What are Alternative Distribution Channels in the context of a Hck Hot Chicken franchise?

According to the 2025 Hck Hot Chicken Franchise Disclosure Document, Alternative Distribution Channels include methods such as grocery stores, supermarkets, convenience stores, the Internet, delivery, catering, catalog sales, telemarketing, or other direct marketing sales. Hck Hot Chicken reserves the right to sell products through these channels without compensating the franchisee.

This means that while franchisees operate their physical Hck Hot Chicken restaurants, the franchisor can also distribute products through various other avenues. These alternative channels could potentially compete with a franchisee's sales, as Hck Hot Chicken could sell directly to consumers through online platforms or retail locations without sharing any of the revenue with the franchisee.

Prospective franchisees should be aware that they will not receive compensation for sales made through these alternative distribution channels, even if those sales occur within their territory. This is a standard practice in many franchise systems, but it's crucial to understand the potential impact on a franchisee's revenue and market share. Franchisees are also restricted from using Alternative Distribution Channels such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales.