Does the Hck Hot Chicken franchisor's price to the franchisee include a profit?

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the prices charged to franchisees for goods, services, products, and supplies may include a profit for the franchisor. The FDD states that Hck Hot Chicken expects to receive a mark-up based on its or their cost of goods sold.

This means that when a Hck Hot Chicken franchisee purchases items from the franchisor or its affiliates, the price they pay may be higher than the franchisor's internal cost. This difference accounts for the franchisor's profit margin on those goods and services. The franchisor can change these prices with prior written notice, ensuring that prices remain consistent among similarly situated franchisees, excluding costs like shipping and insurance.

For a prospective Hck Hot Chicken franchisee, this implies that the cost of goods purchased from the franchisor will likely contribute to the franchisor's revenue stream. While this is a common practice in franchising, it's important for franchisees to factor in these mark-ups when projecting their operating costs and potential profitability. Franchisees should also be aware that the franchisor may discontinue selling certain goods or services if they become unprofitable or undesirable, which could impact the franchisee's supply chain and menu offerings.