What payment methods are required for fees and other amounts due to Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently require you to pay fees and other amounts due to us or our affiliates via EFT or other similar means. You are required to complete the EFT authorization (in the form attached to this Franchise Disclosure Document in Exhibit I). You are also required to complete the credit card authorization (in the form attached to this Franchise Disclosure Document in Exhibit I), which allows us to charge your credit card for any past due amounts in the event an EFT payment is unsuccessful. We can require an alternative payment method or payment frequency for any fees or amounts owed to us or our affiliates under the Franchise Agreement. If you enter into an Area Development Agreement to operate multiple HCK Hot Chicken Restaurants, the fees indicated in the chart above are the fees charged and/or incurred for each HCK Hot Chicken Restaurant.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees are generally required to pay fees and other amounts via Electronic Funds Transfer (EFT) or similar means. Franchisees must complete an EFT authorization form. Hck Hot Chicken also requires franchisees to complete a credit card authorization form, which allows Hck Hot Chicken to charge the franchisee's credit card for any past due amounts if an EFT payment is unsuccessful. Hck Hot Chicken retains the right to require alternative payment methods or payment frequencies for any fees or amounts owed under the Franchise Agreement. If payment is made via credit card, Hck Hot Chicken may charge a service fee of up to 4% of the total charge.
Several other fees are outlined in Item 6 of the FDD. These include a Food Safety or Other Inspection Field Revisit fee (cost of inspection plus $850 for the first offense and $2,500 for any additional offense), Supplier and Product Evaluation Fee (costs of inspection), Unauthorized Advertising Fee ($500 per occurrence), Customer Issue Resolution (reasonable costs incurred), Late Fee ($100 per occurrence, plus interest), Non-Sufficient Funds Fee (the lesser of $100 per occurrence, or the highest amount allowed by law), Failure to Submit Required Report Fee ($100 per occurrence and $100 per week), Audit Expenses (cost of audit and inspection, any understated amounts, plus Interest, and any related accounting and legal expenses), Management Fee (Our costs and expenses plus a 20% administration charge), Professional Fees and Expenses (will vary under circumstances), Indemnification (will vary under circumstances), Renewal Fee (The greater of 50% of our then-current initial franchise fee, or $20,000), Relocation Fee ($5,000), Transfer Fee ($10,000 per Restaurant), Transfer to Entity (Our actual internal and third-party costs in reviewing the requested transfer), Liquidated Damages (will vary under the circumstances, but not be less than $30,000), Broker Fees (Our actual cost of the brokerage commissions, finder’s fees, or similar charges), and Securities Offering Fee (Area Development Franchises Only) (Our reasonable costs and expenses associated with reviewing the proposed offering).
The Continuing Royalty is 6% of Gross Sales, due on Wednesday of each week via EFT. The Brand Fund Contribution is currently 2% of weekly Gross Sales (may be increased to 4% of weekly Gross Sales), also due weekly. Franchisees must also spend a minimum of 1% of Gross Sales per month on local advertising. Additional fees may include Site Review and Evaluation Fee (actual costs), Insurance (reimbursement of our costs, plus a 20% administration charge), and Additional Training or Assistance (currently $500 to $1,000 per week per person).
Prospective franchisees should be aware of these payment requirements and ensure they have the necessary funds and systems in place to meet these obligations. Understanding the various fees and payment methods is crucial for managing the financial aspects of operating a Hck Hot Chicken franchise.