Can Hck Hot Chicken dissolve the Brand Fund, and if so, what are the conditions?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Although we do not intend to do so, we may dissolve the Brand Fund at any point. If we decide to dissolve the Brand Fund, we will either spend or distribute pro rata any remaining funds before dissolution.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING,COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–37)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken may dissolve the Brand Fund at any point. If Hck Hot Chicken decides to dissolve the Brand Fund, the company will either spend or distribute any remaining funds pro rata before dissolving the fund.
This means that Hck Hot Chicken has the right to discontinue the Brand Fund, which is used for advertising and marketing purposes. If the Brand Fund is dissolved, any money remaining in the fund will either be spent on advertising or marketing or distributed to the franchisees based on a proportional calculation.
It is important for a prospective franchisee to understand that Hck Hot Chicken has the power to dissolve the Brand Fund. While the remaining funds must be used or distributed, there is no guarantee that the advertising and marketing support franchisees receive from the Brand Fund will continue if it is dissolved. A prospective franchisee should inquire about the specific conditions under which Hck Hot Chicken might dissolve the Brand Fund and how this would impact franchisees' advertising and marketing obligations.