When is the Customer Issue Resolution fee payable for a Hck Hot Chicken franchise?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | Due Date | Remarks | |
|---|---|---|---|
| (Note 1) | |||
| Food Safety or Other Inspection Field Revisit | Cost of inspection plus $850 for the first offense and $2,500 for any additional offense | Before re- inspection | If you fail a food safety audit or other inspection, we will require you to undergo an additional audit or inspection. You will pay us directly upon invoicing. This fee is uniformly imposed and is not refundable under any circumstances. |
| Supplier and | Costs of inspection | As incurred | We may charge a fee if we inspect a new |
| Product Evaluation | product, service or proposed supplier | ||
| Fee | nominated by you. | ||
| Unauthorized Advertising Fee | $500 per occurrence | Upon demand | This fee is payable to the Brand Fund, if you use unauthorized advertising in violation of the terms of the Franchise Agreement. |
| Customer Issue Resolution | Reasonable costs we incur for responding to a customer complaint. | On invoice | Payable if a customer of your HCK Hot Chicken Restaurant contacts us with a complaint and we provide a gift card, refund, or other value to the customer as part of our addressing the issue. |
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 Customer Issue Resolution fee is payable 'on invoice'. This fee is incurred when a customer of a franchisee's Hck Hot Chicken Restaurant contacts the franchisor with a complaint, and Hck Hot Chicken provides a gift card, refund, or other value to the customer to resolve the issue. The fee covers the reasonable costs Hck Hot Chicken incurs in addressing the customer complaint.
In practice, this means that if a customer has a problem at a franchisee's location and escalates it to the franchisor, Hck Hot Chicken may step in to resolve it. If they provide compensation to the customer, the franchisee will be billed for the costs associated with that resolution. This could include the cost of a gift card, a refund, or any other form of compensation offered to the customer.
It is important for prospective Hck Hot Chicken franchisees to understand that they are responsible for addressing customer complaints effectively at their restaurant level. Failure to do so could result in the franchisor intervening and passing the costs of resolution back to the franchisee. This fee is designed to cover situations where the franchisor has to take action to protect the brand's reputation due to unresolved issues at a specific location. Franchisees should budget for the possibility of such fees and prioritize excellent customer service to minimize the likelihood of incurring them.