Where can the franchisor operate Hck Hot Chicken Restaurants at Non-Traditional Venues?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
we own, or from other channels of distribution or competitive brands that we control.
We reserve all rights not expressly granted in the Franchise Agreement. For example, we may own, operate and authorize others to own or operate: (a) HCK Hot Chicken Restaurants at any location outside of your Territory; (b) HCK Hot Chicken Restaurants at Non-Traditional Venues at any location (without regard to the proximity to your Restaurant); and (c) restaurants or other businesses operating under names other than "HCK Hot Chicken," at any location, and of any type whatsoever, within or outside the Territory, without regard to the proximity to your Restaurant and which may sell goods and services similar to those under the "HCK Hot Chicken" brand. In addition, we reserve the right to acquire, or be acquired by any competing system, including a system that has one or more units in your Territory.
Source: Item 12 — TERRITORY (FDD pages 37–40)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the franchisor retains the right to operate Hck Hot Chicken Restaurants at Non-Traditional Venues at any location. This means that Hck Hot Chicken can establish or authorize others to establish Hck Hot Chicken restaurants in Non-Traditional Venues without regard to the proximity to a franchisee's Restaurant.
For a prospective franchisee, this is an important consideration because it means that Hck Hot Chicken could place a Non-Traditional Venue restaurant, such as one in an airport, university, or food court, directly adjacent to or even within their exclusive territory. The franchisee would have no recourse to prevent this, as the franchisor has specifically reserved this right. This could significantly impact the franchisee's potential customer base and revenue.
Furthermore, if a franchisee opens a Non-Traditional Restaurant, they may not receive a Territory and their rights will be limited to the physical site of their Non-Traditional Restaurant. This differs from a traditional restaurant, where the franchisee typically receives a 1-to-3-mile radius territory, or a smaller territory in a Central Business District. This lack of a protected territory around a Non-Traditional Venue could further intensify competition and limit the franchisee's ability to grow their business.