If a Hck Hot Chicken franchisee abandons the restaurant, how does the termination become effective?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3 Option to Terminate Without Opportunity to Cure.
Franchisee shall be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon receipt of notice by Franchisor upon the occurrence of any of the following events:
- 14.3.1 Abandonment.
If Franchisee shall abandon the Franchised Restaurant.
For purposes of this Agreement, "abandon" shall refer to (i) Franchisee's failure, at any time during the term of this Agreement, to keep the Premises or Franchised Restaurant open and operating for business for a period of three consecutive days, except as provided in the HCK Hot Chicken Brand Standards Manual, (ii) Franchisee's failure to keep the Premises or Franchised Restaurant open and operating for any period after which it is not unreasonable under the facts and circumstances for Franchisor to conclude that Franchisee does not intend to continue to operate the Franchised Restaurant, unless such failure to operate is due to Force Majeure (subject to Franchisee's continuing compliance with this Agreement), (iii) failure to actively and continuously maintain and answer the telephone listed by Franchisee for the Franchised Restaurant solely with the "HCK Hot Chicken" name (as the same may be modified in accordance with this Agreement); (iv) the withdrawal of permission from the applicable lessor that results in Franchisee's inability to continue operation of the Franchised Restaurant; or (v) closing of the Franchised Restaurant required by Applicable Law if such closing was not the result of a violation of this Agreement by Franchisor.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, if a franchisee abandons the franchised restaurant, Hck Hot Chicken can terminate the franchise agreement immediately. The termination is effective upon the franchisee's receipt of notice from Hck Hot Chicken. The franchisee does not have an opportunity to remedy or cure this default.
The FDD defines "abandon" as the franchisee's failure to keep the restaurant open and operating for business for three consecutive days, unless otherwise provided in the HCK Hot Chicken Brand Standards Manual. Abandonment also includes any period where Hck Hot Chicken concludes the franchisee does not intend to continue operating the restaurant, unless the failure to operate is due to Force Majeure, provided the franchisee continues to comply with the agreement. Other conditions that constitute abandonment are failure to maintain and answer the telephone listed for the restaurant solely with the "HCK Hot Chicken" name, withdrawal of permission from the lessor resulting in the franchisee's inability to operate, or closure required by law if the closure resulted from the franchisee's violation of the agreement.
This immediate termination clause for abandonment is a significant point for prospective franchisees. It highlights the importance of maintaining continuous operation and adhering to brand standards. Franchisees need to be aware of the specific conditions that constitute abandonment and the potential consequences of failing to meet these operational requirements. The franchisee must also maintain awareness of the HCK Hot Chicken Brand Standards Manual, as it may contain exceptions to the definition of abandonment.