What is the length of the Second Successor Term for an Hck Hot Chicken franchise?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) unless otherwise mutually agreed in writing, the First Successor Franchise Agreement and the Second Successor Franchise Agreement shall be modified to conform to the Successor Franchise Rights granted in franchisee's original franchise agreement for the Franchised Restaurant.
3.3 Form and Manner of Exercising Successor Franchise Right.
The Successor FranchiseRight shall be exercised, if at all, strictly in the following manner:
3.3.1 Between six months and 12 months before the expiration of the Term, Franchisee shall notify Franchisor in writing ("Notice of Election") that it intends to exercise its Successor Franchise Right and no sooner than immediately after the expiration of any waiting period(s) by Applicable Law and no more than 30 days after Franchisee receives Franchisor's Franchise Disclosure Document, if applicable, and the execution copy of the applicable Successor Franchise Agreement, Franchisee shall execute and forward a copy of Successor Franchise Agreement with the renewal fee described in Section 3.2.2(a).
3.3.2 If Franchisee shall have exercised its Successor Franchise Right in accordance with Section 3.3 of this Agreement and satisfied all of the conditions contained in Section 3.4 of this Agreement, Franchisor shall execute the Successor Franchise Agreement, executed by Franchisee and at or prior to the expiration of the Term, deliver one fully executed copy thereof to Franchisee.
3.4 If Franchisee fails to perform any of the acts, or deliver any of the notices required pursuant to the provisions of Sections 3.3 or 3.4 of the Agreement, in a timely fashion, such failure shall be deemed an election by Franchisee not to exercise its Successor Franchise Right and shall automatically cause Franchisee's said Successor Franchise Right to lapse and expire.
3.5 Conditions Precedent to Entering into a Successor Franchise Agreement.
Franchisee's Successor Franchise Right is conditioned upon Franchisee's fulfillment of each and all of the following conditions precedent:
- 3.5.1 At the time Franchisee delivers its Notice of Election to Franchisor and at all times thereafter until the commencement of the applicable Successor Term, Franchisee shall have fully performed, in all material respects, all of its obligations under the Agreement, the HCK Hot Chicken Brand Standards Manual and all other agreements then in effect between Franchisee and Franchisor (or itsAffiliates).
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
Based on the 2025 Hck Hot Chicken Franchise Disclosure Document, the length of the Second Successor Term is not explicitly stated. However, the document does mention that the First and Second Successor Franchise Agreements will be modified to conform to the Successor Franchise Rights granted in the original franchise agreement.
This implies that the duration of the Second Successor Term is tied to the terms outlined in the initial franchise agreement. To exercise the Successor Franchise Right, a franchisee must notify Hck Hot Chicken between six and twelve months before the expiration of the current term. Following this notification, the franchisee must execute and forward the Successor Franchise Agreement with the renewal fee after receiving Hck Hot Chicken's Franchise Disclosure Document and the agreement itself.
It is important to note that the franchisee must be in full compliance with all existing agreements and standards to qualify for a successor franchise. Failure to meet these conditions or to follow the outlined procedures will result in the lapse of the Successor Franchise Right. A prospective franchisee should clarify the exact length of the initial term and the Successor Terms with the franchisor before signing the agreement.