From the filings

+49.356% franchised outlets YoYMandated tech stackHQ-led decisions

Dave's Hot Chicken

Quick service restaurant

Dave's Hot Chicken franchises 348 restaurants nationwide, with franchised outlets up 49.4% year over year. Item 11 of the FDD requires every restaurant to run a franchisor-designated computer and point-of-sale system, installed and supported through designated suppliers. For a vendor, that combination of scale, growth and a centralized tech mandate is the pitch.

For software vendors selling into US franchise brands.

Live signals

Total units
358
348 franchised
Franchised outlet growth
+49.356%
Item 20, last two year-ends
AUV
—
Item 19
Royalty
6% component; full terms unconfirmed
percentage component
Ad fund
4%
percentage component
Initial fee
$40K
per unit
Investment range
$824K–$4.12M
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
No claims
from the filing

Ordinary royalty terms

6% component; full terms unconfirmed

Complete royalty terms are not confirmed for the selected filing.

Recorded percentage components

These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.

1recorded components (FY2026)

Recorded percentage components (FY2026)Ad fund 4%. Components use their own filing bases and conditions. Drawn against a 15% reference scale.

15% reference

Ad fund 4%

Franchisor behaviours

What the franchisor requires

29 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 2 questions the text does not settle, which is not a no.

Accounting

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

We (or our designee) have the right to independently access the electronic information and data relating to your DHC Food Truck and to collect and use your electronic information and data in any manner, including to promote the System and the sale of Franchises.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

Within ninety (90) days following the end of each calendar year, Franchisee shall submit to Franchisor an unaudited financial statement prepared in accordance with generally accepted accounting principles, and in such form and manner prescribed by Franchisor, which shall be certified by Franchisee to be accurate and…

How the franchisor buys

Is there a franchisee advisory council, association or committee?

Yes

Item 11

We have an advisory council (“Council”) to advise us on advertising policies.

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Item 11

We reserve the right to upgrade, modify and add new systems and software, which may result in additional initial and ongoing expenses that you will be responsible for.

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Item 8

We and our affiliates may receive payments, rebates, allowances, credits or other material consideration from approved or designated suppliers based on purchases made by franchisees, and may retain or use any amounts received without restriction, in our sole discretion, and for any purpose we and/or our affiliates…

Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?

85

Item 8

We estimate that approximately 85% of purchases required to open your Dave’s Hot Chicken Restaurant and 85% of purchases required to operate your Dave’s Hot Chicken Restaurant will be from us or from other approved suppliers and under our specifications.

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Item 8

We may charge a fee to evaluate the proposed product, service, or supplier (estimated to be approximately $100 to $500).

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 8

We will use commercially reasonable efforts to notify you within 30 days after receiving all requested information and materials whether you are authorized to purchase or lease the product or service from that supplier or provider.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

Franchisee acknowledges that all telephone numbers, facsimile numbers, social media websites, Internet addresses and email addresses (collectively “Identifiers”) used in the operation of the Franchised Restaurant constitute Franchisor’s assets, and upon termination or expiration of this Agreement, Franchisee will…

Data and IT

Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?

Yes

Franchise agreement

Franchisee shall adhere to all PCI (Payment Card Industry), CISP (Cardholder Information Security Program) and SDP (Site Data Protection) compliance specifications, as amended.

Franchise management

Must the franchisee participate in a customer-satisfaction or net-promoter survey program?

Yes

Franchise agreement

Franchisee agrees to pay Franchisor its then-current fee (currently two hundred dollars ($200) per month) for Franchisor, its affiliate or designee to manage customer satisfaction surveys and responses to guest complaints, reviews and comments at the Franchised Restaurant (“Guest Response and Recovery Management Fee”).

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Franchise agreement

Franchisor’s authorized representatives shall have the right, from time to time, to enter upon the entire premises of the Franchised Restaurant during business hours, to examine same, conferring with Franchisee’s employees, inspecting and checking operations, food, beverages, furnishings, interior and exterior decor…

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Franchise agreement

Franchisor shall have the right to modify the Dave’s Hot Chicken Operations Manual at any time and from time to time;

Must the franchisor approve the franchisee's site or location before opening?

Yes

Item 12

You may operate the Dave’s Hot Chicken Restaurant only at the specific location we accept.

Marketing

Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?

Yes

Franchise agreement

Franchisee may not independently market its Franchised Restaurant or discuss the Franchised Restaurant, Franchisor, or Franchisor’s Affiliates through the Internet, social media, blogs or crowdfunding campaigns, or use any domain name, address, locator, link, metatag, or search technique with words or symbols similar…

Is a minimum grand opening advertising spend required?

Yes

Item 11

You will pay us between $10,000 and $12,000 for this advertising.

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Franchise agreement

In addition to the Creative Fund Contributions, Franchisee must spend one percent (1%) of annual Gross Sales on local advertising each year (“Local Advertising Requirement”).

Must the franchisee participate in a regional advertising cooperative when one exists?

Yes

Item 11

If we elect to form such cooperatives, or if such cooperatives already exist near your territory, you will be required to participate in compliance with the provisions of the Operations Manual, which we may periodically modify in our discretion.

Operations

Must the franchisee buy products from a designated distributor?

Yes

Franchise agreement

Franchisee shall purchase Authorized Products solely and exclusively from Franchisor or its designees.

Must equipment be purchased from designated or approved suppliers?

Yes

Item 8

You must use our designated suppliers for marketing and promotional materials, as well as connected TV media and social media.

Payments

Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?

Yes

Item 8

You must use our designated merchant services provider for debit and credit cards.

