Who is considered the 'Owner' in the Hck Hot Chicken Credit Card Authorization?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
This Credit Card Authorization (this "Authorization") is entered into as of the date signed below by the undersigned credit card account owner ("Owner"). Owner agrees that Hot Chikn Kitchn LLC ("HCK") may charge (in HCK's sole discretion) the account(s) listed below for payment of fees, interest charges, past due fees or other charges owed to HCK or HCK's approved supplier (as specified below), as follows:
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the 'Owner' in the Credit Card Authorization form is defined as the undersigned credit card account owner. This individual enters into the authorization, allowing Hck Hot Chicken to charge their account for various fees and charges.
This authorization grants Hck Hot Chicken the ability to charge the owner's account for continuing royalties, brand fund contributions, technology fees, training and certification fees, convention fees, inspection and evaluation fees, late fees, interest charges, past due fees, and other charges. This can occur when fees owed by the owner, or a company controlled by the owner, are past due or if an Electronic Funds Transfer (EFT) payment is unsuccessful. The agreement remains in effect for each Hck Hot Chicken Franchise Agreement of the owner, or a company controlled by them, throughout the duration of the applicable Franchise Agreement, unless Hck Hot Chicken agrees to an earlier termination.
The owner must maintain sufficient available credit in each account, with a minimum of $10,000, and notify Hck Hot Chicken of any changes to the account. Hck Hot Chicken may also charge a Late Fee of $100 per incident and interest on past due amounts. Additionally, Hck Hot Chicken may charge a service fee of up to four percent of the total charge for any payment made under the authorization.
A company is considered 'controlled by Owner' if the Owner is a guarantor of the Franchise Agreement between the company and Hck Hot Chicken, or if the Owner has a 10 percent or greater shareholder, partnership, or member interest in the company, or is the sole proprietor of the company. This definition extends the Owner's responsibilities to entities they significantly control, ensuring that Hck Hot Chicken can collect fees owed by those entities through the credit card authorization.