factual

What constitutes a 'repeated default' that could lead to termination of the Hck Hot Chicken franchise agreement?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 14.3.3 Repeated Defaults.

If Franchisee shall default in any obligation as to which Franchisee has previously received two or more written notices of default from Franchisor setting forth the default complained of within the preceding 12 months, such repeated course of conduct shall itself be grounds for termination of this Agreement without further notice or opportunity to cure.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)

What This Means (2025 FDD)

According to the 2025 Hck Hot Chicken Franchise Disclosure Document, a 'repeated default' occurs when a franchisee defaults on any obligation for which they have already received two or more written notices of default from Hck Hot Chicken within the preceding 12 months. This repeated course of conduct is grounds for termination of the franchise agreement without further notice or opportunity to cure the default.

This means that if a Hck Hot Chicken franchisee makes the same mistake or violates the franchise agreement more than twice in a year, after receiving written warnings each time, Hck Hot Chicken can terminate the agreement. This is a stricter standard than many franchises, which usually allow a cure period for most violations. The franchisee loses the opportunity to correct the issue and maintain their franchise if the same default occurs repeatedly.

This policy emphasizes the importance of addressing and correcting any issues promptly after receiving a notice of default from Hck Hot Chicken. Franchisees should implement systems to prevent recurrence of any violations to avoid potential termination. It is crucial for prospective franchisees to understand this clause, as repeated mistakes, even if minor, can lead to the loss of their franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.