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Item 6

Payments are made via an electronic funds transfer (“EFT”).

Must the franchisee participate in a gift card program?

Yes

Item 11

In addition to offering and accepting Dave’s Hot Chicken gift cards and loyalty cards, you must use any payment vendors and accept all payment methods that we determine.

People

Does the franchisor require minimum staffing levels or specific roles?

Yes

Item 15

You must have at least six managers at your first Dave’s Hot Chicken Restaurant in a new Development Area for at least the first 30 days of operation, and you must have a minimum of four managers for subsequent Dave’s Hot Chicken Restaurants in the same Development Area for at least the first 30 days of operation.

Must employees wear uniforms specified by the franchisor?

Yes

Franchise agreement

Franchisee shall cause all employees, while working in the Franchised Restaurant, to: (a) wear uniforms of such color, design, and other specifications as Franchisor may designate from time to time

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 8

You must use the computer hardware and software, including the point-of-sale system that we periodically designate to operate your Dave’s Hot Chicken Restaurant.

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

We (or our designee) have the right to independently access the electronic information and data generated from the Computer System.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Item 11

From time to time, we may require that you, your managers and other employees attend system- wide refresher or additional training courses.

Is attendance at an annual convention or conference mandatory for the franchisee?

Yes

Franchise agreement

Franchisee, or if Franchisee is an Entity, its Operating Principal or a major Owner acceptable to Franchisor together with each NRO Leader, CRM and CT must attend Franchisor’s annual conference, for which Franchisee must pay a registration fee, regardless of attendance.

The filing answers no to 3 questions
  • Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Franchise agreement
  • Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
  • Must the franchisee participate in a customer loyalty or rewards program?Item 11

The vendor opportunity at Dave's Hot Chicken

Dave's Hot Chicken franchises 348 restaurants, plus 10 company-owned locations, with 65 franchised restaurants in California, 21 in Florida and 11 in Colorado. Franchised outlets grew 49.4% year over year. The FDD makes no financial performance representation. Operators here run larger footprints too: of 88 mapped operators, 69 run multiple units, with several holding 10 to 24 locations.

Who controls software purchasing

Dave's Hot Chicken operates under parent DHC STE Holdco. Executive Chairman William L. Phelps, CEO Jim Bitticks, Chief Restaurant Officer Juan Lopez, Chief Development Officer Carolyne Canady and SVP of Real Estate Dannon Shiff run the corporate side. Because Item 11 requires every restaurant to run the same franchisor-designated computer and POS system, corporate — not the individual operator — is where a vendor's pitch has to start, even for the system's larger multi-unit owners.

Tech named in the FDD, and what is actually required

The FDD requires every restaurant to install a Computer System that reports gross sales and runs programs the franchisor designates to extract sales and product-mix data, plus a business-class internet connection and two iPads to run the PlayerLync program for employee training. Franchisees must use the computer hardware and software, including the point-of-sale system, that Dave's Hot Chicken periodically designates, and must use its designated supplier for installation, support and hosting of that system, as well as a designated payment vendor accepting all methods the franchisor determines. Franchisees must also buy maintenance contracts, including help desk support and hardware maintenance, from approved suppliers. Non-Traditional Restaurants and DHC Food Trucks are the one carve-out where franchisees are not required to buy these systems from the designated supplier.

Procurement, renewals, and timing

Item 8 requires franchisees to buy Proprietary Products only from Dave's Hot Chicken or a licensed third party; for items without a designated source or approved supplier, a franchisee may buy from any vendor meeting the franchisor's specifications, or propose an alternative supplier for approval.

How to read the Dave's Hot Chicken FDD

The embedded PDF viewer below carries Dave's Hot Chicken's 2026 Franchise Disclosure Document in full. Talk to FranCloud for a ranked list of franchise systems like this one worth prioritizing for your next pitch.

Ordinary royalty terms

Complete royalty terms are not confirmed.

Questions vendors ask

Dave's Hot Chicken, answered from the filing

Dave's Hot Chicken's technology mandate is set corporately — Chief Restaurant Officer Juan Lopez and CEO Jim Bitticks run operations under Executive Chairman William L. Phelps — since every restaurant must use the same franchisor-designated computer and POS system rather than choosing its own.
Dave's Hot Chicken mandates franchisor-designated computer hardware, software and a point-of-sale system, installed, supported and hosted through its designated suppliers, plus a designated payment vendor and merchant services provider and two iPads running the PlayerLync training program — Item 11 of the FDD sets the full technology requirements.
Dave's Hot Chicken runs 348 franchised restaurants, with franchised outlets up 49.4% year over year, including 65 franchised restaurants in California and 21 in Florida.
Franchisees must buy Proprietary Products only from Dave's Hot Chicken or a licensed third party; for other items without a designated source, franchisees may buy from any vendor that meets specifications, with a process to propose an alternative supplier for approval.
Dave's Hot Chicken's initial term runs 10 years, with two consecutive 10-year successor terms available to restaurants in good standing — but with franchised outlets up 49.4% year over year, new-restaurant openings are the far more frequent trigger for a technology sale.
The embedded PDF viewer below holds Dave's Hot Chicken's 2026 Franchise Disclosure Document — read it directly for the full technology, supplier and renewal terms.
Source

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Dave's Hot Chicken2026 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

87 operators run 401 mapped locations. 69 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

2–9 units60
Single-unit18
10–24 units9

Top states by locations

CA77
FL30
TX28
NY17
MA16

Ownership

The portfolio behind Dave's Hot Chicken

Parent company: DHC STE Holdco LLC.

Related Quick service restaurant brands

Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.