What is the cure period for a non-monetary default under the Hck Hot Chicken Development Agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.1.1 Subject to Applicable Law to the contrary, this Development Agreement may be terminated by Franchisor in the event of any Default by Area Developer of this Development Agreement, unless such Default is cured by Area Developer within five days following written notice of the Default (in the case of a failure to pay money), or ten days following written notice of the Default (in the case of any other Default); provided that in the case of a Default by Area Developer (or its Affiliate) under any Franchise Agreement or other written agreement, the notice and cure provisions of the Franchise Agreement or other agreement shall control, and provided, further, however, that any Default described in Sections 9.1.2(a), (b) or (e) below shall be deemed incurable.
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, if an Area Developer fails to meet obligations other than monetary ones under the Development Agreement, they have ten days following written notice to correct the default. However, this cure period does not apply if the default occurs under any Franchise Agreement or other written agreement, in which case the notice and cure provisions of that specific agreement will take precedence. Certain defaults, as outlined in Sections 9.1.2(a), (b), or (e) of the Development Agreement, are deemed incurable, meaning they cannot be rectified.
This means that a prospective Hck Hot Chicken area developer needs to understand the specific terms of both the Development Agreement and any related Franchise Agreements, as the cure periods can vary. It is important to note that some defaults cannot be cured at all, which could lead to immediate termination of the agreement.
For a prospective franchisee, this highlights the importance of carefully reviewing all agreements and understanding the specific actions that constitute a default and the corresponding cure periods. It would be prudent to seek legal counsel to fully understand the implications of these provisions and to assess the risks associated with non-compliance. Understanding these terms is crucial for maintaining a successful and compliant franchise operation with Hck Hot Chicken.