Dave's Hot Chicken Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$620,000 - $1,963,000
Royalty fee
6.00%

Dave's Hot Chicken: Revolutionizing Spicy Fast-Casual Dining

Dave's Hot Chicken has emerged as a dominant force in the spicy fast-casual dining sector, captivating food enthusiasts with its delectable offerings and swift growth. Launched in 2017 by Arman Oganesyan, Tommy Rubenyan, and Gary Rubenyan in Los Angeles, California, this franchise has quickly gained a reputation for its Nashville hot chicken's bold flavors.

Based in Los Angeles, Dave's Hot Chicken boasts a brief yet remarkable history, marked by a commitment to providing an extraordinary taste experience.

The franchise began its journey into franchising in 2018, allowing entrepreneurs and fans of spicy cuisine to bring the renowned Nashville hot chicken to their neighborhoods. Dave's Hot Chicken is renowned for its spicy chicken tenders and sliders, which range in heat levels from mild to extra hot, accompanied by a selection of tasty sides.

Dave's Hot Chicken distinguishes itself from its competitors through its dedication to hot chicken artistry, focusing on authenticity, quality, and robust flavor profiles. The franchise's unique secret spice blend, paired with its juicy and expertly cooked chicken, has earned it a loyal fanbase of spice aficionados and food lovers.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Low Amount High Amount
Initial Franchise Fee $40,000 $40,000
Architect / Engineer $14,000 $50,000
Business Licenses and Permits $1,000 $30,000
Construction, Remodeling and Leasehold Improvements $275,000 $875,000
Equipment $110,000 $315,000
Furniture, Fixtures and Decorations $11,500 $100,000
Smallwares $11,000 $18,000
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 $35,000
Computer Equipment and Information / POS Systems $13,500 $40,000
Office Supplies $1,000 $3,000
Uniforms $1,500 $5,000
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 $12,000 $23,000
New Restaurant Opening Fee $0 $15,000
Pre-Opening Labor Expense $15,000 $40,000
Pre-Opening/Grand Opening Advertising $10,000 $12,000
Miscellaneous Opening Costs $1,000 $20,000
Professional Fees $1,000 $15,000
Additional Funds – 3 Months $16,300 $48,000
TOTAL ESTIMATED INITIAL INVESTMENT $619,800 $1,963,000

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Number of units

2024
Franchised units

22

78

146

Company-owned units

14

18

23

Total units

36

96

169

Franchise Disclosure Document

Training 

Dave's Hot Chicken offers a comprehensive training program to ensure that franchisees and their teams are fully prepared to run their franchises smoothly. The training program includes:

Initial Training Program

  • Location: Conducted at Dave's Hot Chicken's training facilities in Pasadena, California, or another designated location.
  • Participants: Required for the franchisee (or Operating Principal if the franchisee is an entity) and up to three management personnel selected by the franchisee.
  • Content: Encompasses Dave's Hot Chicken's system and operational procedures, including food preparation, customer service, business management, and the use of proprietary technology.
  • Duration: Varies depending on the participants' prior experience and skill levels.

Extra Practice Week and Online Training

  • An additional week of hands-on training (Extra Practice Week) is necessary for the franchisee's Operating Principal and Director of Operations, ideally scheduled 60 days before the restaurant's opening.
  • Online training modules supplement the in-person sessions, offering flexibility and opportunities for continuous learning.

Ongoing and Remedial Training

  • Dave's Hot Chicken may require franchisees, their managers, and other employees to attend periodic refresher or additional training sessions.
  • Remedial training may be mandated if an inspection identifies non-compliance with franchise agreement standards, focusing on correcting operational deficiencies.

Territory Protection

Dave's Hot Chicken provides a territory protection option for its franchisees. The franchise agreement specifies whether a franchisee is granted "No Territorial Rights" or is assigned a defined area detailed in Attachment A as their "Territory."

  • No Territorial Rights: If this option is selected, the franchise rights are confined to the specific location at the given street address. The franchisee acknowledges that there is no territorial protection.
  • Defined Territory: If a Territory is outlined and described in Attachment A, Dave's Hot Chicken and its affiliates agree not to open or operate any restaurants, nor license others to do so, within that geographic area for the duration of the agreement.

In cases where the franchisee is also part of an Area Development Agreement, the designated Territory will be limited to the development area specified in that agreement. The franchise agreement may permit some territorial overlap, particularly when multiple franchises are located in close proximity.

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