For Hck Hot Chicken, what is the Area Developer's responsibility regarding finding sites for Restaurants?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
6.1 Site Review
- 6.1.1 When Area Developer has located a proposed site for construction of a Restaurant, Area Developer shall submit to Franchisor such demographic and other information regarding the proposed site and neighboring areas as Franchisor shall require, in the form prescribed by Franchisor ("Site Review Request"). Franchisor may seek such additional information as it deems necessary within 14 days of submission of Area Developer's Site Review Request, and Area Developer shall respond promptly to such request for additional information. If Franchisor shall not deliver written notice to Area Developer that Franchisor accepts the proposed site, within 14 days of receipt of Area Developer's fully and accurately completed Site Review Request, or within 14 days after receipt of such additional requested information, whichever is later, the site shall be deemed rejected. If the Franchisor accepts the proposed site it shall notify Area Developer of its acceptance of the site.
- 6.1.2 Although Franchisor may voluntarily (without obligation) assist Area Developer in locating an acceptable site for a Restaurant, neither Franchisor's said assistance, if any, nor its acceptance of any proposed site, whether initially proposed Area Developer or by Franchisor, shall be construed to insure or guarantee the profitable or successful operation of the Restaurant at that site by Area Developer, and Franchisor hereby expressly disclaims any responsibility therefor. Area Developer acknowledges its sole responsibility for finding each site for the Restaurants it develops pursuant to this Development Agreement.
- 6.1.3 Unless waived by Franchisor in whole or in part, upon submitting a fourth or subsequent Site Review Request to Franchisor for review, Area Developer shall reimburse Franchisor for all costs and expenses of Franchisor incurred in reviewing the Site Review Requests, including payment to consultants and agents retained by Franchisor to assist in conducting such review and including a reasonable allocation of overhead and administrative expenses.
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Area Developer has the primary responsibility for finding suitable sites for Hck Hot Chicken restaurants within their designated development area. While Hck Hot Chicken may offer voluntary assistance in locating sites, this assistance does not guarantee the profitability or success of the restaurant at that location. The Area Developer bears the sole responsibility for identifying and securing each site for the restaurants they plan to develop under the Area Development Agreement.
When an Area Developer identifies a potential site, they must submit a Site Review Request to Hck Hot Chicken, including demographic and other required information about the proposed location and surrounding areas. Hck Hot Chicken has the option to request additional information within 14 days of receiving the Site Review Request, and the Area Developer is expected to respond promptly. Hck Hot Chicken then has 14 days from receipt of the completed Site Review Request (or additional information, if requested) to either accept or reject the proposed site. Failure to provide written notice of acceptance within this timeframe results in the site being deemed rejected.
It's important to note that Hck Hot Chicken may charge the Area Developer for the costs associated with reviewing site requests. Specifically, upon submitting a fourth or subsequent Site Review Request, the Area Developer may be required to reimburse Hck Hot Chicken for all expenses incurred during the review process. These expenses can include payments to consultants and agents, as well as a reasonable allocation of overhead and administrative costs. This reimbursement requirement can add to the financial burden of the Area Developer as they expand their Hck Hot Chicken operations.