Does the Hck Hot Chicken franchisee acknowledge the franchisor's exclusive ownership of the Marks?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.3 No Ownership of Marks.
Franchisee acknowledges and agrees that rights in and to Franchisor's Marks and the use thereof shall be and remain the property of Franchisor.
- 15.4 Government Filings.
In the event Franchisee has registered any of Franchisor's Marks or the name "HCK Hot Chicken" as part of Franchisee's assumed, fictitious or corporate name, Franchisee shall promptly amend such registration to delete Franchisor's Marks and any confusingly similar marks or names therefrom.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken FDD, franchisees acknowledge and agree that the rights to Hck Hot Chicken's trademarks (the Marks) remain the exclusive property of the franchisor. Franchisees also agree that they currently have no claim and will not make any future claim to the goodwill, reputation, or ownership of the Marks. This acknowledgment extends to any benefits the franchisee might receive from using the licensed Marks.
This means that while franchisees are granted the right to use the Hck Hot Chicken Marks to operate their business, they never gain any ownership rights to the Marks themselves. The franchisor retains full control and ownership. This is a standard practice in franchising, as it protects the brand's identity and reputation, which is crucial for maintaining consistency across all franchise locations.
Furthermore, if a franchisee registers any of Hck Hot Chicken's Marks or the name "HCK Hot Chicken" as part of their business name, they must promptly change the registration to remove the Marks. If they fail to do so, the franchisee irrevocably appoints Hck Hot Chicken as their attorney-in-fact to make those changes on their behalf. This provision ensures that the franchisor can quickly correct any unauthorized registration of their trademarks by a franchisee.