What discretion does Hck Hot Chicken have over the Intranet?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.14.1 Franchisor may establish and maintain an Intranet through which franchisees of Franchisor may communicate with each other, and through which Franchisor and Franchisee may communicate with each other and through which Franchisor may disseminate the HCK Hot Chicken Brand Standards Manual, updates thereto and other confidential information. Franchisor shall have discretion and control over all aspects of the Intranet, including the content and functionality thereof. Franchisor will have no obligation to maintain the Intranet indefinitely, and may dismantle it at any time without liability to Franchisee.
- 7.14.2 Franchisee shall have the mere privilege to use the Intranet, subject to Franchisee's strict compliance with the standards and specifications, protocols, and restrictions that Franchisor may establish from time to time. Such standards and specifications, protocols and restrictions may relate to, among other things, (a) the use of abusive, slanderous or otherwise offensive language in electronic communications, (b) communications between or among franchisees that endorse or encourage Default of any franchisee's franchise agreement, or other agreement with Franchisor or its Affiliates, (c) confidential treatment of materials that Franchisor transmits via the Intranet, (d) password protocols and other security precautions, including limitations on the number and types of employees that may be granted access to the Intranet, (e) grounds and procedures for Franchisor's suspending or revoking a franchisee's access to the Intranet, and (f) a privacy policy governing Franchisor's access to and use of electronic communications that franchisees post to the Intranet. Franchisee acknowledges that, as administrator of the Intranet, Franchisor can technically access and view any communication that any person posts on the Intranet. Franchisee further acknowledges that the Intranet facility and all communications that are posted to it will become Franchisor's property, free of any claims of privacy or privilege that Franchisee or any other person may assert.
- 7.14.3 Franchisee shall establish and continually maintain (during all times that the Intranet shall be established and until the termination of this Agreement) an electronic connection (the specifications of which
shall be specified in the HCK Hot Chicken Brand Standards Manual) with the Intranet that allows Franchisor to send messages to and receive messages from Franchisee, subject to the standards and specifications.
- 7.14.4 If Franchisee shall default under this Agreement or any other agreement with Franchisor or its Affiliate, Franchisor may, in addition to, and without limiting any other rights and remedies available to Franchisor, disable or terminate Franchisee's access to the Intranet without Franchisor having any liability to Franchisee, and in which case Franchisor shall only be required to provide Franchisee a paper copy of the HCK Hot Chicken Brand Standards Manual and any updates thereto, if none have been previously provided to Franchisee, unless not otherwise entitled to the HCK Hot Chicken Brand Standards Manual.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken has significant control over the Intranet. Hck Hot Chicken may establish and maintain an Intranet for communication between franchisees and the franchisor, as well as to distribute the HCK Hot Chicken Brand Standards Manual, updates, and other confidential information. Hck Hot Chicken has discretion and control over all aspects of the Intranet, including its content and functionality.
However, Hck Hot Chicken is not obligated to maintain the Intranet indefinitely and can dismantle it at any time without liability to the franchisee. The franchisee only has the privilege to use the Intranet, and this use is subject to strict compliance with standards, specifications, protocols, and restrictions set by Hck Hot Chicken. These standards may relate to language, communications between franchisees, confidential treatment of materials, security precautions, and grounds for suspending or revoking a franchisee's access.
As administrator, Hck Hot Chicken can access and view any communication posted on the Intranet, and all communications posted to it become Hck Hot Chicken's property, free of any claims of privacy. Franchisees must maintain an electronic connection with the Intranet as specified in the HCK Hot Chicken Brand Standards Manual. If a franchisee defaults on any agreement with Hck Hot Chicken, Hck Hot Chicken can disable or terminate the franchisee's access to the Intranet without liability, and may only be required to provide a paper copy of the HCK Hot Chicken Brand Standards Manual.