What constitutes 'abandonment' of a Hck Hot Chicken franchised restaurant, leading to potential termination?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3 Option to Terminate Without Opportunity to Cure.
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 Hck Hot Chicken's 2025 Franchise Disclosure Document, abandonment of the franchised restaurant can lead to termination of the franchise agreement without an opportunity to cure the default. Hck Hot Chicken defines 'abandon' as encompassing several scenarios.
First, if a franchisee fails to keep the restaurant open and operating for business for three consecutive days, it is considered abandonment, unless otherwise provided in the HCK Hot Chicken Brand Standards Manual. Second, abandonment occurs if the franchisee fails to keep the restaurant open for any period that leads Hck Hot Chicken to reasonably believe the franchisee does not intend to continue operating the restaurant. This does not apply if the failure to operate is due to Force Majeure, provided the franchisee continues to comply with the agreement.
Further, abandonment includes failing to actively and continuously maintain and answer the telephone listed for the restaurant solely with the "HCK Hot Chicken" name. It also covers situations where the lessor withdraws permission, preventing the franchisee from continuing operations. Finally, if the restaurant is closed due to legal requirements resulting from the franchisee's violation of the franchise agreement, it is also considered abandonment.