What constitutes abandonment of the Hck Hot Chicken franchised restaurant?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon receipt of notice by Franchisor upon the occurrence of any of the following events:
- 14.3.1 Abandonment.
If Franchisee shall abandon the Franchised Restaurant.
For purposes of this Agreement, "abandon" shall refer to (i) Franchisee's failure, at any time during the term of this Agreement, to keep the Premises or Franchised Restaurant open and operating for business for a period of three consecutive days, except as provided in the HCK Hot Chicken Brand Standards Manual, (ii) Franchisee's failure to keep the Premises or Franchised Restaurant open and operating for any period after which it is not unreasonable under the facts and circumstances for Franchisor to conclude that Franchisee does not intend to continue to operate the Franchised Restaurant, unless such failure to operate is due to Force Majeure (subject to Franchisee's continuing compliance with this Agreement), (iii) failure to actively and continuously maintain and answer the telephone listed by Franchisee for the Franchised Restaurant solely with the "HCK Hot Chicken" name (as the same may be modified in accordance with this Agreement); (iv) the withdrawal of permission from the applicable lessor that results in Franchisee's inability to continue operation of the Franchised Restaurant; or (v) closing of the Franchised Restaurant required by Applicable Law if such closing was not the result of a violation of this Agreement by Franchisor.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, abandonment of the franchised restaurant can occur under several specific conditions. If a franchisee fails to keep the restaurant open for business for three consecutive days, it can be considered abandonment, although exceptions may be outlined in the HCK Hot Chicken Brand Standards Manual.
Abandonment can also be determined if the franchisor concludes that the franchisee does not intend to continue operating the restaurant, based on the facts and circumstances, unless the failure to operate is due to a Force Majeure event, provided the franchisee continues to comply with the agreement. Additionally, failure to actively maintain and answer the telephone listed for the restaurant solely with the "HCK Hot Chicken" name can be construed as abandonment.
Further, abandonment includes situations where the franchisee loses permission from the lessor, resulting in the inability to continue operations, or if the restaurant is closed due to legal requirements resulting from the franchisee's violation of the franchise agreement. These conditions provide Hck Hot Chicken with grounds to terminate the franchise agreement without allowing the franchisee an opportunity to rectify the situation.