HHC Franchising, LLC (HHC; Houston TX Hot Chicken)
The initial franchise fee is $40,000.
What is the HHC Franchising, LLC (HHC; Houston TX Hot Chicken) franchise?
HHC Franchising, LLC, known as Houston TX Hot Chicken, began in 2020 as a passion project co founded by Edmond Barseghian and Houston Crosta. Barseghian is a Swedish Armenian race car driver and entrepreneur who developed the original hot chicken recipe with his sister. The first physical location opened in Las Vegas in August 2021, and the corporate headquarters is located at 4305 Dean Martin Drive, Suite 185, Las Vegas, Nevada. By early 2026, the brand had grown to 30 locations across eight U.S. states, with more than 150 additional units in active development and over 100 franchise units sold. In October 2023, HHC secured a strategic growth partnership with Savory Fund, a Utah private equity firm managing over $750 million in assets. The leadership team includes President Brian Simowitz, who previously helped grow another chicken concept to over 200 locations, Vice President of Operations Matt Rush, and Vice President of Marketing Mario Drezo. Together, the leadership team has more than 150 years of industry experience. Barseghian has also built social media attention around the brand, including one viral video that reached 45 million views. PeerSense reviews HHC's investment structure, unit economics, growth, and competitive position so buyers can assess the opportunity beyond marketing materials. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders and is not a lender.
Fast casual restaurants have outpaced full service dining growth for more than a decade as consumers seek quality ingredients, bold flavors, and faster service. HHC's target customers are people ages 16 to 35, a group that is active in social media food content, restaurant discovery, and fast casual visits. The brand has developed nearly 400,000 social media followers. About 60% of sales come from off premise orders, 40% come from dine in business, and third party delivery represents roughly 20% of total sales. Nashville style hot chicken is becoming more competitive, though the category remains less consolidated than broader chicken segments. That leaves room for well capitalized and well operated brands to establish geographic positions before the segment matures. Consumer interest in experiential and flavor focused fast casual dining, the reach of short form video, and a young customer base that enjoys spicy food continue to support the category.
An HHC franchise requires substantial capital, and buyers should review the full ownership cost before submitting an inquiry. The initial franchise fee is $40,000. A December 2022 disclosure listed the fee at $50,000. Total initial investment is estimated at approximately $200,000 to $1.2 million. A more fully capitalized build out is estimated at $670,950 to $1,760,000, depending on the location, real estate format, and regional construction costs. The broader Other Food and Beverage industry has an average total investment of $210,893 to $461,179. HHC's ongoing royalty is 6% of gross sales, and franchisees contribute another 2% of gross sales to the marketing fund. The franchisor manages advertising across Google, Yelp, and Instagram, so individual franchisees do not manage that advertising spend independently. Liquid capital has been quoted at $190,000 for entry level thresholds. The inquiry form accepts candidates with $100,000 to $250,000 in liquid cash, and net worth options begin at $250,000. Older 2022 disclosures listed $1,000,000 in liquid capital and $1,500,000 in net worth. The October 2023 Savory Fund partnership adds institutional backing and supports franchise development infrastructure, which may be relevant to buyers exploring SBA financing. Multi unit development agreements are available. In January 2026, HHC announced 26 new franchise commitments, including an 11 unit agreement involving two Illinois operators and five unit agreements in Louisiana, Arkansas, and New York.
HHC restaurants use a focused fast casual model built around fresh, never frozen, all natural chicken prepared to order with eight signature spice levels. The range begins with No Spice and ends with Houston, We Have a Problem!, a 2 million Scoville heat unit option that requires customers to sign a waiver before eating it. The menu includes the hot chicken sandwich, tenders, salads, chicken tortilla soup, macaroni and cheese made in house, loaded fries, and waffle shakes. These items support both dine in ticket size and off premise order value. Franchisees complete a two week initial training program at the Las Vegas headquarters covering operational procedures, brand standards, product knowledge, and proprietary recipes. Ongoing support includes field consultants, marketing resources, site selection assistance, store build out guidance, grand opening marketing campaigns, and continuing operational advice. HHC launched a loyalty program powered by Thanx in August 2024, and the program had approximately 120,000 members. The program encourages repeat visits and gives the corporate team consumer behavior information for franchisee marketing decisions. Territory planning is intended to give franchise partners strategic exclusive footprints. HHC is pursuing markets near its existing eight state footprint and new states including Illinois, Louisiana, Arkansas, and New York. The brand prefers sites near colleges and universities because its 16 to 35 target audience overlaps with student populations and academic calendars. Catering is another developing revenue channel.
