What is the effect of the Non-Traditional Venue Addendum on the definition of 'Traditional 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 'Traditional Restaurant' for franchisees operating in non-traditional locations. Specifically, the addendum replaces references to 'Restaurant' with 'Non-Traditional Restaurant' in most sections of the Franchise Agreement, including key definitions. This indicates that the standard definition of 'Traditional Restaurant' does not fully apply to non-traditional venues.
However, there are exceptions. 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, and 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 are not altered by the addendum. This means that these sections still apply to the franchisee, even if they are operating a Non-Traditional Restaurant.
This modification acknowledges that non-traditional Hck Hot Chicken restaurants may have different products, services, standards, and specifications compared to traditional restaurants. The franchisor reserves the right to develop and implement alternative standards and specifications tailored to these non-traditional venues. For a franchisee, this means the operating procedures, menu, and overall appearance of their Hck Hot Chicken location could differ significantly from a standard franchise, and they must be prepared to adapt to these differences and any future modifications made by Hck Hot Chicken.