factual

Where in the Hck Hot Chicken franchise agreement can I find the definition of 'Territory'?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

If an area is selected and described in Attachment A, then during the Term, neither Franchisor nor any Affiliate of Franchisor shall open or operate any Traditional Restaurant, nor license others to do so, within the geographic area described on Attachment A (the "Territory").

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)

What This Means (2025 FDD)

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the definition of "Territory" can be found in Section 2.3.1 of the franchise agreement if territorial rights are granted. Specifically, if an area is selected and described in Attachment A of the franchise agreement, then the Territory is defined as the geographic area described in Attachment A. During the term of the agreement, Hck Hot Chicken and its affiliates will not open or operate a Traditional Restaurant, nor license others to do so, within the defined Territory.

However, if "No Territorial Rights" is selected in Attachment A, the franchisee's rights are limited to the specific location of the Franchised Restaurant. In this case, the franchisee acknowledges that the franchise is nonexclusive and they have no territorial protection under the agreement. This means Hck Hot Chicken could open other locations nearby.

It's important to note that even with a defined Territory, Hck Hot Chicken retains significant rights. According to Section 2.3.2, Hck Hot Chicken reserves the right to operate or license others to operate Hck Hot Chicken Restaurants outside the Territory, Non-Traditional Restaurants (of any type) within or outside the Territory, and restaurants or other businesses operating under different names within or outside the Territory. The franchisee is only given a right of first refusal for any Non-Traditional Restaurant in a shopping center which is over 500,000 square feet in size located within Franchisee's Territory, and they only have seven days to respond.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.