factual

Can the Hck Hot Chicken Brand Fund be used for local advertising?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor will use the Brand Fund for national, regional, or local advertising, public relations or promotional campaigns or programs designed to promote and enhance the image, identity, or patronage of franchised, and Franchisor-owned (including Affiliate-owned) Restaurants.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)

What This Means (2025 FDD)

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Brand Fund can be used for local advertising. Specifically, Hck Hot Chicken will use the Brand Fund for national, regional, or local advertising, public relations, or promotional campaigns. These campaigns are designed to promote and enhance the image, identity, or patronage of franchised and Hck Hot Chicken-owned restaurants, including those owned by affiliates.

This means that contributions to the Brand Fund by Hck Hot Chicken franchisees may be used to support advertising efforts in their local areas, as well as broader regional or national campaigns. The decision on how the Brand Fund is allocated is at the discretion of Hck Hot Chicken. Franchisees benefit from the Brand Fund through increased brand awareness and customer traffic driven by these advertising and promotional activities.

In addition to contributing to the Brand Fund, Hck Hot Chicken franchisees must spend 1% of their annual gross sales on local advertising. If a franchisee fails to meet this local advertising requirement, they must pay the difference to Hck Hot Chicken or, if established, to the Brand Fund. This ensures a baseline level of local advertising effort in addition to the Brand Fund's activities. Franchisees should be aware that Hck Hot Chicken maintains control over advertising materials and requires approval for any advertising not provided by them, with unauthorized advertising potentially incurring a $500 fee per occurrence, which is contributed to the Brand Fund.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.