What were the grand opening marketing fees for Hck Hot Chicken in 2024?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
allows Franchisee to use the Marks and the other intellectual property of the System and that pays for Franchisor's ongoing support and assistance.
- 4.3 Brand Fund Contribution. Franchisee shall pay to Franchisor each Week during the Term, as provided in Section 4.5, a Brand Fund contribution equal to two percent (2%) of Franchisee's Gross Sales during the preceding Week ("Brand Fund Contribution"). Franchisor reserves the right to increase this fee to up to four percent (4%) of Franchisee's Gross Sales when 50 Restaurants are operating. Franchisor shall contribute the Brand Fund Contribution to the Brand Fund to be administered in the manner provided in Section 8.3 of this Agreement (the "Brand Fund").
- 4.4 Technology Fee. In addition to any amounts that the Franchisee may be required to pay to third party providers, suppliers or vendors related to the computer and technology system to be operated in the Franchised Restaurant, Franchisee must pay Franchisor the then-current "Technology Fee" for costs incurred by the Franchisor for technology management and certain technologies used in the operation of the Franchised Restaurant. Franchisee shall pay Franchisor the Technology Fee on the first Wednesday of each month beginning in the month following the date Franchisee opens the Restaurant. The Technology Fee for the first partial month of operations shall be pro-rated and delivered with the first payment of the Technology Fee.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the information about grand opening marketing fees for Hck Hot Chicken in 2024 is not explicitly detailed in the provided excerpts. However, the FDD does mention several fees related to marketing and advertising.
The document outlines a "Brand Fund Contribution" where franchisees pay 2% of their gross sales, which Hck Hot Chicken reserves the right to increase to 4% when 50 restaurants are operating. This fund is used for advertising, public relations, and promotional campaigns. Additionally, if a franchisee uses unapproved marketing materials, they may incur an "Unauthorized Advertising Fee" of $500 per occurrence, which is contributed to the Brand Fund.
While the FDD details ongoing marketing contributions and potential penalties for unapproved advertising, it does not specify any distinct, upfront "grand opening marketing fees." A prospective franchisee should inquire with Hck Hot Chicken about any specific marketing requirements or fees associated with the opening of a new location to fully understand these costs.