What is the default geographic scope of the 'Restricted Territory' for a Hck Hot Chicken franchise?

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the 'Restricted Territory' is defined as the geographic area within a 25-mile radius from the franchisee's Hck Hot Chicken business, including the approved location. It also includes a 25-mile radius from all other Hck Hot Chicken businesses that are operating or under construction at the beginning of the Restricted Period. This means that after a franchisee leaves the Hck Hot Chicken system, they are restricted from engaging in competitive activities within this defined area.

However, the document also states that if a court deems the 25-mile radius too broad to be enforceable, the 'Restricted Territory' will be reduced to a 12.5-mile radius from the former franchisee's Hck Hot Chicken business, including the premises. This conditional clause provides a safeguard in case the initial restriction is considered unreasonable under applicable laws.

This restriction is in place for a set 'Restricted Period' after the franchisee ceases to be a manager or officer. The Restricted Territory definition is crucial for franchisees to understand, as it directly impacts their ability to engage in similar business ventures after leaving the Hck Hot Chicken franchise system. Prospective franchisees should carefully consider the implications of this clause and consult with legal counsel to fully understand its enforceability and impact on their future business opportunities.