What is the effect of the Non-Traditional Venue Addendum on the definition of 'System' 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 the 2025 Hck Hot Chicken Franchise Disclosure Document, the Non-Traditional Venue Addendum modifies the definition of "System" as it applies to franchisees operating in non-traditional locations. Specifically, the addendum stipulates that the definition of "System" in Appendix 1 of the Franchise Agreement is affected by the terms of the addendum. This means that the standard Hck Hot Chicken system, which includes know-how, proprietary programs and products, the manual, and the operating system, may be altered for non-traditional venues.
This modification acknowledges that Hck Hot Chicken restaurants in non-traditional venues may require different standards and specifications compared to traditional restaurants. These differences can extend to the products and services offered, as well as the standards and specifications set by Hck Hot Chicken. The franchisor retains the right to develop and implement alternative standards and specifications tailored to these non-traditional locations.
For a prospective Hck Hot Chicken franchisee, this means that the operating procedures, menu, and overall restaurant setup could vary significantly if they choose a non-traditional venue. It is important for franchisees to understand that the Brand Standards Manual may not fully apply to their location, and Hck Hot Chicken may issue an abbreviated manual specifically for non-traditional restaurants. Franchisees should clarify with Hck Hot Chicken what specific aspects of the "System" will be different for their non-traditional venue and how these differences might impact their operations and profitability.
Furthermore, franchisees need to be aware that Hck Hot Chicken retains the discretion to modify the standards and procedures for non-traditional restaurants as needed. This flexibility allows Hck Hot Chicken to adapt to the unique challenges and opportunities presented by these venues, but it also means that franchisees must be prepared to adjust their operations accordingly. The addendum also emphasizes that in case of conflict between the addendum and the Hck Hot Chicken Standard Guidelines, the provisions of the addendum will take precedence.