How to Finance a Houston TX Hot Chicken Franchise: Kitchen Costs
By Anthony Cornella
A Houston TX Hot Chicken franchise loan typically funds a fast-casual build-out: a leased space, a hood and fryer line, a front counter and the working capital to carry a new restaurant through opening. The brand, often shortened to HHC, began in 2020 and now lists locations in several states and abroad on its own website.
This article covers what we could verify about the brand, which costs and fees to confirm in the Franchise Disclosure Document (FDD), what the brand’s SBA Franchise Directory listing and its notes mean, and how buyers usually assemble financing for a new or existing restaurant.
US Professional Funding is not affiliated with, sponsored by or endorsed by Houston TX Hot Chicken; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Houston TX Hot Chicken Franchise Loan at a Glance
- Concept: fast-casual hot chicken restaurant serving sandwiches, tenders, loaded fries and shakes.
- Founded: 2020, by Houston Crosta and Edmond Barseghian, according to the company.
- Footprint: the company’s website lists 27 open locations in 2026, across Arizona, California, Idaho, Michigan, Nevada, Ohio, Texas, Utah, Washington and the United Kingdom, plus 2 under construction.
- Fees and investment: the franchise fee, royalty, marketing fund and Item 7 investment range were not published on pages we could verify; get them from the current FDD.
- SBA Franchise Directory: listed under code S7108, with notes on lien position and lease documents.
What Is Houston TX Hot Chicken?
Houston TX Hot Chicken was founded in 2020 by Houston Crosta and Edmond Barseghian as what the company calls a small passion project. It describes its food as both Texas hot chicken and Nashville hot chicken, built around custom spice blends.
The menu. The signature item is a hot chicken sandwich with house sauce on a brioche bun, served with fries, pickles and slaw. The menu also includes tenders, waffles, loaded fries, salads, lemonades, milkshakes and cookies. The company says its chicken is all natural, free range, responsibly sourced and never frozen.
Where it operates. The company’s location list shows its largest cluster in the Las Vegas area, with further restaurants in Utah, Arizona, California, Idaho, Texas, Washington, Michigan and Ohio, and an international presence in the United Kingdom.
Why lenders view it the way they do. Lenders see a young, fast-growing chicken concept with a focused menu and a relatively simple kitchen. Because the system is still building its track record, lenders lean heavily on the operator’s restaurant experience, liquidity and site quality.
Houston TX Hot Chicken Franchise Costs
Initial franchise fee. Item 5 of the FDD discloses the initial franchise fee, any multi-unit or development fees and refund conditions. We could not verify the current amount from the franchisor’s own materials, so request the latest FDD.
Real estate and build-out. Most fast-casual chicken restaurants open in leased inline, end-cap or pad sites. Build-out often includes plumbing, grease traps, electrical upgrades, a type I hood and fire suppression, walk-in coolers, finishes and signage. Costs vary widely with the condition of the space and any landlord tenant improvement allowance. Our article on restaurant build-out financing explains how lenders approach these costs.
Kitchen equipment. Expect fryers, breading stations, refrigeration, holding equipment, shake machines, a point-of-sale system and digital ordering hardware.
Opening costs and working capital. Plan for opening inventory, hiring and training, grand-opening marketing, deposits and additional funds to cover the first months of operation.
Total investment. Item 7 of the FDD gives the estimated initial investment range and its assumptions. A typical Item 7 table for a fast-casual restaurant includes:
- Initial franchise fee
- Leasehold improvements and construction
- Kitchen equipment, furniture and fixtures
- Signage and decor
- Point-of-sale and technology systems
- Opening inventory and supplies
- Grand-opening marketing
- Rent and utility deposits, permits and insurance
- Additional funds for the initial operating period
These are standard categories, not the brand’s specific ranges; confirm each line in the current FDD.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing. Item 6 lists the royalty, brand or marketing fund contribution, local advertising requirements and technology fees. Because most of these are a percentage of gross sales, they reduce the cash available for debt service before rent and payroll.
Supply costs. Chicken is the core commodity, so price swings affect margins directly. Ask how the system handles approved suppliers and pricing.