Approximately 25 locations were operating when that sales figure was generated, implying a rough system average approaching $1.1 million per unit. Actual results can differ substantially according to market maturity, site quality, and operating performance. HHC's focused menu, 60% off premise sales mix, and marketing model built around viral content may compare favorably with that benchmark, although buyers should assess their own market and operating assumptions.
HHC opened its first location in August 2021 and reached 25 locations by the end of 2024, a 79% year over year increase in unit count. By November 2025 and February 2026, the brand had reached 30 locations across eight states. In January 2026, HHC announced 26 new franchise commitments across four new U.S. markets. The company's franchise development materials report 30 plus open locations and 150 plus locations in development. More than 100 franchise units have already been sold, creating development visibility through 2027 and 2028. HHC was named a Breakout Brand on the Franchise Times Top 400 list, ranked No. 217 on the 2025 Inc. 5000 list, appeared on Fast Casual's Top 100 Movers and Shakers, received the Hot Concepts Award from Nation's Restaurant News, and was named a Food On Demand Outstanding Operator in 2026. Savory Fund formalized its partnership with HHC in October 2023. The firm manages over $750 million in restaurant sector assets and brings capital, operational infrastructure, strategic planning, and merger and acquisition expertise to concepts it supports. International development has begun, with franchises sold in Puerto Rico and the United Kingdom. Barseghian has expressed interest in bringing HHC to continental Europe. The company projects approximately 20 new locations in 2026 and targets 50 to 60 new openings per year afterward.
The intended HHC franchisee is an entrepreneurially minded operator with experience in food service, hospitality, or customer facing retail. The two week corporate training program and continuing operating support may also suit qualified candidates coming from other industries. HHC is actively seeking multi unit operators. The January 2026 development agreements included an 11 unit commitment from two Illinois operators and five unit agreements in Louisiana, Arkansas, and New York. These deals indicate a preference for franchisees with enough capital and operating capacity to develop full territories instead of single unit locations. Current territories include Arizona, California, Nevada, Washington, Texas, Utah, Idaho, and Michigan. New commitments cover Illinois, Louisiana, Arkansas, and New York. International opportunities are available in the United Kingdom and Puerto Rico for investors with cross border operating experience. HHC prefers real estate near colleges and universities and is interested in smaller markets where hot chicken competition remains limited. Its focus on customers ages 16 to 35 also makes universities, military bases, and dense suburban areas with young populations attractive. The period from franchise agreement execution to opening will depend on real estate, permitting, and build out conditions. Buyers should account for that timing when planning capital deployment against the $200,000 to $1.2 million franchise cost range.
HHC's investment case includes demand for spicy fast casual dining, a 79% year over year unit growth rate, institutional backing from Savory Fund, a leadership team with more than 150 years of combined experience, and a pipeline of 150 plus units in development. PeerSense assigns the brand a Loan Activity Score of 64 and a Moderate rating. That rating fits an emerging concept with meaningful growth potential and limited long term unit history. Investors should quantify the related risks through detailed due diligence. 217 ranking on the 2025 Inc. 5000 provide performance signals for review. PeerSense offers franchise due diligence resources that include SBA lending history, the Loan Activity Score, location maps with Google ratings, FDD financial data, and side by side comparison tools. Those resources can help buyers compare HHC with other limited service restaurant franchises across investment costs, unit development, market position, and operating considerations.
Loan Activity Score
64/100
SBA Default Rate
0.0%
Active Lenders
6
According to its Franchise Disclosure Document or public business records, HHC Franchising, LLC (HHC; Houston TX Hot Chicken) has 8 locations, all owned by franchisees. Public SBA loan records show 6 lenders made 11 loans to franchisees of HHC Franchising, LLC (HHC; Houston TX Hot Chicken). PeerSense calculates HHC Franchising, LLC (HHC; Houston TX Hot Chicken)'s score as 64 out of 100, using public SBA loan performance and recent lending activity.
8 locations
$40,000
8
8 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for HHC Franchising, LLC (HHC; Houston TX Hot Chicken)
11
Total SBA loans
$715K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for HHC Franchising, LLC (HHC; Houston TX Hot Chicken)
Loan Activity Score Breakdown
Growing (10 to 24 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
0.0%
vs 10.3% peer avg
SBA Loans
11
Total Volume
$7.9M
Active Lenders
6
2 selective
States
5
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for HHC Franchising, LLC (HHC; Houston TX Hot Chicken) based on SBA lending data
SBA Default Rate
0.0%
10.3% below peer avg
SBA Loan Volume
11 loans
Across 6 lenders
Lender Diversity
6 lenders
Avg 1.8 loans per lender
Payment Estimator
Estimated Monthly Payment
$5,176
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
HHC Franchising, LLC (HHC; Houston TX Hot Chicken), unit breakdown
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Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman