When does a Hck Hot Chicken franchisee need to employ a Director of Operations?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2.5 Commencing on the date which Franchisee, directly or indirectly through one or more Affiliate(s), opens its 2nd Restaurant, and at all times throughout the Term and the term of the franchise agreement for each additional Restaurant, Franchisee or one of its Affiliates shall employ and retain, an individual (the "Director of Operations") who shall be vested with the authority and responsibility for the day-to-day operations of all Restaurants owned or operated, directly or indirectly, by Franchisee and its Affiliates. The Director of Operations shall, during the entire period he/she serves as such, unless otherwise agreed in writing by Franchisor devote one hundred percent (100%) of his/her time and best efforts solely to operation of all Restaurants owned or operated, directly or indirectly, by Franchisee and its Affiliates and to no other business activities. The Director of Operations may, with the prior written consent of Franchisor, be the same individual as the Operating Principal. The Director of Operations shall be responsible for all actions necessary to ensure that the Restaurant is owned or operated, directly or indirectly, by Franchisee in compliance with this Franchise Agreement and the HCK Hot Chicken Brand Standards Manual. If, during the Term, the Director of Operations is not able to continue to serve in such capacity or no longer qualifies to act as such in
accordance with this Section, Franchisee or its applicable Affiliate shall promptly notify Franchisor and designate a replacement within 30 days after the Director of Operations ceases to serve.
Franchisee shall notify Franchisor in writing at least ten days prior to employing the Director of Operations, if any, setting forth in reasonable detail all information reasonably requested by Franchisor. The Director of Operations must complete Franchisor's training requirements in accordance with the terms set forth in this Agreement and the HCK Hot Chicken Brand Standards Manual prior to serving in these roles.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, a franchisee must employ a Director of Operations once they open their second restaurant, either directly or indirectly through an affiliate. This requirement remains in effect for the entire term of the franchise agreement for each additional restaurant the franchisee opens.
The Director of Operations is responsible for the day-to-day operations of all Hck Hot Chicken restaurants owned or operated by the franchisee and their affiliates. This individual must dedicate 100% of their time and effort to these operations, unless Hck Hot Chicken agrees otherwise in writing. The Director of Operations can be the same person as the Operating Principal, with Hck Hot Chicken's prior written consent.
The Director of Operations ensures that the restaurants comply with the franchise agreement and Hck Hot Chicken's brand standards. If the Director of Operations can no longer fulfill their duties, the franchisee must notify Hck Hot Chicken and designate a replacement within 30 days. The franchisee must also inform Hck Hot Chicken in writing at least ten days before employing a Director of Operations, providing any requested information. The Director of Operations must complete Hck Hot Chicken's training requirements before starting in the role.