Al's Hot Chicken franchise
2022 filing · July 22, 2022
Al's Hot Chicken at a glance
A fast-casual restaurant serving Nashville-style hot chicken sandwiches, tenders and wings made with halal chicken. At the end of 2021 there were 2 Al's Hot Chicken locations in the US, all company-owned.
The business
- Franchisor
- Al's Hot Chicken Franchising, LLC
- The company that sells the franchises
- Franchisor based in
- Los Angeles, California
What you pay
- Cost to open
- $193K–$459K
- Fee, build-out and opening working capital
- Franchise fee
- $30,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross sales, paid weekly, plus 2% to the marketing fund
- Renewal fee
- $25,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 2
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 2
- Change in 3 years
- 0
- Franchised locations, 2019–2021
From Al's Hot Chicken Franchising, LLC’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Al's Hot Chicken among all franchises with the same figure.
| Figure | Al's Hot Chicken | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $326,125 | Costs less than 53% of franchises |
| Franchise feePaid once, when you sign | $30,000 | Lower than 72% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 2 | Fewer than 82% of franchises |
How much a Al's Hot Chicken franchise costs
Opening one Al's Hot Chicken costs an estimated $193,350 to $458,900. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Al's Hot Chicken Franchising, LLC, 2022 filing, page 15
Al's Hot Chicken franchise fee
The franchise fee is $30,000. You pay it when you sign the franchise agreement.
Source: Al's Hot Chicken Franchising, LLC, 2022 filing, page 10
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid weekly, plus 2% to the marketing fund. |
|---|---|
| Software subscription | Currently, $150- $250 per month |
| Transfer fee | $5,000 |
| Renewal fee | $25,000 |
| Replacement/Additional Training fee | Currently, $5,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Al's Hot Chicken Franchising, LLC, 2022 filing, page 10
Other fees as filed, from pages 10–12. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Al's Hot Chicken does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Al's Hot Chicken Franchising, LLC, 2022 filing, page 38
- Estimate Estimated yearly sales per location
- $660K–$1.2M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Al's Hot Chicken compares
Of the 113 chicken franchises on this site, Al's Hot Chicken is the 11th cheapest to open and the 91st largest by number of locations.
| Figure | Al's Hot Chicken | Typical chicken brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $193K | $407K | $222K |
| Cost to open, high end | $459K | $868K | $477K |
| Franchise fee | $30K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 2 | 10 | 21 |
| Shares earnings figures | No | 61 of 113 | 2,147 of 3,352 |
Typical is the median across the 113 brands in chicken franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 0 (0) | 1 | 0 | 0 |
| 2020 | 0 (0) | 2 | 0 | 0 |
| 2021 | 0 (0) | 2 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: chicken franchise costs and franchise failure rates.
Source: Al's Hot Chicken Franchising, LLC, 2022 filing, page 39
Who owns Al's Hot Chicken?
Al's Hot Chicken franchises are sold by Al's Hot Chicken Franchising, LLC. Its filing names no parent company.
From Al's Hot Chicken Franchising, LLC’s 2022 filing, page 7.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Al's Hot Chicken Franchising, LLC, 2022 filing, litigation on page 9, bankruptcy on page 9
Al's Hot Chicken filings
The figures on this page come from Al's Hot Chicken Franchising, LLC’s 2022 filing, issued July 22, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | July 22, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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