What is the effect of the Non-Traditional Venue Addendum on the definition of 'Restaurant' for Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for Sections 2.3, 8.3.1, 8.3.3, 9.3.2, 9.4.1, 11.8, 12.1.2, 12.2.1, 13.2.3(f) and 13.2.3(i) of the Franchise Agreement, the final reference in Section 9.7.2, as used in the definitions of "Competitive Activities," "Crisis Management Event," "Restaurant," "System" and "Traditional Restaurant" in Appendix 1 to the Franchise Agreement, and except as otherwise provided in this Addendum, all references in the Agreement to the defined term "Restaurant" are deleted and the reference "Non-Traditional Restaurant" is inserted in their place.
Franchisor and Franchisee acknowledge and agree that the products and services offered for sale from the Non-Traditional Restaurant, and the standards and specifications of Franchisor and its affiliates, may differ from that of a traditional HCK Hot Chicken Restaurant and will be subject to alternative standards and specifications developed and made available by Franchisor and its affiliates.
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Non-Traditional Venue Addendum significantly alters the definition of "Restaurant" within the Franchise Agreement for franchisees operating in non-traditional locations. Specifically, the addendum replaces most references to "Restaurant" with "Non-Traditional Restaurant," acknowledging that these venues may have different standards and specifications compared to traditional Hck Hot Chicken restaurants. This change affects various sections of the Franchise Agreement, tailoring the terms to better suit the unique operational aspects of non-traditional venues.
However, certain sections of the Franchise Agreement are excluded from this substitution, meaning the original definition of "Restaurant" still applies in those specific contexts. These sections include 2.3, 8.3.1, 8.3.3, 9.3.2, 9.4.1, 11.8, 12.1.2, 12.2.1, 13.2.3(f) and 13.2.3(i). Additionally, the final reference in Section 9.7.2, as used in the definitions of "Competitive Activities," "Crisis Management Event," "Restaurant," "System" and "Traditional Restaurant" in Appendix 1 to the Franchise Agreement, remains unchanged. This ensures that certain fundamental aspects of the franchise relationship, such as competitive restrictions and crisis management protocols, are uniformly applied regardless of the restaurant's location.
For a prospective Hck Hot Chicken franchisee, this means that the standard rules and expectations for a traditional restaurant may not fully apply to a non-traditional location. The franchisee needs to pay close attention to which sections of the agreement are modified by the addendum and understand how the term "Non-Traditional Restaurant" is defined and applied. It also highlights the importance of understanding the alternative standards and specifications that Hck Hot Chicken will develop for these non-traditional venues, as these standards will govern the operation of the franchise. Franchisees should seek clarification from Hck Hot Chicken regarding any differences in operational requirements, menu offerings, or facility specifications between traditional and non-traditional locations to ensure they are prepared for the specific demands of their chosen venue.