When is the Development Fee due to Hck Hot Chicken when signing an Area Development Agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 is due upon execution of the Area Development Agreement. This fee is not refundable. The amount of the Development Fee varies depending on the number of restaurants the franchisee commits to develop.
Specifically, the low estimate for the Development Fee is $99,000, which is based on a commitment to develop three restaurants. The high estimate is $250,000, based on a commitment to develop ten restaurants. Hck Hot Chicken may allow a franchisee to develop more than ten restaurants if they are deemed operationally and financially capable.
The Development Fee will be credited towards the initial Franchise Fee for each restaurant developed under the 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. For each restaurant developed under the Area Development Agreement, the franchisee will also incur the initial investment expenses for a single restaurant, as detailed in Item 7 of the FDD, but this estimate does not include the Initial Franchise Fee or Development Fee for the first restaurant.