What are members of the Hck Hot Chicken advertising cooperative responsible for?

According to the 2025 Hck Hot Chicken FDD, members of a local or regional advertising cooperative are responsible for administering the cooperative, including determining the amount of contributions from each member. Each Hck Hot Chicken restaurant that the franchisor owns within the cooperative's area will contribute to the cooperative on the same basis as franchisees. Franchisees in each cooperative will contribute up to two percent (2%) of monthly Gross Sales for each Restaurant that the franchisee owns that exists within the cooperative's area. The franchisor defines the area of each local and regional advertising cooperative based on their assessment of the area.

The franchisor may require that each cooperative operate with governing documents and prepare annual unaudited financial statements. The franchisor also reserves the right to form, change, dissolve, or merge any advertising cooperative formed in the future. If such cooperatives already exist near a franchisee's territory, the franchisee will be required to participate in compliance with the provisions of the Brand Standards Manual, which the franchisor may periodically modify at their discretion.

Any contributions that a franchisee is required to make to any such cooperative may be applied towards the Local Advertising Requirement, which is one percent (1%) of annual Gross Sales. If a franchisee fails to spend the Local Advertising Requirement, the franchisee will be required to pay the difference to the franchisor, or if established, the Brand Fund. This means that participation in the advertising cooperative can help franchisees meet their local advertising obligations, but they must adhere to the franchisor's standards and guidelines.