How does Hck Hot Chicken define 'cause' for termination of the Franchise Agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ction or guilty plea, whichever first occurs, to sell its interest in Franchisee to Franchisee's other Owners; or (ix) Franchisee's and any Restricted Person's failure to comply with Section 12 or Section 20 of this Agreement.
- 14.3 Option to Terminate Without Opportunity to Cure. Franchisee shall be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon receipt of notice by Franchisor upon the occurrence of any of the following events:
- 14.3.1 Abandonment. If Franchisee shall abandon the Franchised Restaurant. For purposes of this Agreement, "abandon" shall refer to (i) Franchisee's failure, at any time during the term of this Agreement, to keep the Premises or Franchised Restaurant open and operating for business for a period of three consecutive days, except as provided in the HCK Hot Chicken Brand Standards Manual, (ii) Franchisee's failure to keep the Premises or Franchised Restaurant open and operating for any period after which it is not unreasonable under the facts and circumstances for Franchisor to conclude that Franchisee does not intend to continue to operate the Franchised Restaurant, unless such failure to operate is due to Force Majeure (subject to Franchisee's continuing compliance with this Agreement), (iii) failure to actively and continuously maintain and answer the telephone listed by Franchisee for the Franchised Restaurant solely with the "HCK Hot Chicken" name (as the same may be modified in accordance with this Agreement); (iv) the withdrawal of permission from the applicable lessor that results in Franchisee's inability to continue operation of the Franchised Restaurant; or (v) closing of the Franchised Restaurant required by Applicable Law if such closing was not the result of a violation of this Agreement by Franchisor.
- 14.3.2 Assignment, Death, or Incapacity. If Franchisee shall purport to make any Assignment without the prior written consent of Franchisor;
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the company outlines specific events that constitute a default, allowing the franchisor to terminate the agreement without providing an opportunity for the franchisee to remedy the situation. These events include abandonment of the franchised restaurant, which is defined as failing to keep the restaurant open for three consecutive days or any period that leads the franchisor to believe the franchisee doesn't intend to continue operations. Abandonment also includes failure to maintain the telephone listed for the restaurant under the "HCK Hot Chicken" name, loss of permission from the lessor resulting in the inability to operate, or closure required by law if the closure resulted from a violation of the agreement by the franchisee.
Additionally, Hck Hot Chicken may terminate the agreement without opportunity to cure if the franchisee makes any material misrepresentations relating to the acquisition of the Franchise Agreement. The agreement can also be terminated if the franchisee's operation of the restaurant poses an imminent danger to public health, such as selling spoiled food or failing to comply with health codes, or selling expired or unauthorized products after receiving a notice of default. Failure to complete the initial training program by the franchisee, the initial Operating Principal, or the initial Restaurant Manager is also grounds for immediate termination.
These termination clauses in the Hck Hot Chicken franchise agreement are designed to protect the brand's reputation, ensure consistent quality and adherence to standards, and maintain legal and ethical compliance. Prospective franchisees should carefully consider these terms, as they define the circumstances under which their franchise can be terminated without any chance to correct the issue. Understanding these conditions is crucial for franchisees to avoid potential pitfalls and maintain a successful business relationship with Hck Hot Chicken.