What is the late fee that Hck Hot Chicken may charge per incident?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
) for the amount of all Continuing Royalties, Brand Fund Contributions, technology fees, training and certification fees, convention fees, inspection and evaluation fees, late fees, interest charges, past due fees, and other fees and charges owed by Owner or a company controlled by Owner to HCK each time Owner, or a company controlled by Owner, does not otherwise pay its fees when due or an EFT payment by Owner is unsuccessful.
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- HCK may charge the following "Late Fee" and interest to Owner's credit card account, with or apart from the actual Continuing Royalties, Brand Fund Contributions, technology fees, training and certification fees, conven
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, Hck Hot Chicken has the right to charge a late fee of $100 per incident. Additionally, Hck Hot Chicken can charge interest on the past due amount. The interest will be calculated at a rate of the lesser of 12% per year or the highest rate allowed by law, accruing from the date of default.
This means that franchisees must prioritize timely payments to Hck Hot Chicken to avoid incurring these additional costs. The late fee can quickly add up if payments are consistently delayed, and the interest charges can further increase the financial burden. Franchisees should ensure they have sufficient funds available to cover all fees and charges when they are due.
Furthermore, Hck Hot Chicken has the right to charge these fees to the franchisee's credit card account, which is outlined in the Credit Card Authorization form. This authorization allows Hck Hot Chicken to automatically deduct the late fees, interest charges, and other outstanding amounts from the franchisee's account, ensuring that they are promptly compensated for any delayed payments. Franchisees should be aware of this authorization and ensure they have sufficient credit available to cover any potential charges.