | Approved suppliers for barbecue sauce (batch and prepackaged), barbecue seasonings, salad dressings, condiments, pre-made salads, side dishes, bread, produce, proteins, spices, packaging and other ingredients for proprietary recipes. Designated supplier for menu boards (unless Ghost Kitchen). Approved suppliers for food products, paper stocks, chemicals, uniforms, collateral marketing materials, and other supplies. Approved point of sale system and related hardware/software (currently Spark Point-of-Sale system with Smokestack information management system). Approved supplier for credit card and gift card processing. Approved supplier for cloud computing and data storage services (VikingCloud for Mobile Units). Approved architect for planning and design. Approved general contractor for construction. Approved accounting firm for comprehensive accounting services. Approved third-party online ordering or delivery services (including Chowly, Inc.'s aggregation software). Spark for online orders through Dickey's website. Epson printer from Dickey's or Spark. |
| Supply Restrictions | Franchisees must purchase proprietary recipe ingredients from approved suppliers only, with no alternative suppliers permitted. Other food products, paper stocks, chemicals, uniforms, and marketing materials must come from approved suppliers. Specific computer hardware and software (POS, TIBS, Smokestack, Spark Online Ordering) must be purchased from designated suppliers (currently Spark or its approved vendor). Credit card and gift card processing must use an approved supplier. Mobile Units must use VikingCloud for cloud computing. Architects and general contractors must be approved by Dickey's. Accounting firms must be approved. Third-party online ordering/delivery services must be approved. No unapproved third-party online, delivery, or voucher companies. Dickey's may direct approved suppliers to deliver required menu items at franchisee's expense if not available for sale. |
| Franchisor Revenue from Suppliers | During the 2022 fiscal year, Dickey's received no revenue or other material consideration from required purchases or leases by Dickey’s franchisees. Our affiliate, Wycliff, received $19,109,287 from indirect purchases of certain paper and food products. Our affiliate, Spark, received $3,206,443 from subscription fees for Smokestack, POS, and online ordering services. Our affiliate, Stanford Sonoma, received $1,534,209 from purchases of Hickory wood pellets, fixtures, furnishings, and interior design finishings. Dickey's and its affiliates received a total of $5,581,768 in credits and payments from vendors based on franchisee purchases (e.g., sales incentives/rebates on food/beverage, paper goods, cleaning products, credit card processing, firewood/pellets, equipment, insurance). Dickey's anticipates one approved food supplier will pay an administrative fee based on product cases delivered for assistance provided by Dickey's or its affiliates. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Dickey's does not offer direct or indirect financing. It may refer franchisees to independent lenders but does not guarantee financing or any obligations. |
Dickey's Barbecue Pit Franchise Earnings — Item 19
Dickey's Barbecue Pit 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.
Dickey's Barbecue Pit 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.
Dickey's Barbecue Pit Litigation & Risk Flags
3 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Dickey's Barbecue Pit System Growth
Total Units
485
Franchised
475
Company-Owned
10
Dickey's Barbecue Pit currently operates 475 franchised locations and 10 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 39 | 73 | 473 |
| 2021 | 41 | 29 | 485 |
| 2022 | 21 | 22 | 485 |
Transfers: 71 | Closures: 22
Dickey's Barbecue Pit Franchise — FAQ
The total investment to open a Dickey's Barbecue Pit franchise ranges from $82,466 to $465,112, per their Franchise Disclosure Document. This includes the initial franchise fee of $15,000 - $20,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Dickey's Barbecue Pit charges a royalty fee of 6% of Net Sales of gross sales, plus a 3% of Net Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Dickey's Barbecue Pit 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 Dickey's Barbecue Pit to ensure you have the most up-to-date version.
Dickey's Barbecue Pit 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.
Dickey's Barbecue Pit has been franchising since 1994. The FDD shows an investment range of $82,466-$465,112, a 6% of Net Sales royalty, and includes an Item 19 earnings disclosure. There are 3 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $15,000 - $20,000 and the total investment ranges from $82,466 to $465,112 depending on location size and market. A minimum of $2,200 in liquid capital is required. 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 Dickey's Barbecue Pit and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Dickey's Barbecue Pit or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com