Can the Hck Hot Chicken Brand Fund be used to pay Franchisor or its Affiliates?

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Brand Fund can be used to pay the Franchisor or its affiliates. Specifically, the Brand Fund can cover payments to Hck Hot Chicken or its Affiliates for indirect costs and overhead related to the operation of its creative department(s) and the administration of the Brand Fund.

This means that a portion of the 2% of Gross Sales that franchisees contribute to the Brand Fund could be used to compensate Hck Hot Chicken or its affiliates for services they provide in managing the brand's marketing and advertising efforts. This is a fairly common practice in franchising, as the franchisor often has the expertise and resources to effectively manage these activities.

Prospective franchisees should consider this when evaluating the overall cost of the franchise. While the Brand Fund is intended to benefit all franchisees by promoting the brand, a portion of it will directly compensate the franchisor or its affiliates. It would be prudent for a potential franchisee to inquire about the specific allocation of Brand Fund expenditures to understand how much is used for these payments versus other marketing activities.