Who defines the area of each local and regional advertising cooperative for Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.6 Local Advertising Cooperative.
Franchisee may be required to participate in any local or regional advertising cooperative for HCK Hot Chicken Restaurants that are established.
The area of each local and regional advertising cooperative will be defined by Franchisor, based on Franchisor's assessment of the area.
Franchisees in each cooperative will contribute an amount to the cooperative of up to two percent (2%) of monthly Gross Sales for each Restaurant that the franchisee owns that exists within the cooperative's area.
Each Restaurant that Franchisor owns that exists within the cooperative's area will contribute to the cooperative on the same basis as franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the franchisor defines the area of each local and regional advertising cooperative. This determination is based on the franchisor's assessment of the area. Franchisees may be required to participate in these cooperatives.
Franchisees in each cooperative contribute up to 2% of monthly gross sales for each restaurant they own within the cooperative's area. Hck Hot Chicken restaurants owned by the franchisor within the cooperative area also contribute on the same basis as franchisees.
This means that Hck Hot Chicken franchisees will need to factor in this potential advertising expense and cede control of the cooperative's boundaries to the franchisor. Prospective franchisees should inquire about the typical size and scope of these advertising cooperatives during their due diligence.