How many consecutive days of closure constitute abandonment of a Hck Hot Chicken restaurant?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon receipt of notice by Franchisor upon the occurrence of any of the following events:
- 14.3.1 Abandonment.
If Franchisee shall abandon the Franchised Restaurant.
For purposes of this Agreement, "abandon" shall refer to (i) Franchisee's failure, at any time during the term of this Agreement, to keep the Premises or Franchised Restaurant open and operating for business for a period of three consecutive days, except as provided in the HCK Hot Chicken Brand Standards Manual, (ii) Franchisee's failure to keep the Premises or Franchised Restaurant open and operating for any period after which it is not unreasonable under the facts and circumstances for Franchisor to conclude that Franchisee does not intend to continue to operate the Franchised Restaurant, unless such failure to operate is due to Force Majeure (subject to Franchisee's continuing compliance with this Agreement), (iii) failure to actively and continuously maintain and answer the telephone listed by Franchisee for the Franchised Restaurant solely with the "HCK Hot Chicken" name (as the same may be modified in accordance with this Agreement); (iv) the withdrawal of permission from the applicable lessor that results in Franchisee's inability to continue operation of the Franchised Restaurant; or (v) closing of the Franchised Restaurant required by Applicable Law if such closing was not the result of a violation of this Agreement by Franchisor.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, a franchisee is considered to have abandoned their restaurant if they fail to keep the premises open and operating for business for three consecutive days. This abandonment clause can trigger immediate termination of the franchise agreement by Hck Hot Chicken, without any opportunity for the franchisee to correct the issue.
There is an exception to this rule, as noted in the Hck Hot Chicken Brand Standards Manual. The manual may contain provisions that allow for temporary closures under certain circumstances, which would not be considered abandonment. Additionally, if the failure to operate is due to Force Majeure, and the franchisee continues to comply with the agreement, it may not be considered abandonment.
It is important for prospective Hck Hot Chicken franchisees to carefully review the Hck Hot Chicken Brand Standards Manual to understand the specific circumstances under which a temporary closure is permitted. Franchisees should also maintain open communication with Hck Hot Chicken to ensure any necessary closures due to unforeseen circumstances are properly documented and do not lead to accusations of abandonment and subsequent termination of the franchise agreement.