Dave’s Hot Chicken Franchise: 1 to 500+

January 17, 2023 by No Comments



Dave’s Hot Chicken is a chicken-themed restaurant with various unique recipes. The menu revolves around Nashville-themed hot chicken in a fast-casual environment. The brand first started as a stand-in a West Hollywood parking lot. This is where four best friends Dave Kopushyan, Arman Oganesyan, Tommy, and Gary Rubenyan began their chicken dream. Dave was a trained chef in French Cuisine and was committed to making their chicken dream a reality.

This video was based on an exclusive Vetted Biz analysis, click here for the full report:

Dave’s Hot Chicken Franchise Plans to Open 500+ Locations

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00:00 Introduction
00:16 About Dave’s Hot Chicken
00:51 Dave’s Hot Chicken Locations
01:26 Dave’s Hot Chicken Competition
01:36 Franchise Investment Cost
01:54 Franchise Fee & Net Worth Requirement
02:24 Dave’s Hot Chicken Liquid Cash
03:08 Dave’s Hot Chicken Estimated Revenue & Profit
03:20 Time to Recoup the Investment
04:00 Conclusion

#DavesHotChickenFranchise #VettedBiz

William Phelps has served as the Chief Executive Officer since the company’s inception. Phelps previously served as the director of Blaze Pizza LLC and has years of experience in the Food and Beverage industry. Dave’s Chicken currently has 61 locations and has 3 more opening by the end of May 2022. Dave’s Hot Chicken has also sold over 500 franchise agreements and expects to open an additional 75 locations this year! Kris Humphries, a former NBA star, has committed to opening 10 franchise locations himself.

The Food and Beverage Industry makes up 36% of all franchises. This makes it the largest industry in the franchise sector. It accounts for roughly 5% of the U.S. gross domestic product. Furthermore, it has annual sales of $1.4 Trillion. The industry standard for royalty fees is 5.3% and 2.3% marketing fees. Despite the significant number of food and beverage franchises, there is a 19.17% failure rate.

Dave’s Hot Chicken royalty fee is on par with the industry norm of 5%. The marketing fee is currently 2%, but it is subject to be increased to 3%. Key competitor, Kentucky Fried Chicken has a royalty fee of between 4-5% and a marketing fee of 4.5%. To open a KFC you can expect to pay $1.01 – $2.77 million. In addition, Chick-Fil-A has the highest royalty fee in the industry at 15%. This indicates that Dave’s Hot Chicken is well-positioned against key competitors.

The investment cost to open a Dave’s Hot Chicken ranges from $585,800 – $996,500. Although a non-traditional Dave’s Hot Chicken with both sitdown and drive-through typically ranges between $2,543,215, and $11,267,015. When compared to KFC and other key competitors Dave’s Hot Chicken comes in at the moderate side of an initial investment. This means that it is well-positioned within the industry when opening a location.

There is a $30,000 initial franchise fee and $280,000 if an investor decides to open 26 locations. Additionally, there is a minimum net worth requirement of $250,000 – $500,000 to open a Dave’s Hot Chicken franchise. A higher net worth and hoping to open more than one location is also a great strength when hoping to open a Dave’s Hot Chicken franchise.

Additionally, Dave’s Hot Chicken expects liquid cash to be at least $100,000.

FINALLY, DAVE’S HOT CHICKEN ALSO DESIRES EXPERIENCE IN RESTAURANT OPERATIONS OR MANAGEMENT PRIOR TO OPENING A LOCATION.

Franchisees are expected to be directly involved in their locations.

Royalty Fee: 5%
Marketing Fee: 2-3%
Insurance Costs
Certification Training: $2,500 per manager
Technology Fee:
$1,200 initially
$750 per month thereafter
Mystery Shopper Fee: $125 per month
Location Lease: Varies

Although Dave’s Hot Chicken does not provide unit level profit, we estimate the following:

Expected Revenue: $1,490,000

Expected Profit Margin: 15%

Annual Profit: $223,000

7 Years to recoup for high investment

4.25 Years to recoup low investment

As seen above it can take between 4.25 – 7 years to recoup your investment. It all depends on where your franchise is in relation to cost to open and annual revenue/

Item 19/online information does not include expected revenue

This video was based on an exclusive Vetted Biz analysis, click here for the full report:

Dave’s Hot Chicken Franchise Plans to Open 500+ Locations

Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information:

How We Help Franchise Buyers Find The Right Franchise



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