Is the Development Fee for an Hck Hot Chicken Area Development Agreement refundable?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT]
Notes:
- Development Fee. Upon signing the Area Development Agreement and Franchise Agreement for your first Restaurant, you must pay us a Development Fee. All fees and payments are non-refundable, unless otherwise stated or permitted by the payee. The Development Fee varies based on the number of Restaurants you commit to develop. The low estimate is based on a commitment to develop three (3) Restaurants and the
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high estimate is based on a commitment to develop ten (10) Restaurants. We may permit you to enter into a Development Agreement to develop more than ten (10) Restaurants if we determine that you are operationally and financially capable of doing so. The Development Fee is due upon execution of your Development Agreement and is not refundable. The Development Fee will be credited towards the initial Franchise Fee for each Restaurant developed under the Development Agreement and you must pay us the balance of the Initial Franchise Fee upon signing a Franchise Agreement for each additional Restaurant in your Development Schedule. See Item 5.
| Type of Expenditure | Amount Low High | Method of Payment | When Due | To Whom Payment Is Made | |
|---|---|---|---|---|---|
| Estimate (3 Restaurants) | Estimate (10 Restaurants) | ||||
| Development Fee(1) | $99,000 | $250,000 | Lump Sum | Upon signing Development Agreement | Us |
[Item 7: ESTIMATED INITIAL INVESTMENT]
Notes:
Generally. All fees paid to us, or our affiliates, are uniform and not refundable under any circumstances once paid. Fees paid to vendors or other suppliers may be refundable depending on the vendors and suppliers.
- Initial Franchise Fee. The Initial Franchise Fee for one HCK Hot Chicken Franchise is $40,000. The Initial Franchise Fee is paid upon execution of the Franchise Agreement and is non-refundable. See Item 5 and Table B to this Item 7 for additional information regarding the Initial Franchise Fee when you sign an Area Development Agreement to develop multiple HCK Hot Chicken Restaurants.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–23)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Development Fee paid upon signing an Area Development Agreement is generally not refundable. The FDD states that all fees and payments are non-refundable unless explicitly stated otherwise or permitted by the payee. The Development Fee varies between $99,000 and $250,000, depending on whether the agreement is to develop three or ten restaurants, respectively.
The Development Fee is due upon execution of the Development Agreement. However, this fee is credited towards the initial Franchise Fee for each restaurant developed under the Area Development Agreement. The franchisee must pay the balance of the Initial Franchise Fee upon signing a Franchise Agreement for each additional restaurant in their Development Schedule.
In general, all fees paid to Hck Hot Chicken are uniform and non-refundable under any circumstances once paid. Fees paid to vendors or other suppliers may be refundable, depending on the vendors and suppliers. The Initial Franchise Fee for one Hck Hot Chicken franchise is $40,000 and is non-refundable.