Dave's Hot Chicken Franchise

Financing Details

Dave's Hot Chicken does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations for its franchisees.

Litigation Summary

Dave's Hot Chicken has no litigation cases that are required to be disclosed in this FDD. Dave's Hot Chicken maintains a clean legal record with no lawsuits or legal disputes to report.

Renewal Conditions

To renew their franchise agreement, Dave's Hot Chicken franchisees must have complied with all their obligations under the current franchise agreement, undertake remodeling to meet the franchisor's then-current standards, and not have had three or more material defaults within any 36-month period. Additionally, franchisees must comply with current training requirements and pay a renewal fee equal to 50% of the then-current initial franchise fee.

Staffing Notes

Dave's Hot Chicken Restaurants require specific staffing and management structures to ensure operational consistency and brand standards. Each franchisee must designate an Operating Principal, who serves as the primary point of contact with the franchisor and is responsible for the day-to-day operations of the restaurant. If the franchisee is an entity, this Operating Principal must hold at least a 10% equity stake in the franchise and, unless otherwise agreed, commit 100% of their time and effort to operating all Dave's Hot Chicken Restaurants owned by the franchisee in that geographic area. They must meet the franchisor's educational, experience, and financial criteria. For franchisees operating more than one Dave's Hot Chicken Restaurant, a Director of Operations is required. This individual oversees the operations of all restaurants owned by the franchisee. The Operating Principal and Director of Operations can be the same person, depending on the number of restaurants operated. Both the Operating Principal and Director of Operations must successfully complete the franchisor's initial training program. Regarding restaurant-level management, a new Dave's Hot Chicken Restaurant in a new Development Area needs at least six managers for the first 30 days of operation. For subsequent restaurants in the same area, a minimum of four managers is required for the first 30 days. After this initial 30-day period, each Dave's Hot Chicken Restaurant must maintain at least one manager (Certified Restaurant Manager or CRM). All personnel attending training must also successfully complete the "ServSafe Manager" program or a similar program specified by the franchisor. Dave's Hot Chicken provides initial training for the Operating Principal, Director of Operations, and up to three management persons for the first three restaurants. For the first restaurant, the Operating Principal and Director of Operations also need to attend an extra practice week of training and online training at least 60 days before opening, plus an eight-day grand opening of another Dave's Hot Chicken restaurant. On-site pre-opening training is provided by the franchisor's New Restaurant Opening (NRO) Team for a franchisee's first three restaurants. For the fourth and subsequent restaurants, the franchisee can conduct their own NRO training if they have a Certified Trainer (CT), the required number of CRMs, a New Restaurant Opening Leader (NRO Leader), and a Certified Franchise Training Restaurant (CFTR). Otherwise, a $40,000 fee applies for the franchisor's NRO Team. The franchisor offers four types of certifications: CFTR, NRO Leader, CRM, and CT. Initial certifications for the first CT, NRO Leader, CFTR, Operating Principal, and Director of Operations are free. Additional certifications, re-certifications, or multiple attempts incur fees. All managers are required to attend an annual general manager's summit, and franchisees (or their Operating Principal/major owner) along with NRO Leaders, CRMs, and CTs must attend the annual conference. Franchisees are solely responsible for all employment decisions, including hiring, firing, training, remuneration, and compliance with labor laws. The franchisor emphasizes that any direction provided regarding employment policies should be considered examples, and franchisees are responsible for establishing their own policies in consultation with local legal counsel. All employees, independent contractors, agents, or representatives with access to confidential information must sign a Confidentiality Agreement or a System Protection Agreement.