Remodel and refresh obligations. Check the franchise agreement for required updates to equipment, signage or decor during the term.
How lenders factor fees in. Lenders project sales, subtract food and labor costs, royalty, marketing contributions and rent, and compare the remaining cash flow with proposed loan payments. A realistic sales ramp matters more for a young brand than for a mature one.
Franchisor Requirements for New Owners
The franchisor’s minimum net worth, liquid capital and experience requirements were not published on pages we could verify. Expect the franchise development team to review your restaurant or management background, your liquidity and your ability to open one or more locations. Many young restaurant systems favor operators who can commit to multiple units.
The approval process. Typically you inquire, receive and review the FDD, meet the franchise team, validate with existing owners and receive approval before signing. Line up financing conversations early so funding is ready when a site is secured.
Ways to Own a Houston TX Hot Chicken
A new restaurant. Most owners open a new location. Lenders underwrite startups on the business plan, the site and the operator’s experience. Our overview of restaurant start-up financing covers this route.
Buying an existing restaurant. As the system matures, existing locations may come up for sale. A resale gives lenders actual sales history to underwrite, subject to franchisor transfer approval. See our article on buying a franchise resale.
Multi-unit development. Owners who commit to several locations sign a development schedule and finance each restaurant as it opens.
Financing Options for a Houston TX Hot Chicken Franchise
SBA 7(a) loans. Because the brand is listed on the SBA Franchise Directory, a Houston TX Hot Chicken franchise loan can use the SBA 7(a) program to finance the franchise fee, build-out, equipment and working capital for qualified borrowers.
SBA 504 loans. If you buy or build the restaurant’s real estate, the SBA 504 program is designed for owner-occupied property and long-lived equipment. Pay attention to the directory notes below if the property will secure the loan.
Conventional term loans. Experienced multi-unit operators with strong balance sheets may use a conventional business loan, especially for later units.
Equipment financing. Fryers, refrigeration, hoods, shake machines and ordering kiosks can be financed separately so you keep more cash for opening. See restaurant equipment financing and leasing.
Working capital and lines of credit. Opening a restaurant means payroll, inventory and marketing before sales stabilize. A line of credit can bridge that ramp-up and seasonal swings. Learn about restaurant working capital.
Seller financing on resales. A seller may carry part of the price of an existing restaurant. Any seller note must be acceptable to the senior lender, is typically subordinate to it and may be limited under SBA rules.
SBA Loans for Houston TX Hot Chicken Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. A listing does not approve any borrower; it allows SBA lenders to move forward without a separate review of the franchise relationship.
The brand’s listing. Houston TX Hot Chicken appears under code S7108 with two notes.
Note 1: lien position. The lender or Certified Development Company must secure the appropriate lien position on all collateral in accordance with the SBA’s standard operating procedures. In plain English, the lender must make sure its claims on the business’s equipment, real estate or other collateral rank where SBA rules require, and nothing in the franchise documents should undercut that.
Note 2: lease documents. When the real estate where the restaurant is located will secure the SBA loan, the franchisee or its affiliate may not execute a Collateral Assignment of Lease or Addendum to Lease Agreement. These documents normally give the franchisor rights in a leased site, such as stepping in if the lease ends. If an owner or affiliate holds the property and pledges it to the lender, signing them could conflict with the lender’s mortgage, so they are left out. For most owners who simply lease, the note will not change the lease package.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. Prepare personal tax returns, a personal financial statement, a restaurant management resume, the FDD and franchise agreement, the lease or letter of intent and a detailed budget. Our SBA loan calculator provides planning estimates only.
How Lenders Evaluate a Houston TX Hot Chicken Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement and generally require a personal guarantee.
Net worth and liquidity. Lenders want an equity injection and reserves after closing, especially for a newer brand.
Industry experience. Restaurant management, multi-unit or quick-service experience strengthens a Houston TX Hot Chicken franchise loan request considerably.
Business plan and projections. Base projections on the site’s trade area, traffic, competition, labor rates and chicken costs, with a conservative ramp-up.
The FDD and franchise agreement. Lenders focus on Items 5, 6, 7, 17 and 19. Learn more about how lenders read a Franchise Disclosure Document.
