What is the Hck Hot Chicken franchisor's obligation regarding consent to assignments?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's failure to exercise such ROFR shall not constitute consent to the transfer or a waiver of any other provision of this Agreement, including any of the requirements of this Section with respect to the proposed transfer.
The ROFR is fully assignable by Franchisor.
Without waiving any other rights provided for herein or otherwise, Franchisor hereby waives its ROFR if the proposed transferee/assignee is an immediate family member of Franchisee;
(d) The Franchisee shall not be in default under the terms of this Agreement (or any other related agreement), the HCK Hot Chicken Brand Standards Manual or any other obligations owed Franchisor, and all of its then-due monetary obligations to Franchisor shall have been paid in full;
(e) The Franchisee, and its Owners, if the Franchisee is an Entity, shall execute a general release under seal, in a form prescribed by Franchisor, of any and all claims against Franchisor, its Affiliates, Owner(s), directors, officers, agents and employees;
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken FDD, the franchisor's failure to exercise its right of first refusal (ROFR) does not automatically constitute consent to the transfer or a waiver of any other provisions within the franchise agreement. This means that even if Hck Hot Chicken decides not to exercise its ROFR, the franchisee must still meet all other requirements for the proposed transfer to be approved.
Specifically, the franchisee must not be in default under the terms of the agreement, the Hck Hot Chicken Brand Standards Manual, or any other obligations to the franchisor. All monetary obligations due to Hck Hot Chicken must be paid in full at the time of the proposed transfer. Additionally, the franchisee, and its owners if the franchisee is an entity, must execute a general release of all claims against Hck Hot Chicken, its affiliates, owners, directors, officers, agents, and employees in a form prescribed by the franchisor.
However, Hck Hot Chicken waives its ROFR if the proposed transferee/assignee is an immediate family member of the franchisee. This waiver simplifies the transfer process within the franchisee's immediate family, but all other conditions for the transfer must still be met. This ensures that even family members meet the brand's standards and obligations, maintaining consistency and protecting the Hck Hot Chicken brand's integrity.