What is the late fee for a missing report for Hck Hot Chicken, and where does the money go?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
s report signed by Franchisee, on a form prescribed by Franchisor, reporting all Gross Sales for the preceding Week, together with such additional financial information as Franchisor may from time-to-time request. If the Franchisee fails to submit any required report when
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 fails to submit a required report when it is due, they must pay a fee of $100 per occurrence. Additionally, they will be charged $100 per week until the report is submitted. These fees are deposited into the Brand Fund or another fund designated by Hck Hot Chicken.
This policy ensures that Hck Hot Chicken franchisees promptly submit all required reports. The Brand Fund is commonly used for marketing and promotional activities that benefit all franchisees. By directing the late fees into this fund, Hck Hot Chicken incentivizes timely reporting while also ensuring that the penalties contribute to the overall growth and brand recognition of the franchise system.
Prospective franchisees should be aware of this reporting requirement and the associated penalties for non-compliance. It is important to understand the types of reports required, the deadlines for submission, and the potential impact of late fees on their business's financial performance. Franchisees should also inquire about how the Brand Fund is managed and how it benefits the franchise system.