What is the maximum service charge Hck Hot Chicken may charge for payments made by the owner?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- HCK may charge Owner a service charge of up to four percent of the total charge for any payment made by Owner or a company controlled by Owner to HCK under this Authorization.
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken may charge a service fee for payments made by the owner or a company controlled by the owner. This service charge can be up to four percent of the total charge.
This means that if a franchisee or their company makes a payment to Hck Hot Chicken, Hck Hot Chicken has the right to add a service charge to the payment. For example, if a franchisee owes Hck Hot Chicken $1,000, Hck Hot Chicken could add a service charge of up to $40 (4% of $1,000), making the total payment $1,040.
This fee is intended to cover the costs associated with processing the payment. Franchisees should factor this potential charge into their financial planning and budgeting. It is important to note that this charge is at Hck Hot Chicken's discretion, and they may not always apply it. Franchisees should confirm with Hck Hot Chicken under what circumstances this service charge is applied.