Does the Hck Hot Chicken Franchise Agreement contain provisions related to terminations?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION]
| Provision | Development Agreement | Summary from the sale of fried chicken, or (iii) any business engaged in the |
|---|---|---|
| preparation, production or sale, at wholesale, of any fried chicken food product. Notwithstanding the foregoing, Competitive Activities shall not include the direct or indirect ownership solely as an investment, of securities of any entity which are traded on any national securities exchange if the owner thereof (i) is not a controlling person of, or a member of a group which controls, such entity and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such entity. | ||
| r. Non-competition covenants after the franchise is terminated or expires | Section 8.2 | Except with our express written consent, no involvement in any Competitive Activities, as defined above, for 2years within the Development Area. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–51)
What This Means (2025 FDD)
Yes, according to Hck Hot Chicken's 2025 Franchise Disclosure Document, Item 17 addresses 'Renewal, Terminations, Transfer, and Dispute Resolution,' indicating that the Franchise Agreement includes provisions related to terminations.
Specifically, the table in Item 17 summarizes key provisions of the franchise and related agreements, advising prospective franchisees to read these provisions in the agreements attached to the Disclosure Document. While the summary table does not explicitly detail the conditions or procedures for termination, the presence of 'Terminations' in the title of Item 17 and the table's description suggests that the Franchise Agreement outlines the circumstances under which the franchise can be terminated by either the franchisor or the franchisee.
To fully understand the termination rights, causes, and procedures, a prospective Hck Hot Chicken franchisee should carefully review Section 8.2 of the Franchise Agreement, which addresses non-competition covenants after the franchise is terminated or expires. Additionally, the franchisee should consult the actual Franchise Agreement attached to the FDD for a comprehensive understanding of all termination-related clauses, including any conditions, notice requirements, or financial implications associated with termination.