What is the non-refundable deposit required when submitting a transfer application for an Hck Hot Chicken franchise?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| not completed. You will also be required to pay any professional fees that we incur for certain transfers as discussed in this Item 6. | |||
| Indemnification | Will vary under circumstances | As incurred | You must indemnify and reimburse us for any expenses or losses, including professional fees that we or our representatives incur related in any way to your HCK Hot Chicken Restaurant or Franchise. |
| Renewal Fee | The greater of 50% of our then-current initial franchise fee, or $20,000 | At the time you sign the new franchise agreement | Payable if you qualify to renew your Franchise Agreement and choose to enter into a successor franchise agreement. |
| Relocation Fee | $5,000 | As incurred | Payable if we permit you to relocate your HCK Hot Chicken Restaurant. |
| Transfer Fee (Note 7) | $10,000 per Restaurant | $1,000 non refundable deposit at time of transfer application submittal, and the remaining balance of fee at time of approved transfer | Payable when you transfer your Franchise or upon any "Assignment" as defined in the Franchise Agreement. Unless we approve otherwise, in our sole discretion, you will not be able to transfer single Restaurants or franchise agreements for unopened Restaurants under the Area Development Agree |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, a franchisee must submit a $1,000 non-refundable deposit when submitting a transfer application. The total transfer fee is $10,000 per restaurant, with the remaining balance due upon approval of the transfer. This fee is payable when a franchisee transfers their franchise or upon any "Assignment" as defined in the Franchise Agreement.
This non-refundable deposit means that regardless of whether the transfer is ultimately approved, the franchisee will not receive this money back. This is a fairly standard practice in franchising, as it covers the franchisor's costs of reviewing the application and assessing the potential new franchisee.
It is important to note that Hck Hot Chicken, in its sole discretion, may not allow the transfer of single restaurants or franchise agreements for unopened restaurants under an Area Development Agreement. Franchisees should carefully review the Franchise Agreement and any Area Development Agreements to understand the specific conditions and restrictions related to transferring a franchise. Franchisees should also be aware that they may incur additional professional fees related to the transfer, as outlined in Item 6 of the FDD.