Does an Hck Hot Chicken franchisee receive an exclusive territory?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in and during the term of the Franchise Agreement, for so long as you comply with the terms and conditions of the Franchise Agreement, we will not establish and operate, nor license any party other than you to establish and operate, any Restaurant under the System and the Marks within your Territory. Your territory is not dependent upon meeting a certain sales quota or the opening of additional Restaurants. The boundaries of your Territory will not change, even if the population within your Territory increases or decreases, during the initial term of your Franchise Agreement.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We reserve all rights not expressly granted in the Franchise Agreement. For example, we may own, operate and authorize others to own or operate: (a) HCK Hot Chicken Restaurants at any location outside of your Territory; (b) HCK Hot Chicken Restaurants at Non-Traditional Venues at any location (without regard to the proximity to your Restaurant); and (c) restaurants or other businesses operating under names other than "HCK Hot Chicken," at any location, and of any type whatsoever, within or outside the Territory, without regard to the proximity to your Restaurant and which may sell goods and services similar to those under the "HCK Hot Chicken" brand. In addition, we reserve the right to acquire, or be acquired by any competing system, including a system that has one or more units in your Territory.
We may sell products under the "HCK Hot Chicken" trademark or any other trademarks, regardless of proximity to your Restaurant, through any method of distribution, including sales through such channels of distribution as grocery stores, supermarkets, convenience stores, the Internet, delivery, catering, catalog sales, telemarketing, or other direct marketing sales (together, "Alternative Distribution Channels") without compensation to you. Although we reserve the rights described, neither we nor any affiliate, operates, franchises or has plans to operate or franchise a business under a different trademark that sells or will sell goods or services similar to those offered by you or our other HCK Hot Chicken Franchises.
Source: Item 12 — TERRITORY (FDD pages 37–40)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the territory granted to franchisees is not exclusive. While Hck Hot Chicken will not establish or license another restaurant under the same brand within a franchisee's territory as defined in the Franchise Agreement, franchisees may face competition from other franchisees, company-owned outlets, alternative distribution channels, or competitive brands controlled by Hck Hot Chicken. The territory size typically ranges from a 1-to-3-mile radius around the restaurant, but this can be smaller (two blocks to 1 mile) in major metropolitan downtown areas or central business districts, at Hck Hot Chicken's discretion. The territory boundaries are defined in the Franchise Agreement's Data Sheet (Attachment A) and may be described using zip codes, streets, landmarks, or county lines.
Under an Area Development Agreement, Hck Hot Chicken grants the right to develop and operate a specified number of restaurants within a defined Development Area. While Hck Hot Chicken will not operate or franchise another traditional restaurant in the Development Area during the agreement's term, they reserve the right to operate or license restaurants outside the Development Area, including adjacent locations, and at Non-Traditional Venues even within the Development Area. Hck Hot Chicken also retains the right to operate or franchise other restaurant concepts under different names, even within the Development Area.
Furthermore, Hck Hot Chicken reserves the right to sell products under the Hck Hot Chicken trademark through alternative distribution channels like grocery stores, the Internet, delivery, and catering, without compensating the franchisee. Franchisees are allowed to solicit business from anywhere but are restricted from using alternative distribution channels to make sales. The FDD indicates that catering and delivery services may be provided in the territories of other Hck Hot Chicken restaurants without compensation to the operator of those restaurants, and these policies may allow other Hck Hot Chicken restaurants or third parties to provide catering and delivery services in a franchisee's protected area without compensating them.