How often does Hck Hot Chicken prepare a statement of contributions and expenditures for the Brand Fund?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ine existing Authorized Products; (vi) generally improve chain wide understanding of the System (collectively, the "Information"). Without limiting the generality of the foregoing:
- 10.1.1 Franchisee will electronically link the Franchised Restaurant to Franchisor and itsthird-party supplier and will allow Franchisor to poll on a daily or more frequent basis.
- 10.1.2 For restaurants not on the "HCK Hot Chicken" Information System, at Franchisor's request, on or before Wednesday of each Week during the Term hereof, Franchisee shall submit a Gross Sales report signed by Franchisee, on a form prescribed by Franchisor, reporting all Gross Sales for the preceding Week, together with such additional financial information as Franchisor may from time-to-time request. If the Franchisee fails to submit any required report when due, Franchisee must pay a fee of $100 per occurrence and $100 per Week until the Franchisee submits the required report, which shall be deposited into the Brand Fund or such other fund as Franchisor may designate.
- 10.1.3 Within 90 days following the end of each calendar year, Franchisee shall submit to Franchisor an unaudited financial statement prepared in accordance with generally accepted accounting principles, and in such form and manner prescribed by Franchisor, which shall be certified by Franchisee to be accurate and complete. Promptly upon Franchisor's request, Franchisee will furnish Franchisor with a copy of each of Franchisee's reports and returns of sales, use, and gross receipt taxes re
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
Based on the 2025 Hck Hot Chicken Franchise Disclosure Document, the frequency with which Hck Hot Chicken prepares a statement of contributions and expenditures for the Brand Fund is not specified in the provided excerpts. The excerpts do discuss the Brand Fund and how it is used, as well as franchisee contributions to the fund. They also detail the franchisee's obligation to electronically link their restaurant to Hck Hot Chicken and its third-party supplier, allowing Hck Hot Chicken to poll data on a daily or more frequent basis. Franchisees not on the Hck Hot Chicken Information System must submit a gross sales report weekly. Additionally, franchisees must submit an unaudited financial statement within 90 days of each calendar year's end. However, none of these sections explicitly state how often Hck Hot Chicken provides franchisees with a report detailing the Brand Fund's income and expenses.
A prospective franchisee would want to know how often they will receive an accounting of the Brand Fund to ensure transparency and accountability in how their contributions are being used. Understanding the frequency of these reports allows franchisees to track the fund's performance and assess the effectiveness of marketing and promotional activities. This information is crucial for making informed business decisions and evaluating the overall value of the franchise system.
To gain clarity on this matter, a prospective Hck Hot Chicken franchisee should directly ask the franchisor about the specific reporting frequency for the Brand Fund's statement of contributions and expenditures. It would also be beneficial to inquire about the format and content of these reports to fully understand how the Brand Fund is managed and how the franchisor ensures responsible allocation of the funds.