Must the Franchisor's acceptance of the Operating Principal for an Hck Hot Chicken franchise be in writing?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The Operating Principal must be approved by Franchisor in writing.
Thereafter, Franchisee shall promptly, but not later than 30 days after the prior Operating Principal ceases to serve Franchisee, (w) designate a replacement operating principal who meets Franchisor's then-current qualification requirements, (x) provide Franchisor with such information about such new Operating Principal as Franchisor may request, (y) cause such replacement Operating Principal to undergo, at Franchisee's cost, such training as Franchisor may require, and (z) obtain Franchisor's written acceptance of such person as the Operating Principal.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the franchisor's acceptance of the Operating Principal must be in writing. The FDD states that the Operating Principal must be approved by Hck Hot Chicken in writing. Furthermore, when a replacement Operating Principal is designated, the franchisee must obtain Hck Hot Chicken's written acceptance of that person.
This requirement ensures that Hck Hot Chicken maintains control over who is managing the franchise location. The Operating Principal is responsible for the day-to-day operations and ensuring compliance with the franchise agreement and brand standards. By requiring written approval, Hck Hot Chicken can verify that the individual meets their qualifications and standards before they take on this critical role.
For a prospective franchisee, this means that they need to present any proposed Operating Principal to Hck Hot Chicken for approval and receive that approval in writing. This process should be factored into the timeline for opening or transitioning the management of a Hck Hot Chicken franchise. The franchisee should also be aware that Hck Hot Chicken's acceptance does not guarantee the individual's performance and that Hck Hot Chicken retains the right to disapprove of the Operating Principal later on.