Can an Hck Hot Chicken franchisee terminate the Area Development Agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
r our costs and expenses associated with reviewing the proposed offering. |
| Provision | Development Agreement | Summary from the sale of fried chicken, or (iii) any business engaged in the |
|---|---|---|
| preparation, production or sale, at wholesale, of any fried chicken food product. Notwithstanding the foregoing, Competitive Activities shall not include the direct or indirect ownership solely as an investment, of securities of any entity which are traded on any national securities exchange if the owner thereof (i) is not a controlling person of, or a member of a group which controls, such entity and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such entity. | ||
| r. Non-competition covenants after the franchise is terminated or expires | Section 8.2 | Except with our express written consent, no involvement in any Competitive Activities, as defined above, for 2years within the Development Area. |
| s. Modification of the | Section 8.3 | The Area Development Agreement may be modified only by |
| agreement | written agreement between the parties. | |
| t. Integration/merger clause | Section 11.9 | Only the terms of the Area Development Agreement are binding (subject to applicable state law). Any representations or promises outside of this Franchise Disclosure Document and Area Development Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Section 10 | Before either of us may file for arbitration, you and we agree to attempt to resolve any dispute pursuant to mediation held in the principal city closest to our principal place of business (currently Sarasota, FL) and the mediation will be governed in accordance with Rules of Practice and Procedure of Judicial Arbitration & Mediation Services, Inc., unless otherwise agreed, subject to applicable state law. |
| v. Choice of forum | Sections 10.1,10.2 and 11.15 | Before either of us may file arbitration, you and we agree to attempt to resolve any dispute pursuant to mediation held in the principal city closest to our principal place of business (currently Sarasota, FL) and the mediation will be governed in accordance with Rules of Practice and Procedure of Judicial Arbitration & Mediation Services, Inc., unless otherwise agreed. Subject to applicable state law, litigation must be in the principal city closest to our principal place of business (currently Sarasota, FL). |
| w. Choice of law | Section 11.8 | The laws of the state of Florida, subject to applicable state law. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–51)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not contain specific details on the conditions under which a Hck Hot Chicken franchisee can terminate the Area Development Agreement. Item 17 includes tables outlining provisions related to renewals, terminations, transfers, and dispute resolution for both the Franchise Agreement and the Area Development Agreement. However, the summary sections within these tables do not explicitly state the franchisee's right to terminate the Area Development Agreement. The tables primarily focus on assignment, transfer conditions, and dispute resolution, but not the franchisee's termination rights.
While the FDD excerpts detail conditions for franchisor termination and franchisee transfer options, the franchisee's ability to terminate the Area Development Agreement is not addressed. The document does mention modification of the agreement, stating that it may be modified only by written agreement between the parties. This suggests that termination might be possible through a mutually agreed upon written agreement.
A prospective Hck Hot Chicken franchisee should carefully review the complete Area Development Agreement and Franchise Agreement for specific clauses pertaining to termination rights. It is essential to consult with a legal professional to fully understand the terms and conditions under which the franchisee can terminate the agreement, as this is not explicitly covered in the provided FDD excerpts. Further inquiry should be made to the franchisor regarding termination conditions to fully understand the obligations and potential liabilities.