When is the Continuing Royalty fee due for a Hck Hot Chicken franchise?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | Due Date | Remarks | |
|---|---|---|---|
| (Note 1) | |||
| Continuing Royalty (Note 2) | 6% of Gross Sales | Due on Wednesday of each week | The “Continuing Royalty” is based on “Gross Sales” during the previous week. Payments are made via an electronic funds transfer (“EFT”). Your Continuing Royalty is an ongoing payment that allows you to use the marks and the intellectual property of the System and pays for our ongoing support and assistance. |
| Brand Fund Contribution (Note 2) | Currently 2% of weekly Gross Sales (may be increased to 4% of weekly Gross Sales) | Same as Continuing Royalty | You must contribute 2% of your Gross Sales to our system-wide “Brand Fund” for our use in developing and building the HCK Hot Chicken brand (“Brand Fund Contribution”). We reserve the right to increase this fee to 4% once we have 50 Restaurants in operation. |
| Local Advertising, Marketing, and Promotional Expenditure | 1% of Gross Sales | In addition to the Brand Fund Contributions, you must spend a minimum of 1% per month on local advertising and promotion implemented in a format and using materials and designs approved by us. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Continuing Royalty fee, which is 6% of Gross Sales, is due on Wednesday of each week. This royalty payment is based on the Gross Sales from the previous week. Hck Hot Chicken requires that these payments be made via electronic funds transfer (EFT).
The Continuing Royalty allows a franchisee to use Hck Hot Chicken's trademarks and intellectual property, and it also covers the ongoing support and assistance provided by the franchisor. Gross Sales include all revenues received, whether in cash, credit, or barter, for any goods, merchandise, services, or products sold in or from the restaurant, or promoted under Hck Hot Chicken's trademarks or system. Gross Sales also include proceeds from any business interruption insurance.
It is important to note that Hck Hot Chicken also requires a Brand Fund Contribution, which is currently 2% of weekly Gross Sales and may increase to 4% once there are 50 restaurants in operation. This contribution is due at the same time as the Continuing Royalty. Additionally, franchisees must spend a minimum of 1% of Gross Sales per month on local advertising and promotion, using materials approved by Hck Hot Chicken.