If Hck Hot Chicken modifies or discontinues a Mark, what is the franchisee's obligation?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If it becomes advisable, at any time, for us and/or you to modify or discontinue using any Mark and/or use one or more additional or substitute trademarks or service marks, you must comply with our directions within a reasonable time after receiving notice. We will not reimburse you for your direct expenses of changing signage, for any loss of revenue, or other indirect expenses due to any modified or discontinued Mark, or for your expenses of promoting a modified or substituted trademark or service mark.
Source: Item 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, if Hck Hot Chicken decides to modify or discontinue a trademark, franchisees must comply with the company's directions within a reasonable time after receiving notice. This means a franchisee must promptly take the necessary steps to implement the changes Hck Hot Chicken requires regarding the brand's trademarks.
However, Hck Hot Chicken will not reimburse franchisees for any direct expenses incurred while changing signage, loss of revenue, or other indirect expenses resulting from the modified or discontinued mark. Franchisees are also not entitled to reimbursement for expenses related to promoting a modified or substituted trademark or service mark. This lack of reimbursement for these changes could create a financial burden for franchisees when Hck Hot Chicken updates its branding or trademarks.
This policy is fairly typical in franchising. Franchise agreements usually grant the franchisor the right to modify trademarks and require franchisees to implement those changes. However, some franchise agreements may offer some financial assistance or reimbursements to franchisees to offset these costs, so it is important to understand that Hck Hot Chicken does not offer this.