FranDB
Dave's Hot Chicken

Dave's Hot Chicken

Dave’s Hot Chicken franchises fast-casual restaurants featuring Nashville-style hot chicken tenders and sliders with made-to-order spice levels, along with related food and drink items in a fun dining format. The business model primarily offers multi-unit area development franchises requiring a minimum of three restaurants in a designated area, with options for single-unit franchises in traditional, non-traditional, or food truck formats. It targets multi-unit operators and entrepreneurs in the quick-service restaurant industry seeking high-investment opportunities in spicy chicken concepts.

Since 2019Fast CasualPasadena, CAHollywood Parent LLCwww.daveshotchicken.com
No Item 19SBA Loan Data

Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.

Overview

Investment
$617,800 - $3,218,000
Franchise Fee
$40,000
Locations
221

Financial Requirements

Franchise Fee$40,000
Initial Investment Range$617,800 - $3,218,000
Royalty Rate6.00%
Brand Fund4.00%
Fixed Monthly Fees$1,293 - $2,723

6% royalty + 4% creative fund + $170-$500/week technology & operations fee + $556/mo (food safety assessment, mystery shopper, guest response)

Franchise Stats

Franchise Locations221
Corporate Locations23
States Operating38
Franchising Since2019
FDD Year2025

Financial Performance

Item 19 Financial Performance

This franchise did not provide Item 19 financial performance data.

Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.

Extracted Item 19 Section

How Dave's Hot Chicken Compares to Other Fast Casual Franchises

Key Insights

  • One of the lowest SBA loan default rates in Fast Casual
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
Dave's Hot Chicken
Current
$618K - $3.2M$40K6.0%221
Tropical Smoothie Cafe$300K - $721K$35K6.0%1,371
TROPICAL SMOOTHIE CAFÉ$300K - $721K$35K6.0%1,371
FIREHOUSE SUBS RESTAURANTS (UNIT)$379K - $1.4M$20K6.0%1,248
Zaxby's$1.4M - $3.8M$35K6.0%826
Qdoba$548K - $1.3M$40K5.0%652
Fast Casual Average
107 franchises
$532K - $1.2M$39K5.6%-

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 107 Fast Casual franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States by Outlet Count
1CA
47
2TX
28
3NY
15
4MA
11
5FL
9
6IL
8
7NJ
8
8MI
7
9WI
7
10OH
7
11CO
6
12OR
6
13IN
6
14AZ
6
15VA
5

+22 more states

SBA Loan History

Historical SBA 7(a) loan data for Dave's Hot Chicken franchisees (2023 - 2025)

Total Loans
5
Average Loan Amount
$1,019,600
Total Loan Volume
$5,098,000
Default Rate
0.0%

Loans by Year

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts

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Due Diligence

Litigation (Item 3)

Franchisee Litigation Cases0

No litigation involving franchisees reported in the FDD.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported in the FDD.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired by Franchisor
0
Ceased Operations (Other)
0
System Transfers
5
Sold to Franchisees
1
Projected New Franchises
148

Frequently Asked Questions

How much does it cost to open a Dave's Hot Chicken franchise?

The total initial investment to open a Dave's Hot Chicken franchise ranges from $617,800 to $3,218,000. This includes a franchise fee of $40,000. Ongoing royalty fees are 6.0% of gross sales.

How many Dave's Hot Chicken franchise locations are there?

As of the 2025 FDD, Dave's Hot Chicken has 221 franchise locations. The company has been franchising since 2019.

Can you get an SBA loan for a Dave's Hot Chicken franchise?

Yes, SBA loans are available for Dave's Hot Chicken franchises. Historical data shows 5 SBA 7(a) loans have been approved for Dave's Hot Chicken franchisees, with an average loan amount of $1,019,600. The historical default rate is 0.0%.

Is Dave's Hot Chicken a good franchise to buy?

Dave's Hot Chicken shows several positive indicators: established brand with 221+ locations, low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

Interested in Dave's Hot Chicken?

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