How does the Hck Hot Chicken Development Agreement define "Additional Development Obligation"?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3.2 If the additional development obligation proposed by the Additional Development Notice is acceptable to Franchisor, or if Franchisor and Area Developer reach agreement on an alternative additional development obligation (the "Additional Development Obligation") within said 60 day period, then Franchisor shall deliver to Area Developer a copy of Franchisor's then-current Franchise Disclosure Document, if required by Applicable Law, and two copies of the then-current area development agreement, which may vary substantially from this Development Agreement, setting forth the agreed upon Additional Development Obligation. Within 30 days after Franchisor's delivery of the said area development agreement, but no sooner than immediately after the expiration of any applicable waiting period(s) prescribed by Applicable Law, Area Developer shall execute the area development agreement and return them to Franchisor for the Restaurants required by the Additional Development Obligation. If Area Developer has
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the "Additional Development Obligation" refers to an alternative development obligation that Hck Hot Chicken and an area developer mutually agree upon. This agreement is reached if the franchisor finds the additional development obligation initially proposed by the area developer in the Additional Development Notice acceptable, or if both parties negotiate and come to an agreement within a 60-day period.
If an agreement is reached, Hck Hot Chicken will provide the area developer with a current Franchise Disclosure Document (if required by law) and two copies of the current area development agreement. This new agreement may differ significantly from the original Development Agreement and will detail the agreed-upon Additional Development Obligation.
The area developer then has 30 days (but not before any legally required waiting period expires) to execute and return the area development agreements to Hck Hot Chicken. Provided the area developer meets certain conditions, Hck Hot Chicken will then execute the copies and return one fully executed copy to the area developer, formalizing the Additional Development Obligation.
It is important to note that the area developer's right to pursue additional development is contingent upon fulfilling all obligations under the existing Development Agreement and any other agreements with Hck Hot Chicken. Additionally, the area developer must demonstrate the financial capacity to meet the Additional Development Obligations, using the same criteria Hck Hot Chicken applies to new area developer franchisees.