Dave's Hot Chicken Franchisee Files for Chapter 11 Bankruptcy
A franchisee operating multiple Dave's Hot Chicken locations in Pennsylvania has filed for Chapter 11 bankruptcy. The move comes as the fast-growing chain, with over 300 units, continues its expansion.
TIG Reaper LLC, a franchisee of Dave's Hot Chicken, has filed for Chapter 11 bankruptcy protection in the U.S. The Langhorne, Pennsylvania-based operator, which runs Dave's Hot Chicken restaurants in Philadelphia and Willow Grove, filed its petition on September 21. The company reported assets and liabilities ranging between $10 million and $50 million.
The filing followed a lawsuit by Bank Midwest alleging that TIG Reaper LLC may have failed to meet certain debt obligations. The Chapter 11 filing provides an automatic stay, pausing all litigation against the franchisee.
Dave's Hot Chicken corporate entity has not filed for bankruptcy. A spokesperson for the chain stated that the situation involves an independently owned and operated franchisee and its lender, and does not impact the broader Dave's Hot Chicken franchise system. The affected restaurants remain open, the spokesperson added.
The Dave's Hot Chicken chain, acquired by Roark Capital for $1 billion in 2025, has been pursuing aggressive expansion, with plans to open 140 new restaurants in 2026. Restaurant industry experts note that rapid growth, especially when coupled with significant debt, can strain individual operators and potentially lead to financial difficulties, even for popular brands.