If Hck Hot Chicken's Franchisor cures a default, how is the cost handled?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to all other remedies herein granted if Franchisee shall default in the performance of any of its obligations or breach any term or condition of this Agreement or any related agreement, Franchisor may, at its election, immediately or at any time thereafter, without waiving any claim for default or breach hereunder and without notice to Franchisee, cure such default or breach for the account and on behalf of Franchisee, and the cost to Franchisor thereof shall be due and payable on demand and shall be deemed to be additional compensation due to Franchisor hereunder and shall be added to the amount of compensation next accruing hereunder, at the election of 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 defaults on their obligations, Hck Hot Chicken has the option to cure the default on behalf of the franchisee. If Hck Hot Chicken chooses to cure a default, the franchisee is responsible for covering the costs incurred by Hck Hot Chicken.
The costs that Hck Hot Chicken incurs to cure the default are due immediately upon demand from Hck Hot Chicken. These costs are considered additional compensation owed to Hck Hot Chicken under the franchise agreement.
Furthermore, Hck Hot Chicken has the option to add these costs to the next compensation payment due from the franchisee. This means that the franchisee will have to reimburse Hck Hot Chicken for the costs of curing the default in addition to their regular franchise fees and other payments.