What is the deadline for a Hck Hot Chicken franchisee to be denied necessary governmental permits for a Non-Traditional Restaurant in order to be eligible for a refund of the Initial Franchise Fee?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign a Non-Traditional Location Addendum, either you or we may terminate the Franchise Agreement if, within 90 days of the effective date of the Franchise Agreement, you are denied the necessary governmental
permits for the location of your Non-Traditional Restaurant and you submit to us documentation evidencing the denial. Upon termination, we will refund the Initial Franchise Fee, less any direct out-of-pocket expenses we incurred, including fees paid to brokers or our internal sales staff related to your purchase of the franchise rights. Any refund will be subject to your signing of a general release in the form we provide. A sample "General Release Agreement" is attached to this Disclosure Document in Exhibit I. In our prior fiscal year, we did not issue any refunds of Initial Franchise Fees.
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, if a franchisee signs a Non-Traditional Location Addendum, either the franchisee or Hck Hot Chicken can terminate the Franchise Agreement if the franchisee is denied the necessary governmental permits for the Non-Traditional Restaurant location. This denial must occur within 90 days of the effective date of the Franchise Agreement.
To receive a refund of the Initial Franchise Fee, the franchisee must submit documentation evidencing the denial to Hck Hot Chicken. Upon termination and submission of documentation, Hck Hot Chicken will refund the Initial Franchise Fee, less any direct out-of-pocket expenses they incurred, including fees paid to brokers or their internal sales staff related to the purchase of the franchise rights. The refund is also contingent upon the franchisee signing a general release in the form provided by Hck Hot Chicken.
It is important to note that in the prior fiscal year, Hck Hot Chicken did not issue any refunds of Initial Franchise Fees. This does not guarantee future outcomes, but it provides some insight into the company's practices. Prospective franchisees should carefully consider the implications of these terms and the potential for expenses to be deducted from any refund before signing a Non-Traditional Location Addendum.