For how long does the Hck Hot Chicken Credit Card Authorization remain in effect?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Owner agrees that this Authorization will remain in effect for each HCK Franchise Agreement of Owner, or a company controlled by Owner, throughout the duration of the applicable Franchise Agreement, unless HCK agrees to an earlier termination of this Authorization. Owner agrees not to revoke any Authorization prior to the termination of the applicable Franchise Agreement, without prior written consent of HCK. Owner agrees that the credit card issuer cannot cancel this Authorization without receiving written consent from HCK.
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, the Credit Card Authorization remains in effect for the duration of each Hck Hot Chicken Franchise Agreement that the owner has, or a company controlled by the owner has, unless Hck Hot Chicken agrees to an earlier termination. The owner is not allowed to revoke the authorization before the termination of the Franchise Agreement without Hck Hot Chicken's written consent, and the credit card issuer cannot cancel the authorization without written consent from Hck Hot Chicken.
This means that as a Hck Hot Chicken franchisee, you're committing to allowing Hck Hot Chicken to charge your credit card for various fees and charges throughout the entire term of your franchise agreement. This includes royalties, brand fund contributions, technology fees, and other potential charges. The authorization remains valid for the life of the agreement unless Hck Hot Chicken agrees to end it sooner.
This arrangement provides Hck Hot Chicken with a direct and ongoing method to collect payments, reducing the risk of late or missed payments from franchisees. However, it also places a significant responsibility on the franchisee to ensure sufficient funds are available and to monitor charges closely. The franchisee must also notify Hck Hot Chicken of any changes to the account information within one business day and execute a new authorization form within three business days of receiving it from Hck Hot Chicken.
It is important for a prospective Hck Hot Chicken franchisee to fully understand the terms and conditions of the Credit Card Authorization, including the types of charges that may be applied, the frequency of charges, and the process for resolving any disputes. Maintaining open communication with Hck Hot Chicken regarding account information and payment issues is crucial to avoid any potential disruptions or penalties.