Site and lease. Lenders review lease term, renewal options, rent escalations, tenant improvement allowances and whether the lease runs at least as long as the loan.
Historical financials for resales. Expect several years of profit and loss statements, sales reports and tax returns from the seller.
Kitchen Equipment and Build-Out
A hot chicken kitchen centers on fryers and breading, so ventilation and fire suppression are major line items. Holding cabinets, walk-in refrigeration, shake and beverage equipment and digital ordering add to the package. Equipment has collateral value, which helps lenders, but specialized leasehold improvements usually do not.
Multi-Unit Growth and Development Agreements
Development agreements require owners to open a set number of restaurants on a schedule. Lenders typically finance each unit separately and look at the performance of earlier units before funding the next. Read more about multi-unit franchise financing before committing to a development schedule.
Real-World Scenarios
A restaurant manager opening a first unit. A general manager with quick-service experience uses savings and an SBA 7(a) loan to fund the franchise fee, build-out and equipment, with a working capital reserve for the first months.
A multi-unit operator adding the brand. An operator of other restaurants signs a development agreement and finances the first location with a conventional loan backed by existing cash flow.
An owner buying the building. An owner buys a pad site and finances it with an SBA 504 loan. Because the real estate secures the loan, the lease addendum and collateral assignment of lease are not signed, in line with the directory note.
Common Mistakes to Avoid
- Signing a lease before confirming financing and franchisor site approval
- Underestimating hood, fire suppression and grease trap costs
- Projecting mature sales from day one
- Ignoring chicken price volatility in food cost assumptions
- Skipping the SBA directory notes when real estate will secure the loan
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Houston TX Hot Chicken Franchise
Step 1: Request the FDD. Confirm fees, the Item 7 range and franchisor requirements.
Step 2: Validate with owners. Ask existing franchisees about build-out costs, ramp-up and support.
Step 3: Identify a site. Work with the franchisor on site approval and lease terms.
Step 4: Build your plan. Prepare projections and a full sources-and-uses budget.
Step 5: Talk with a financing specialist. Compare SBA 7(a), SBA 504, conventional and equipment options for your Houston TX Hot Chicken franchise loan.
Step 6: Apply and close. Submit your loan package and coordinate closing with lease signing and construction.
Houston TX Hot Chicken Franchise Loan FAQs
How much does a Houston TX Hot Chicken franchise cost?
The total investment is disclosed in Item 7 of the FDD. We could not verify a current range from the franchisor’s own materials, so request the latest FDD.
What is the franchise fee and royalty?
Item 5 lists the initial fee and Item 6 lists the royalty and marketing contributions. Confirm them in the current FDD before you apply.
Is Houston TX Hot Chicken eligible for SBA loans?
Yes. The brand is listed on the SBA Franchise Directory under code S7108, so qualified borrowers can apply for SBA 7(a) and 504 financing.
What do the SBA directory notes mean?
The lender must secure the correct lien position on all collateral, and if the restaurant’s real estate secures the loan, the franchisee may not sign a Collateral Assignment of Lease or Addendum to Lease Agreement.
Can I finance the kitchen equipment separately?
Yes. Fryers, refrigeration and other equipment can often be financed or leased separately to preserve cash.
Can I buy an existing location?
Yes, if one is for sale and the franchisor approves the transfer. Lenders underwrite the restaurant’s actual results.
Can a first-time owner get financing?
Possibly. Lenders weigh restaurant management experience heavily, so first-time owners with industry backgrounds have the best chance.
Does the franchisor offer financing?
Item 10 of the FDD discloses any franchisor financing. Review it and compare it with outside loan options.
How long is the franchise term?
Item 17 of the FDD sets the term, renewal and transfer conditions. Lenders like loans that fit within the remaining term.
Final Thoughts
Houston TX Hot Chicken offers a focused menu and a growing footprint, but its newer franchise system means lenders will look closely at the operator and the site. Buyers who confirm every figure in the FDD, plan for a hood-heavy build-out and keep healthy reserves give themselves the strongest chance at approval.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
