Who bears the cost of training for a replacement Operating Principal for an Hck Hot Chicken franchise?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If during the Term the Operating Principal is not able to continue to serve in such capacity or no longer qualifies to act as such in accordance with this Section (including Franchisor's subsequent disapproval of such person), Franchisee shall promptly notify Franchisor of such occurrence.
Thereafter, Franchisee shall promptly, but not later than 30 days after the prior Operating Principal ceases to serve Franchisee, (w) designate a replacement operating principal who meets Franchisor's then-current qualification requirements, (x) provide Franchisor with such information about such new Operating Principal as Franchisor may request, (y) cause such replacement Operating Principal to undergo, at Franchisee's cost, such training as Franchisor may require, and (z) obtain Franchisor's written acceptance of such person as the Operating Principal.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with training a replacement Operating Principal. Specifically, if the current Operating Principal is no longer able to fulfill their duties or no longer meets the franchisor's qualifications, the franchisee must promptly find a replacement.
The franchisee has 30 days to designate a replacement Operating Principal who meets Hck Hot Chicken's requirements. The franchisee must then provide Hck Hot Chicken with the necessary information about the new Operating Principal and ensure that the replacement undergoes the required training.
Importantly, the FDD clearly states that this training is at the franchisee's cost. This means the franchisee will bear the financial burden of ensuring the replacement Operating Principal is adequately trained to meet Hck Hot Chicken's standards. This cost could include training fees, travel expenses, and any other associated costs deemed necessary by Hck Hot Chicken.