Dave’s Hot Chicken Franchise FDD, Profits & Costs
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.
Dave’s Hot Chicken Franchise Initial Investment
It costs on average between $263,000 - $4,122,000 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.
Dave’s Hot Chicken offers 3 investment options:
| Type of Franchise | Initial Investment |
|---|---|
| Freestanding Location – Traditional Restaurant | $823,800 to $4,121,900 |
| In-Line and Endcap – Traditional and Non-Traditional Restaurant | $616,800 to $2,632,500 |
| DHC Food Truck | $263,150 to $688,500 |
The following breakdown summarizes the estimated startup costs for a Freestanding Dave’s Hot Chicken Traditional Restaurant.
We are summarizing below the main costs associated with opening a Freestanding Dave’s Hot Chicken Traditional Restaurant franchise.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $40,000 |
| Architect / Engineer | $15,000 to $160,000 |
| Business Licenses and Permits | $1,000 to $217,000 |
| Construction, Remodeling and Leasehold Improvements | $475,000 to $2,315,900 |
| Equipment | $95,000 to $440,000 |
| Furniture, Fixtures and Decorations | $11,500 to $135,000 |
| Smallwares | $11,000 to $41,000 |
| Signage | $23,000 to $123,000 |
| Graffiti and Artwork | $30,000 to $125,000 |
| Grand Opening Kit, Menu Boards | $12,500 to $36,000 |
| Drive-Thru, Loop Timers and Signage | $0 to $35,000 |
| Computer Equipment and Information / POS Systems | $13,500 to $66,000 |
| Office Supplies | $1,000 to $3,000 |
| Uniforms | $1,500 to $13,000 |
| Initial Inventory and Supplies | $20,000 to $75,000 |
| Insurance Deposits | $1,500 to $12,000 |
| Liquor Licensing | $0 to $3,000 |
| Pre-Opening Rent | $5,000 to $35,000 |
| Initial Training Expenses | $2,000 to $30,000 |
| New Restaurant Opening Fee | $0 to $15,000 |
| Pre-Opening Labor Expense | $15,000 to $75,000 |
| Grand Opening Advertising | $10,000 to $12,000 |
| NRO Media Fee | $22,000 |
| Miscellaneous Opening Costs | $1,000 to $30,000 |
| Professional Fees | $1,000 to $15,000 |
| Additional Funds – 3 Months | $16,300 to $48,000 |
| Total Estimated Initial Investment | $823,800 to $4,121,900 |
Dave's Hot Chicken Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Dave’s Hot Chicken franchise?
Most franchise buyers in Dave’s Hot Chicken’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Dave’s Hot Chicken franchise investment?
Payback periods for franchises in Dave’s Hot Chicken’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
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.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
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