Quick Verdict · who it fits
Dave's Hot Chicken fits first-time franchise buyers looking for a mid-scale food & beverage concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$617K - $4.1M
Franchise fee (Item 5)
$40K
Royalty (Item 6)
6% + 4% ad
System size (Item 20)
348 +117
Years in business
20+ yrs
Company-owned units
10
Item 3 litigation
4 suits
Model Dave's Hot Chicken's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
•No exclusive territory•Owner-operator required✓No bankruptcy disclosed•4 Item 3 cases
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 6% + ad fund 4% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (6%)
—
Ad fund (4%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
358
Total units open
348 franchised + 10 company-owned as of December 31, 2025
117 franchised units
Units opened last year
2025
2
Units closed last year
1 ceased operations + 1 reacquired by franchisor
115 units
Net unit growth
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
3
Questions to ask
How Dave's Hot Chicken ranks against 811 Food & Beverage peers we've analyzed.
Initial investment
76th pct · of 811 peers
Franchise fee
57th pct · of 811 peers
System size
89th pct · of 811 peers
Food & Beverage industry averages
Avg investment
$528K - $1.3M
Avg franchise fee
$38K
Avg system size
235
Franchises analyzed
811
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Dave's Hot Chicken | None | $40K | $617K - $4.1M | 6% | 348 |
| Hoa Franchising, Llc (hooters)Similar price | Disclosed | $75K | $1.3M - $4.1M | — | 101 |
| Doctor's AssociatesBiggest system | None | $15K | $227K - $630K | 8% | 18,773 |
| Vintage Hospitality GroupTop-rated in category | Disclosed | $50K | $3.5M - $6.4M | 5.5% | 33 |
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Free explainers to go deeper before you sign.
Brand Analysis
The 2026 Dave's Hot Chicken Franchise Co. SPV LLC disclosure prices a freestanding restaurant at $823,800 to $4,121,900, charges a $40,000 fee, a 6% royalty and a 4% Creative Fund, requires a three-restaurant minimum, and publishes no earnings figures at all.
Brand Analysis
The 2026 Cinnabon Franchisor SPV LLC disclosure puts a Full Bakery at $196,250 to $715,100 with a $35,500 fee, and reports a $600,536 median across 189 enclosed mall bakeries.
Brand Analysis
Chipotle reported 4,186 company-operated restaurants and 15 international licensed restaurants as of June 30, 2026. None are franchised, there is no FDD, and there is nothing to apply for. Qdoba is the franchised version of the same order line, and its 12/25 FDD puts a traditional restaurant at $548,100 to $1,294,000.
Dave's Hot Chicken requires a $40,000 initial franchise fee and a total initial investment range of $616,800–$4,121,900, per the most recent FDD on file.
Dave's Hot Chicken franchises are sold by Dave's Hot Chicken Franchise Co. SPV LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.
No. Dave's Hot Chicken does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.
Franchisees pay a royalty of 6% and an advertising fund contribution of 4% on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Dave's Hot Chicken has 348 total locations, with 117 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
No. Dave's Hot Chicken does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt