factual

Can Hck Hot Chicken franchisees bring class action or consolidated claims in arbitration?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

All arbitration proceedings and claims shall be filed and prosecuted separately and individually in the name of Franchisee and Franchisor, and not in any class action or representative capacity, and shall not be joined with or consolidated with claims asserted by or against any other franchisee.

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 prohibited from participating in class action or consolidated claims in arbitration. The document specifies that all arbitration proceedings and claims must be filed and prosecuted separately and individually, in the name of the franchisee or franchisor alone. This means a franchisee cannot join with other franchisees to bring a single, collective claim against Hck Hot Chicken.

This requirement for individual arbitration is a notable restriction for prospective Hck Hot Chicken franchisees. It prevents franchisees from leveraging the collective power of a class action to address widespread issues or disputes with the franchisor. Each franchisee must pursue their claims independently, bearing the full cost and effort of arbitration. This can be a significant disadvantage, especially if the individual claims are relatively small or the legal issues are complex.

Furthermore, the arbitration proceedings will be held in the location closest to Hck Hot Chicken's principal place of business, which is currently Sarasota, FL, unless otherwise prohibited by applicable law. This could impose additional travel and logistical costs on franchisees who are located far from Florida. The arbitrators are also restricted from awarding punitive or exemplary damages, limiting the potential remedies available to a franchisee in a dispute. These factors should be carefully considered by anyone evaluating a Hck Hot Chicken franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.