What costs are included in the Hck Hot Chicken Technology Fee?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to any amounts that the Franchisee may be required to pay to third party providers, suppliers or vendors related to the computer and technology system to be operated in the Franchised Restaurant, Franchisee must pay Franchisor the then-current "Technology Fee" for costs incurred by the Franchisor for technology management and certain technologies used in the operation of the Franchised Restaurant.
Franchisee shall pay Franchisor the Technology Fee on the first Wednesday of each month beginning in the month following the date Franchisee opens the Restaurant.
The Technology Fee for the first partial month of operations shall be pro-rated and delivered with the first payment of the Technology Fee.
The Technology Fee is intended to be a "pass through" of costs incurred by Franchisor in providing technology services to Franchisee.
As a result, the Technology Fee shall only consist of amounts that: (i) Franchisor is charged by vendors, suppliers, and affiliates without mark-up by Franchisor; or (ii) Franchisor reasonably incurs in creating, developing, implementing, administering, andmaintaining technology services to franchisees generally or that are specifically requested by Franchisee.
Franchisor reserves the right to: (i) change or add approved suppliers of these services at any time, in Franchisor's sole discretion; (ii) enter into a master license agreement with any software or technology supplier and sublicense the software or technology to Franchisee, in which case Franchisor may charge Franchisee for all amounts that Franchisor must pay to the licensor based on Franchisee's use of the software or technology; and (iii) create proprietary software or technology that must be used by HCK Hot Chicken franchisees, in which case Franchisor may require that Franchisee enter into a license agreement with Franchisor and pay Franchisor reasonable initial and ongoing licensing, support and maintenance fees; and (iv) modify or increase the monthly Technology Fee to account for changes, additions and modifications to required hardware and software and for licensing and maintenance costs change the software and technology that must be used by franchisees at any time.
There is no limitation on the frequency and cost of Franchisee's obligation to maintain, update or upgrade its hardware or software.
The Technology Fee is uniform and non-refundable under any circumstances, and may be adjusted by Franchisor upon 30 days' written notice to you.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Technology Fee is designed to cover the costs Hck Hot Chicken incurs to provide technology services to its franchisees. This fee is intended to be a "pass through" of costs, meaning Hck Hot Chicken does not mark up the prices. The fee consists of two types of expenses: those charged to Hck Hot Chicken by vendors, suppliers, and affiliates, and those Hck Hot Chicken reasonably incurs in creating, developing, implementing, administering, and maintaining technology services for franchisees generally or specifically at a franchisee's request.
This means that as a franchisee, you will be responsible for covering the expenses associated with the technology required to operate your Hck Hot Chicken franchise. These costs can fluctuate as Hck Hot Chicken reserves the right to change or add approved suppliers, enter into master license agreements and sublicense software to franchisees, create proprietary software, and modify the monthly Technology Fee to account for changes, additions, and modifications to required hardware and software. There is no limit to how frequently Hck Hot Chicken can require you to maintain, update, or upgrade your hardware or software.
The Technology Fee is uniform and non-refundable, and Hck Hot Chicken may adjust it with a 30-day written notice. In addition to the Technology Fee, franchisees may also be required to pay third-party providers, suppliers, or vendors related to the computer and technology system operated in the franchised restaurant. This means that the overall technology expenses for a Hck Hot Chicken franchise can vary and may include costs paid directly to Hck Hot Chicken as well as to external service providers.
Prospective franchisees should be aware that these technology-related costs are essential for maintaining the operational standards and technological infrastructure of the Hck Hot Chicken franchise. It is important to factor in potential increases or modifications to these fees when assessing the overall investment and operational expenses of the franchise. Understanding the scope and potential variability of these technology costs is crucial for financial planning and ensuring the long-term viability of the franchise.