What must accompany an Hck Hot Chicken Area Developer's written request for consent to any Assignment?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall not offer, sell, or negotiate the sale of "HCK Hot Chicken" franchises to any third party, either in Area Developer's own name or in the name and/or on behalf of Franchisor, or otherwise subfranchise, sub act, sublicense, share, divide or partition this Development Agreement, and nothing in this Development Agreement will be construed as granting Area Developer the right to do so. Area Developer shall not execute any Franchise Agreement with Franchisor, or construct or equip any Restaurant with a view to offering or assigning such Franchise Agreement or Restaurant to any third party.
- 7.2.2 Notwithstanding Section 7.2.1, Area Developer may, with Franchisor's prior written consent, execute and contemporaneously assign a Franchise Agreement executed pursuant hereto to a separate Entity controlled by Area Developer (each a "Subsidiary"); provided and on condition that:
- (a) Upon Franchisor's request, Area Developer has delivered to Franchisor a true, correct, and complete copy of the Subsidiary's articles of incorporation or articles of organization, bylaws, operating agreement, partnership agreement, and other organizational documents, and Franchisor has accepted the same;
- (b) The Subsidiary's articles of incorporation or articles of organization, bylaws, operating agreement, and partnership agreement, as applicable, shall provide that its activities are confined exclusively to operating Restaurants;
- (c) Area Developer, directly owns and controls all of the Equity and voting rights of the Subsidiary;
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
Based on the 2025 FDD, an Hck Hot Chicken Area Developer is generally prohibited from subfranchising or assigning their Development Agreement. However, there is an exception where the Area Developer may, with Hck Hot Chicken's prior written consent, assign a Franchise Agreement to a separate Entity controlled by the Area Developer, referred to as a "Subsidiary".
For Hck Hot Chicken to consider this assignment, the Area Developer must provide a written request accompanied by specific documentation regarding the Subsidiary. This includes a true, correct, and complete copy of the Subsidiary's articles of incorporation or articles of organization, bylaws, operating agreement, partnership agreement, and other organizational documents. Hck Hot Chicken must then accept these documents.
Furthermore, the Subsidiary's organizational documents must stipulate that its activities are exclusively limited to operating Hck Hot Chicken Restaurants. The Area Developer must directly own and control all equity and voting rights of the Subsidiary, and the Subsidiary must be in good standing within its jurisdiction of organization. The person designated as the Operating Principal by the Area Developer must have exclusive day-to-day operational control over the Subsidiary, and the Subsidiary can conduct no business other than the operation of the Restaurant. Finally, the Subsidiary must assume all obligations under the Franchise Agreement via a written agreement acceptable to Hck Hot Chicken.