Dave’s Hot Chicken Franchise FDD, Profits & Costs (2025)
Dave’s Hot Chicken, a fast-growing spicy quick-service brand, was founded in 2017 in Los Angeles by Arman Oganesyan, Tommy Rubenyan, and Gary Rubenyan. Known for its bold Nashville hot chicken, the brand quickly gained popularity.
Headquartered in Los Angeles, Dave’s Hot Chicken began franchising in 2018, allowing entrepreneurs to bring its signature flavors to local communities.
The brand is famous for its fiery chicken tenders and sliders, offered in spice levels from mild to super spicy, complemented by a variety of flavorful sides.
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Dave’s Hot Chicken Franchise Initial Investment
It costs on average between $620,000 – $1,963,000 to start a Dave’s Hot Chicken franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors. For example: the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount (Low – High) |
|---|---|
| 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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Dave’s Hot Chicken Franchise Disclosure Document
Frequently Asked Questions
How many Dave’s Hot Chicken locations are there?
As of the latest data, Dave’s Hot Chicken operates a total of 169 locations in the U.S., out of which 146 are franchise-owned and 23 are company-owned. The brand has focused on rapid expansion through franchising, which has been the primary driver of its growth since it began offering franchises in 2019.
The company continues to expand rapidly, adding new locations in the U.S., Canada, the Middle East, and more, including future international openings in the UK. The brand has also signed agreements for over 990 additional units, positioning it for significant future growth.
What is the total investment required to open a Dave’s Hot Chicken franchise?
The total investment required to open a Dave’s Hot Chicken franchise ranges from $620,000 – $1,963,000.
What are the ongoing fees for a Dave’s Hot Chicken franchise?
Dave’s Hot Chicken franchisees are required to pay a 6% royalty fee on gross sales. Additionally, there is a 5% marketing fee on gross sales, which covers national and local advertising efforts.
What are the financial requirements to become a Dave’s Hot Chicken franchisee?
To qualify as a Dave’s Hot Chicken franchisee, you need a minimum net worth of $5 million and at least $2.5 million in liquid assets. These financial requirements ensure that franchisees have the resources necessary to operate and expand their business successfully.
Who owns Dave’s Hot Chicken?
Dave’s Hot Chicken is primarily owned by its co-founders Arman Oganesyan, Dave Kopushyan, and brothers Tommy and Gary Rubenyan. In 2019, a significant ownership stake was acquired by an investment group led by Bill Phelps (co-founder of Wetzel’s Pretzels) and John Davis (a movie producer). Several celebrity investors, including Drake, Samuel L. Jackson, and Michael Strahan, hold minority stakes in the company.
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