Must Hck Hot Chicken franchisees participate in all advertising and marketing programs?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless specifically directed by us in writing, you must participate in all advertising, marketing, secret shopper programs, promotions, research, and public relations programs instituted by the Brand Fund.
Franchisee shall only use and display approved advertising material provided, from time to time, by Franchisor and shall use and display all material in accordance with Franchisor's policies, standards, and specifications. Franchisee must obtain the prior written consent of Franchisor to use and/or display any advertising materials, including, without limitation, all print and electronic advertising, social media postings or listings, website postings or listings, newspaper and magazine advertisements, direct mailers, and mail coupons, not provided by Franchisor. Franchisee shall submit all such materials to Franchisor for approval and Franchisor shall grant or deny such approval within 15 days of receiving the materials. If Franchisor has not approved such materials within 15 days, the materials shall be deemed disapproved. If the Franchisee uses any marketing, advertising or promotional materials or campaigns that the Franchisor has not approved, the Franchisee will pay the Franchisor an "Unauthorized Advertising Fee" of $500 per occurrence which shall be contributed to the Brand Fund in the Franchisor's sole discretion.
In addition to the Brand Fund Contributions, you must spend one percent (1%) of your annual Gross Sales on local advertising each year ("Local Advertising Requirement"). If you fail to spend the Local Advertising Requirement, you will be required to pay the difference to the Brand Fund. You agree, at your sole cost and expense, to issue and offer such rebates, giveaways, and other promotions according to advertising programs established by us, and further agree 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. You will not create or issue any gift cards/certificates and will only sell gift cards/certificates that have been issued or sponsored by us and that are accepted at all HCK Hot Chicken Restaurants, and you will not issue coupons or discounts of any type except as approved by us.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 44)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees are generally required to participate in advertising, marketing, and promotional programs instituted by the Brand Fund, unless specifically directed otherwise in writing by Hck Hot Chicken.
Hck Hot Chicken requires franchisees to spend 1% of annual Gross Sales on local advertising. If a franchisee fails to meet this local advertising requirement, they must pay the difference to Hck Hot Chicken or the Brand Fund, if established. Franchisees must also issue and honor rebates, giveaways, and other promotions as part of Hck Hot Chicken's advertising programs, provided that doing so does not violate any laws or regulations. Franchisees are restricted from creating their own gift cards or certificates, and can only sell those issued or sponsored by Hck Hot Chicken. Additionally, franchisees cannot issue coupons or discounts without Hck Hot Chicken's approval.
Franchisees must use only approved advertising material provided by Hck Hot Chicken and display it according to Hck Hot Chicken's policies. Franchisees need to get written consent from Hck Hot Chicken before using or displaying any advertising materials not provided by Hck Hot Chicken, including print, electronic advertising, social media, website postings, and direct mailers. If Hck Hot Chicken does not approve the advertising materials within 15 days of submission, the materials are considered disapproved. If a franchisee uses unapproved marketing or advertising materials, they will pay Hck Hot Chicken an Unauthorized Advertising Fee of $500 per occurrence, which will be contributed to the Brand Fund.