Does the Hck Hot Chicken franchisee retain any rights to goodwill after termination?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 General. Upon the expiration or termination of Franchisee's rights granted under this Agreement:
- 15.1.1 Franchisee shall immediately cease to use all Trade Secrets, the Marks, and any confusingly similar trademark, service mark, trade name, logotype, or other commercial symbol or insignia. Franchisee shall immediately return the HCK Hot Chicken Brand Standards Manual, all training materials, electronic files, records, customer lists, files, advertising and promotional materials and all other written materials incorporating Trade Secrets and all copies of the whole or any part thereof to Franchisor. Franchisee shall at its own cost make cosmetic changes to the Franchised Restaurant so that it no longer contains or resembles Franchisor's proprietary designs, including: Franchisee shall remove all materials that would identify the
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, franchisees do not retain rights to the goodwill of the Hck Hot Chicken brand upon termination or expiration of the franchise agreement. Instead, the franchisee must immediately cease using all trademarks, service marks, trade names, logotypes, or other commercial symbols associated with Hck Hot Chicken. They are also required to return the Hck Hot Chicken Brand Standards Manual, training materials, customer lists, and all other written materials containing trade secrets to the franchisor.
Furthermore, the franchisee is responsible for making cosmetic changes to the restaurant to ensure it no longer resembles a Hck Hot Chicken franchise. This includes removing materials that identify the location as a Hck Hot Chicken restaurant and altering distinctive design features. In some instances, Hck Hot Chicken may elect to take possession of the restaurant to maintain continuous operation and protect its interests.
These stipulations are typical in franchising, as the brand's goodwill is considered a valuable asset of the franchisor. By preventing former franchisees from continuing to operate under a similar guise, Hck Hot Chicken protects its brand identity and reputation. This ensures customers can continue to associate the Hck Hot Chicken name with a consistent standard of quality and service, regardless of location or ownership.