If a customer complains to Hck Hot Chicken, who is responsible for the cost of remedying the complaint?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If any of Franchisee's customers contact Franchisor with a complaint or issue, Franchisor may in its sole discretion remedy such complaint or issue in which case Franchisee must reimburse Franchisor for any such remedy deemed appropriate in Franchisor's sole discretion.
In the event of the occurrence of a Crisis Management Event, Franchisor may also establish emergency procedures pursuant to which Franchisor may require Franchisee to, among other things, temporarily close the Franchised Restaurant to the public, in which event Franchisor shall not be liable to Franchisee for any losses or costs, including consequential damages or loss profits occasioned thereby.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the responsibility for the cost of remedying customer complaints depends on who addresses the complaint. If a customer contacts Hck Hot Chicken directly with a complaint, Hck Hot Chicken has the discretion to resolve the issue. However, the franchisee is then responsible for reimbursing Hck Hot Chicken for any costs that Hck Hot Chicken deems appropriate in resolving the complaint.
This arrangement means that Hck Hot Chicken franchisees may face unexpected expenses if Hck Hot Chicken chooses to intervene in customer complaints. The franchisee's reimbursement obligation is subject to Hck Hot Chicken's discretion, potentially creating uncertainty about the financial impact of customer service issues. Franchisees should clarify with Hck Hot Chicken what types of remedies they might deem appropriate and what the typical cost ranges are.
Conversely, if the customer lodges the complaint directly with the franchisee, the franchisee is expected to resolve all reasonable complaints to the customer's satisfaction. This implies the franchisee bears the direct cost of these resolutions. This dual system highlights the importance of franchisees proactively managing customer relations to minimize the likelihood of complaints escalating to Hck Hot Chicken, which could result in additional costs for the franchisee.
It is also important to note that the Hck Hot Chicken Brand Standards Manual contains standards for management and personnel, and standards of maintenance and appearance of the Franchised Restaurant. The manual also requires posting notices to customers as to how to contact the Franchisor to submit complaints and feedback. The franchisee is responsible for a $500 replacement fee to the Franchisor if the franchisee's copy of the HCK Hot Chicken Brand Standards Manual is lost, destroyed, or significantly damaged.