FranchiseLens › Chicken & Wings
Daves Hot Chicken logo

Daves Hot Chicken

Chicken & Wings · 2024 FDD

Dave's Hot Chicken offers Nashville-style hot chicken tenders and sliders in fast-casual restaurants, known for their spicy flavor and fun atmosphere, operating in the quick-service restaurant sector.

$1,853,400 – $9,654,000
Total investment
$40,000
Franchise fee
1,432
Systemwide units
6%
Royalty

About Daves Hot Chicken

Founded2017
HeadquartersPasadena
Industryfast food

Dave's Hot Chicken is an American fast casual restaurant chain headquartered in Pasadena, California, specializing in Nashville-style hot chicken. Founded in 2017, the company operates over 390 locations across United States, Canada, United Kingdom, and Middle East as of 2026.

Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)

Compare Daves Hot Chicken Ask about Daves Hot Chicken

Daves Hot Chicken franchise FAQ

How much does it cost to open one — the total initial investment?

The total initial investment necessary to begin operation of an Area Development Franchise under a development agreement is between $1,853,400 and $9,654,000, which assumes the development of at least three Dave's Hot Chicken Restaurants at traditional venues. [p.1]

What is the initial franchise fee?

The Initial Franchise Fee for a Dave's Hot Chicken Restaurant is $40,000 for a Traditional Restaurant or Non-Traditional Restaurant, and $20,000 for a DHC Food Truck [p.24]. This fee covers pre-opening assistance provided by the company to allow you to open your restaurant [p.24].

What are the ongoing royalty and advertising fees?

The ongoing royalty is 6% of the franchisee's Gross Sales each week, as stated in [p.128]. Additionally, franchisees must contribute to an advertising fund based on a percentage of their net sales, though specific percentages for this fee are not provided in these excerpts; however, it can be inferred that it is at least 5% since the continuing royalty alone is 6%.

How long is the initial franchise agreement, and can I renew it?

The term of the initial franchise agreement is not specified in the excerpts. However, if applicable law requires Franchisor to give notice prior to the expiration of the term, this Agreement shall remain in effect on a week-to-week basis until such notice is given [p.128]. Additionally, under certain conditions, Franchisor may offer to renew the agreement upon the same terms set forth herein for a Successor Term determined in accordance with Section 3.1 of the Agreement [p.128].

Can I sell or transfer my franchise, and what does that require?

The franchisor can refuse to permit a transfer of ownership of the franchise except for good cause [p.6]. Good cause includes but is not limited to unspecified reasons, and this does not prevent the franchisor from exercising a right of first refusal to purchase the franchise [p.6].

On what grounds can the franchisor terminate the agreement?

The franchisor can terminate the agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so. [p.6]

What financial requirements — net worth and liquid capital — do I need to qualify?

This isn't specified in the excerpts.

Do I get an exclusive or protected territory?

No, you do not receive an exclusive or protected territory. You may face competition from other Dave's Hot Chicken restaurants and food trucks operated by the company, franchisees, or third parties within your designated area [p.64, p.66]. Additionally, you are restricted to operating the food truck only in pre-approved locations within the development area and cannot operate it in another Dave's Hot Chicken protected territory [p.305].

What training and ongoing support does the franchisor provide?

The franchisor provides an initial training program that includes instruction based on the Operations Manual. This training is conducted by members of the headquarters and operations team, supervised by Jim Bitticks and Juan Lopez. For new franchisees, initial training classes are held as needed. Ongoing support isn't specified in detail beyond this initial training; however, key employees may receive limited training on the Dave's Hot Chicken System and brand standards [p.52].

How many franchised outlets are there, and how many have closed or been terminated?

This isn't specified in the excerpts.

Does the franchisor share any financial performance or earnings information?

The franchisor does not make any financial performance representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. However, if you are purchasing an existing outlet, they may provide actual records of that specific outlet [p.80]. Additionally, if you receive other financial performance information or projections of your future income, you should report it to the franchisor's management and relevant regulatory agencies [p.80].

What am I restricted to selling, and where must I buy supplies?

You are required to sell only those products and services authorized by the franchisor, which may vary based on operating season and geographic location [p.72]. For supplies, you may have to purchase or lease items from the franchisor or a limited group of suppliers designated by them, though in some cases, you can choose any vendor as long as your purchases conform to their System and specifications [p.44].