What is the 'Notice of Election' in the context of a Hck Hot Chicken franchise agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, the 'Notice of Election' is a written notification from the franchisee to the franchisor indicating the franchisee's intent to exercise their Successor Franchise Right. This notice must be provided between six and twelve months before the expiration of the current franchise term.
Following the Notice of Election, the franchisee must execute and forward a copy of the Successor Franchise Agreement, along with the renewal fee, no sooner than immediately after any waiting period required by applicable law. This must be done no more than 30 days after receiving Hck Hot Chicken's Franchise Disclosure Document and the execution copy of the Successor Franchise Agreement.
Failure to provide the Notice of Election within the specified timeframe or to fulfill all conditions outlined in the franchise agreement will result in the franchisee's Successor Franchise Right lapsing. This means the franchisee loses the opportunity to renew their franchise agreement. To ensure the renewal proceeds smoothly, the franchisee must be in full compliance with all obligations under the existing agreement, the HCK Hot Chicken Brand Standards Manual, and any other agreements with the franchisor at the time the Notice of Election is delivered and throughout the successor term.