To whom is the payment for the initial franchise fee for Hck Hot Chicken made?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | To Whom | ||||
|---|---|---|---|---|---|
| Method of | |||||
| Type of Expenditure | Low Estimate | High Estimate | Payment | When Due | Payment Is to be Made |
| Initial Franchise Fee1 | $40,000 | $40,000 | Lump Sum | Upon signing Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–23)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the initial franchise fee is paid to the franchisor, referred to as "us" in the document. The initial franchise fee for a single Hck Hot Chicken franchise is $40,000. This fee is due upon the execution of the Franchise Agreement.
If a prospective franchisee enters into an Area Development Agreement to develop multiple Hck Hot Chicken restaurants, they must pay a Development Fee upon signing the Area Development Agreement and Franchise Agreement for their first restaurant. The Development Fee varies depending on the number of restaurants the franchisee commits to develop. This fee is also paid to "us".
For each restaurant developed under the Area Development Agreement, the Development Fee will be credited toward the initial franchise fee. The franchisee must then pay "us" the remaining balance of the initial franchise fee when signing a Franchise Agreement for each additional restaurant in their Development Schedule. All fees paid to Hck Hot Chicken are uniform and non-refundable under any circumstances once paid.