factual

Can an Hck Hot Chicken franchisee assign their lease without the Landlord's consent?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Assignor agrees it will not suffer or permit any surrender, termination, amendment, or modification of the Lease without the prior written consent of Assignee. Through the term of the Franchise Agreement and any renewals thereto, Assignor agrees that it shall elect and exercise all options to extend the term of or renew the Lease not less than 30 days before the last day that said option must be exercised, unless Assignee otherwise agrees in writing. Upon failure of Assignee to otherwise agree in writing, and upon failure of Assignor to so elect to extend or renew the Lease as stated herein, Assignor hereby irrevocably appoints Assignee as its true and lawful attorney-in-fact, which appointment is coupled with an interest to exercise the extension or renewal options in the name, place, and stead of Assignor for the sole purpose of effecting the extension or renewal.

Source: Item 22 — CONTRACTS (FDD pages 54–55)

What This Means (2025 FDD)

According to the 2025 Hck Hot Chicken Franchise Disclosure Document, a franchisee cannot surrender, terminate, amend, or modify their lease without the prior written consent of the Assignee. The Assignee in this case refers to Hck Hot Chicken.

Furthermore, the franchisee (Assignor) must elect and exercise all options to extend or renew the lease at least 30 days before the option expires, unless Hck Hot Chicken (Assignee) agrees otherwise in writing. If the franchisee fails to renew or extend the lease and Hck Hot Chicken does not provide written consent to this failure, Hck Hot Chicken is irrevocably appointed as the attorney-in-fact for the franchisee to exercise the extension or renewal options.

This arrangement ensures that Hck Hot Chicken maintains control over the lease and location of its franchises. This protects the brand's interests by preventing franchisees from making unilateral decisions about their location that could negatively impact the business. The franchisee gives Hck Hot Chicken the power to act on their behalf to renew the lease, ensuring the restaurant can continue operating at its current location.

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.