Can Hck Hot Chicken change the prices of goods and services sold to franchisees?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor (or such Affiliate) may change the prices, delivery terms and other terms relating to its sale of goods, services, products, and supplies ("Goods and Services") to Franchisee on prior written notice, provided, that such prices shall be the same as the prices charged to similarly situated Franchisees (excluding shipping, transportation, warehousing, insurance and related costs and expenses).
Such prices shall be Franchisor's (or the Affiliate's) then-current prices, which may change from time to time.
Franchisee further acknowledges that prices the Franchisor (or the applicable Affiliate) charges to Franchisee may include a profit to Franchisor and may be higher than Franchisor's (or its Affiliate's) internal prices allocated or charged to Franchisor or Affiliate-owned Restaurant.
Presently, Franchisor (or its Affiliate) expects to receive a mark-up based on its or their cost of goods sold.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken can change the prices of goods and services sold to franchisees. Specifically, Hck Hot Chicken (or its affiliate) may modify the prices, delivery terms, and other conditions related to the sale of goods, services, products, and supplies to franchisees.
This change in price can occur with prior written notice to the franchisee. However, the prices charged to the franchisee must be the same as those charged to other similarly situated franchisees. This excludes costs related to shipping, transportation, warehousing, insurance, and related expenses.
The prices charged will be Hck Hot Chicken's (or its affiliate's) current prices, which are subject to change. The document also clarifies that the prices charged to franchisees may include a profit for Hck Hot Chicken and may be higher than the internal prices allocated to Hck Hot Chicken or affiliate-owned restaurants. Hck Hot Chicken anticipates receiving a markup based on its cost of goods sold.