What is considered a 'Non-Traditional Restaurant' for an Hck Hot Chicken franchise?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If your HCK Hot Chicken Restaurant is located in a "Non-Traditional Venue," it will be referred to as a "Non-Traditional Restaurant." A "Non-Traditional Venue" is a facility operated under the HCK Hot Chicken trademarks located within another primary business or in conjunction with other businesses or at institutional settings, including toll roads, train stations, amusement parks, and all properties controlled by the amusement park, travel stations, hotels and motels, ships, ports, piers, casinos, stadiums, airports, theatres, big box retailers, building supply stores, warehouse club stores, colleges and universities, schools, hospitals, military and other governmental facilities, office or in-plant food service facilities, shopping mall food courts operated by a master concessionaire, grocery stores, outlet malls, supermarkets and convenience stores, and any site for which the lessor, owner or operator shall have indicated its intent to prefer or limit the operation of its food service facilities to a master concessionaire or contract food service provider. If you sign a Franchise Agreement for a Non-Traditional Restaurant, you must sign (in addition to our standard Franchise Agreement) the addendum attached in Exhibit I ("Non-Traditional Location Addendum"). Non-Traditional Restaurants may share their premises with other businesses, within a host facility, and may provide limited menu items and limited or no delivery. Typically, you will sign a lease with the host facility.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, a "Non-Traditional Restaurant" is defined as a Hck Hot Chicken Restaurant located in a "Non-Traditional Venue." The document specifies that a "Non-Traditional Venue" includes facilities within another primary business, in conjunction with other businesses, or at institutional settings. These locations encompass a wide array of venues, such as toll roads, train stations, amusement parks and all properties controlled by the amusement park, travel stations, hotels and motels, ships, ports, piers, casinos, stadiums, airports, theatres, big box retailers, building supply stores, warehouse club stores, colleges and universities, schools, hospitals, military and other governmental facilities, office or in-plant food service facilities, shopping mall food courts operated by a master concessionaire, grocery stores, outlet malls, supermarkets and convenience stores, and any site for which the lessor, owner or operator shall have indicated its intent to prefer or limit the operation of its food service facilities to a master concessionaire or contract food service provider. Franchisees considering a non-traditional venue must also sign an additional addendum to the standard franchise agreement.
For a prospective Hck Hot Chicken franchisee, understanding this definition is crucial because it dictates the type of location they can operate and the specific requirements they must meet. Non-Traditional Restaurants may have different operational characteristics compared to traditional restaurants, such as shared premises, limited menus, and restricted delivery options. These differences can impact the initial investment, operating costs, and potential revenue streams. The franchisee typically leases the space from the host facility, adding another layer of complexity to the business arrangement.
Furthermore, the requirement to sign a "Non-Traditional Location Addendum" indicates that these locations come with specific terms and conditions that differ from standard franchises. This addendum likely addresses issues unique to non-traditional venues, such as operational restrictions imposed by the host facility, revenue sharing agreements, and compliance with the host's policies and procedures. Therefore, prospective franchisees should carefully review this addendum to fully understand their obligations and the potential limitations of operating in a non-traditional setting.
In summary, Hck Hot Chicken distinguishes between traditional and non-traditional venues, with the latter encompassing a broad range of locations integrated within other businesses or institutions. Franchisees opting for a Non-Traditional Restaurant must be aware of the specific requirements and potential limitations associated with these venues, as outlined in the Franchise Agreement and the Non-Traditional Location Addendum.