Is a Hck Hot Chicken franchisee required to offer rebates and giveaways?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
8.2.1 In addition to the Brand Fund Contributions, Franchisee must spend one percent (1%) of annual Gross Sales on local advertising each year ("Local Advertising Requirement"). If Franchisee fails to spend the Local Advertising Requirement, Franchisee will be required to pay the difference to us, or if established, the Brand Fund. Franchisee agrees, at its sole cost and expense, to issue and offer such rebates, giveaways, and other promotions in accordance with advertising programs established by Franchisor, and further agrees to honor the rebates, giveaways, and other promotions issued by other HCK Hot Chicken franchisees under any such program, so long as such compliance does not contravene any applicable law, rule, or regulation. Franchisee will not create or issue any gift cards/certificates, and will only sell gift cards/certificates that have been issued or sponsored by Franchisor and which are accepted at all HCK Hot Chicken Restaurants, and Franchisee will not issue coupons or discounts of any type except as approved by 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 participate in advertising programs that may include rebates and giveaways. Specifically, franchisees must spend 1% of their annual gross sales on local advertising. If a franchisee fails to meet this spending requirement, they must pay the difference to Hck Hot Chicken or the Brand Fund, if one is established.
As part of these advertising programs, franchisees are obligated to issue and honor rebates, giveaways, and other promotions established by Hck Hot Chicken. This includes honoring promotions issued by other Hck Hot Chicken franchisees, provided that doing so does not violate any applicable laws or regulations.
However, franchisees are restricted in their ability to create their own promotions. They cannot create or issue gift cards or certificates unless these are issued or sponsored by Hck Hot Chicken and accepted at all locations. Additionally, franchisees cannot issue coupons or discounts without the franchisor's approval. This ensures that all promotional activities align with the overall brand strategy and standards set by Hck Hot Chicken.