What is the condition for an Area Developer to assign the Development Agreement for Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
7.3.1 This Development Agreement has been entered into by Franchisor in reliance upon and in consideration of the singular personal skill, qualifications and trust and confidence reposed in Area Developer. Neither Area Developer nor any Owner shall cause or permit any Assignment unless Area Developer shall have obtained Franchisor's prior written consent, which consent may be withheld for any reason whatsoever in Franchisor's judgment, and shall comply with Franchisor's right of first refusal pursuant to Section 7.3.4. Except as provided in Section 7.2.2, Area Developer acknowledges and agrees that it will not be permitted to make an Assignment of this Development Agreement or sell, gift, convey, assign or transfer the assets used in any of the Restaurants developed hereunder or any Franchise Agreement executed pursuant to this Development Agreement except in conjunction with a concurrent Assignment to the same approved assignee of all of the assets used in all of said Restaurants, and all of the Franchise
Agreements executed pursuant to this Development Agreement or at Franchisor's election the execution by the assignee of new Franchise Agreements on Franchisor's Then-current form for each of the Restaurants then developed or under deve
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, an Area Developer needs to get prior written consent from Hck Hot Chicken to assign the Development Agreement. This consent can be withheld for any reason at Hck Hot Chicken's discretion.
Furthermore, Hck Hot Chicken has entered into the Development Agreement based on the Area Developer's specific skills, qualifications, trust, and confidence. The Area Developer also needs to comply with Hck Hot Chicken's right of first refusal as per Section 7.3.4 of the agreement.
Except as provided in Section 7.2.2, the Area Developer is not allowed to assign the Development Agreement or transfer assets used in the restaurants developed under the agreement, unless it's done alongside a concurrent assignment to the same approved assignee of all assets used in all restaurants and all Franchise Agreements executed under the Development Agreement. Alternatively, Hck Hot Chicken can choose to have the assignee execute new Franchise Agreements based on Hck Hot Chicken's current form for each restaurant developed or under development.