What is the meaning of 'Successor Franchise Agreement' for Hck Hot Chicken?
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)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, a 'Successor Franchise Agreement' concerns the franchisee's right to renew their franchise agreement for an additional term. The franchisee must provide written notice to Hck Hot Chicken between six and twelve months before the current term expires, indicating their intent to exercise this right. This 'Notice of Election' must be followed by executing and forwarding the Successor Franchise Agreement, along with the renewal fee, within a specific timeframe after receiving Hck Hot Chicken's Franchise Disclosure Document and the agreement itself.
To successfully obtain a Successor Franchise Agreement, the franchisee must meet certain conditions. They must have consistently fulfilled all obligations under the existing franchise agreement, the HCK Hot Chicken Brand Standards Manual, and any other agreements with Hck Hot Chicken or its affiliates. Failure to comply with these requirements or to deliver the necessary notices on time will result in the franchisee's Successor Franchise Right lapsing automatically.
If the franchisee meets all conditions, Hck Hot Chicken will execute the Successor Franchise Agreement and provide a fully executed copy to the franchisee before the current term expires. The initial and second successor franchise agreements may be modified to align with the successor franchise rights granted in the original franchise agreement, unless otherwise agreed upon in writing by both parties. This ensures continuity and outlines the terms for the continued operation of the Hck Hot Chicken franchise.