Who is the auditor for Hck Hot Chicken, and where are they located?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Such information shall be broken down by categories of goods, foods and beverages sold, where possible.
Franchisor, its agents, or representatives may, at any reasonable time during normal working hours, audit or review Franchisee's books and records in accordance with generally accepted standards established by certified public accountants.
Franchisor may also conduct the audit at a site other than the Location and Franchise shall provide all information to Franchisor, its agents, or representatives, promptly upon demand (but not later than five days following the date of the request).
If any audit or other investigation reveals an
under-reporting or under-recording error, then upon demand Franchisee shall pay the amount determined to be owed, plus interest at the daily equivalent of twelve percent (12%) per year simple interest, not to exceed the highest rate permitted by Applicable Law. In addition, if any such audit or other investigation reveals an under-reporting or under-recording error of two percent (2%) or more or if Franchisee fails to submit any reports when due, then in addition to any other sums due and in addition to any other rights and remedies it may have, including the right to terminate this Agreement as provided in Section 14, the expenses of the audit/inspection shall be borne and paid by Franchisee upon billing by Franchisor, which shall include Franchisor's Travel Expenses and Wages and reasonable accounting and legal expense. Without limiting the foregoing, if such audit or other investigation reveals an under-reporting or under-recording error of five percent (5%) percent or more, Franchisor, in addition to any other rights and remedies it may have, including the right to terminate this Agreement as provided in Section 14, may require Franchisee to maintain and deliver to Franchisor from time to time, financial statements audited by an independent certified public accountant.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken FDD, the document does not explicitly state the name or location of the independent certified public accountant or auditing firm that performs the audit of Hck Hot Chicken's financial statements.
However, the FDD does outline requirements for franchisees to maintain adequate books and records for potential audits by the franchisor or its agents. It also mentions that if an audit reveals significant under-reporting of sales (5% or more), Hck Hot Chicken may require the franchisee to provide financial statements audited by an independent certified public accountant.
Prospective franchisees should ask Hck Hot Chicken for the name and contact information of their auditor and to review the audited financial statements for the past three years. This information is essential for a thorough understanding of the franchisor's financial health and stability. Furthermore, it would be prudent to understand the scope and frequency of audits that Hck Hot Chicken conducts on its franchisees, as well as the potential costs associated with these audits, especially if discrepancies are found.