Where in the Hck Hot Chicken Franchise Agreement can I find the provisions related to terminations?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Item 17 provides a table summarizing key provisions of the franchise agreement, including those related to termination. While the provided excerpts do not explicitly list a "Termination" provision with a corresponding section in the Franchise Agreement, Item 17 generally covers "RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION," suggesting that termination-related clauses are addressed within the broader context of the franchise relationship.
Given that the table in Item 17 outlines various provisions and their corresponding sections, a prospective Hck Hot Chicken franchisee should carefully review the actual Franchise Agreement, particularly Section 8.2, which discusses non-competition covenants after termination or expiration. This section indicates that after the franchise is terminated or expires, the franchisee is restricted from involvement in any Competitive Activities, as defined in the Development Agreement, for two years within the Development Area, unless Hck Hot Chicken provides express written consent.
To fully understand the termination terms, a potential franchisee should consult the Franchise Agreement itself and seek clarification from Hck Hot Chicken regarding the specific sections detailing the conditions, procedures, and consequences of termination, both by the franchisee and by Hck Hot Chicken. Understanding these provisions is crucial for assessing the risks and obligations associated with the Hck Hot Chicken franchise.