Does Hck Hot Chicken guarantee the suitability or success of a site that they accept for a franchisee's restaurant?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
You are solely responsible for selecting the site of your Restaurant, which will be subject to our review and acceptance. We do not locate sites for you. We do not generally own the premises and lease it to you. Although we will consult with you on your site and require your site be subject to our final acceptance, you have the ultimate responsibility in choosing, obtaining, and developing the site for your Restaurant. We do not guarantee the suitability or success of the accepted site (Franchise Agreement, Section 5.2).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING,COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–37)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees are ultimately responsible for selecting, obtaining, and developing the site for their restaurant. While Hck Hot Chicken will consult with franchisees on their site selection and requires the site to be subject to their final acceptance, Hck Hot Chicken does not guarantee the suitability or success of the accepted site. This means that even if Hck Hot Chicken approves a location, the franchisee bears the risk if the site turns out to be unsuccessful.
This is a common practice in franchising, where the franchisee typically assumes the responsibility for site selection and its potential success. Although Hck Hot Chicken provides consultation and requires final acceptance, the franchisee should conduct thorough due diligence to ensure the site meets their specific needs and market conditions. This due diligence might include market research, demographic studies, traffic analysis, and competitive assessments.
The franchisee should carefully consider the implications of this policy and understand that Hck Hot Chicken's approval does not equate to a guarantee of success. It is crucial for prospective franchisees to independently evaluate the suitability of any proposed site and not solely rely on the franchisor's acceptance. Franchisees should seek professional advice from real estate experts and consultants to make informed decisions about site selection.