Is a credit card authorization required for Hck Hot Chicken franchisees?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently require you to pay fees and other amounts due to us or our affiliates via EFT or other similar means. You are required to complete the EFT authorization (in the form attached to this Franchise Disclosure Document in Exhibit I). You are also required to complete the credit card authorization (in the form attached to this Franchise Disclosure Document in Exhibit I), which allows us to charge your credit card for any past due amounts in the event an EFT payment is unsuccessful.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees are required to complete a credit card authorization form. This authorization allows Hck Hot Chicken to charge the franchisee's credit card for any past due amounts if an Electronic Funds Transfer (EFT) payment is unsuccessful. The EFT authorization form is included as an exhibit in the FDD.
This requirement ensures that Hck Hot Chicken has a mechanism to collect overdue payments efficiently. By having a credit card on file, Hck Hot Chicken can promptly address any payment failures, minimizing potential disruptions in revenue collection.
For a prospective franchisee, this means they must provide credit card information as part of the franchise agreement. It is important to understand the circumstances under which Hck Hot Chicken can charge the credit card and to ensure that sufficient funds are available to cover any potential EFT payment failures, to avoid additional fees or penalties.