What is a Hck Hot Chicken franchisee prohibited from doing after termination regarding representing themselves as a franchisee?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.9 Assumed Name Registration. If Franchisee is required to do so by Applicable Law, Franchisee shall promptly upon the execution of this Agreement file with applicable Governmental Authorities, a notice of its intent to conduct its business under the name "HCK Hot Chicken" with only such additional prefix or suffix as may be required by Franchisor from time to time. Promptly upon the expiration or termination of this Agreement for any reason whatsoever, Franchisee shall promptly execute and file such documents as may be necessary to revoke or terminate such assumed name registration, and if Franchisee shall fail to promptly execute and file such documents as may be necessary to effectively revoke and terminate such assumed name registration, Franchisee hereby irrevocably appoints Franchisor as its attorney-in-fact to do so for and on behalf of Franchisee.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
Based on the 2025 Hck Hot Chicken Franchise Disclosure Document, franchisees are required to revoke or terminate their assumed name registration upon the expiration or termination of their franchise agreement for any reason. If a franchisee fails to do so promptly, Hck Hot Chicken is irrevocably appointed as their attorney-in-fact to execute and file the necessary documents on behalf of the franchisee. This prevents the former franchisee from continuing to operate or represent themselves as an Hck Hot Chicken franchisee after the agreement ends.
This requirement ensures that the public is not misled into believing that a terminated franchisee is still part of the Hck Hot Chicken system. It protects the brand's reputation and prevents potential damage that could arise from a former franchisee operating under the Hck Hot Chicken name without adhering to the current standards and practices. By retaining the power of attorney, Hck Hot Chicken can swiftly address any non-compliance, maintaining brand consistency and customer trust.
For a prospective Hck Hot Chicken franchisee, this clause underscores the importance of understanding and adhering to the terms of the franchise agreement, particularly regarding post-termination obligations. It highlights the need to promptly handle all legal and administrative tasks related to the termination, including the assumed name registration. Failing to do so could result in Hck Hot Chicken taking control of these actions, potentially incurring additional costs or complications for the former franchisee.