factual

Who does the Hck Hot Chicken franchisee pay for the EMV terminal software, and how often?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee is required to pay Franchisor's vendors their then-current monthly fee for obtaining software for each EMV terminal.

Franchisor may require that Franchisee install additional payment terminals or automated teller machines for use with such credit cards.

Franchisee shall pay the costs of any terminals, software, hardware, or other components necessary to comply with these requirements, and Franchisor reserves the right to require that Franchisee pay any such costs to Franchisor.

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

What This Means (2025 FDD)

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees are required to have at least two EMV terminals in their restaurant. The franchisee is responsible for paying the Hck Hot Chicken franchisor's vendors their then-current monthly fee for the software for each EMV terminal. The franchisee is also responsible for the costs of any terminals, software, hardware, or other components necessary to comply with EMV standards or other credit card usage standards. Hck Hot Chicken reserves the right to require that the franchisee pay these costs directly to the franchisor.

This means that as a prospective Hck Hot Chicken franchisee, you will incur ongoing monthly expenses for the EMV terminal software. These fees are paid to the franchisor's chosen vendors, but the franchisor may collect the payments directly. The exact amount of these fees is not specified in this document, but it is subject to change. Additionally, Hck Hot Chicken can mandate the installation of additional payment terminals or ATMs, further increasing your costs.

It is important to note that the Technology Fee, which franchisees pay to Hck Hot Chicken on the first Wednesday of each month, is intended to cover the costs incurred by the franchisor in providing technology services. However, the EMV terminal software fees appear to be a separate expense paid directly to the franchisor's vendors. Franchisees should clarify with Hck Hot Chicken what specific services and software are covered by the Technology Fee versus what is paid separately. Franchisees should also inquire about the typical range of monthly costs for EMV terminal software to accurately forecast expenses.

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.