On what basis do company-owned Hck Hot Chicken restaurants contribute to the Brand Fund?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Each franchisee will be required to contribute to the Brand Fund, but certain franchisees may contribute on a different basis depending on when they signed their Franchise Agreement or where their Restaurant is located (such as Non-Traditional Venues). Company-owned will contribute to the Brand Fund on the same basis as franchisee Restaurants.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING,COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–37)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken FDD, company-owned restaurants contribute to the Brand Fund on the same basis as franchisee restaurants. The standard Brand Fund contribution is currently equal to two percent of weekly Gross Sales. However, Hck Hot Chicken retains the right to increase this contribution to four percent once there are at least 50 operating restaurants.
This means that company-owned Hck Hot Chicken locations do not receive preferential treatment regarding Brand Fund contributions. They are subject to the same percentage of gross sales contribution as franchised locations. This policy ensures that all restaurants, regardless of ownership, contribute equitably to the Brand Fund, which is used for marketing, advertising, and promotion of the Hck Hot Chicken brand.
Prospective franchisees should be aware that the Brand Fund contribution rate is subject to change. While currently set at two percent, Hck Hot Chicken can increase it to four percent under certain conditions. Franchisees should factor this potential increase into their financial projections. Additionally, franchisees in local or regional advertising cooperatives may be required to contribute up to 2% of monthly Gross Sales to the cooperative, which contribution may be applied toward the franchisee's Local Advertising Requirement.