Does Hck Hot Chicken have an obligation to maintain the Intranet indefinitely?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.14.1 Franchisor may establish and maintain an Intranet through which franchisees of Franchisor may communicate with each other, and through which Franchisor and Franchisee may communicate with each other and through which Franchisor may disseminate the HCK Hot Chicken Brand Standards Manual, updates thereto and other confidential information. Franchisor shall have discretion and control over all aspects of the Intranet, including the content and functionality thereof. Franchisor will have no obligation to maintain the Intranet indefinitely, and may dismantle it at any time without liability to Franchisee.
- 7.14.2 Franchisee shall have the mere privilege to use the Intranet, subject to Franchisee's strict compliance with the standards and specifications, protocols, and restrictions that Franchisor may establish from time to time. Such standards and specifications, protocols and restrictions may relate to, among other things, (a) the use of abusive, slanderous or otherwise offensive language in electronic communications, (b) communications between or among franchisees that endorse or encourage Default of any franchisee's franchise agreement, or other agreement with Franchisor or its Affiliates, (c) confidential treatment of materials that Franchisor transmits via the Intranet, (d) password protocols and other security precautions, including limitations on the number and types of employees that may be granted access to the Intranet, (e) grounds and procedures for Franchisor's suspending or revoking a franchisee's access to the Intranet, and (f) a privacy policy governing Franchisor's access to and use of electronic communications that franchisees post to the Intranet. Franchisee acknowledges that, as administrator of the Intranet, Franchisor can technically access and view any communication that any person posts on the Intranet. Franchisee further acknowledges that the Intranet facility and all communications that are posted to it will become Franchisor's property, free of any claims of privacy or privilege that Franchisee or any other person may assert.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken is not obligated to maintain the Intranet indefinitely. Hck Hot Chicken retains full discretion and control over all aspects of the Intranet, including its content and functionality. This means Hck Hot Chicken can modify or even dismantle the Intranet at any time without incurring any liability to the franchisee.
For a prospective franchisee, this implies that reliance on the Intranet as a permanent resource for communication, brand standards, or confidential information may not be guaranteed. The franchisee has a "mere privilege" to use the Intranet, contingent upon strict compliance with Hck Hot Chicken's standards and specifications. These standards may cover a range of issues, including appropriate online conduct, protection of confidential materials, and security protocols.
Furthermore, Hck Hot Chicken, as the Intranet administrator, has the ability to access and view any communication posted on the platform, and all such communications become the property of Hck Hot Chicken. This includes the right to suspend or revoke a franchisee's access to the Intranet if the franchisee defaults on the franchise agreement. In such cases, Hck Hot Chicken is only required to provide a paper copy of the HCK Hot Chicken Brand Standards Manual and any updates, if not previously provided, unless the franchisee is not otherwise entitled to it.
Given this, prospective franchisees should recognize that the Intranet is a tool provided at Hck Hot Chicken's discretion, and its continuous availability and functionality are not guaranteed. Franchisees should ensure they maintain alternative means of communication and information access in case the Intranet is modified or discontinued.