What are the primary responsibilities of the Operating Principal for an Hck Hot Chicken franchise?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
is Agreement and the Franchised Restaurant. The Operating Principal shall have the full authority to act on behalf of Franchisee in regard to performing, administering, or amending this Agreement. The Operating Principal shall be vested with the authority and responsibility for the day-to-day operations of the Franchised Restaurant and all other Restaurants owned or operated, directly or indirectly, by Franchisee or its Affiliates within a geographic area specified by Franchisor. The Operating Principal shall, during the entire period he or she serves as such, meet the following qualifications: (a) unless otherwise agreed in writing, shall devote one hundred percent (100%) of his/her time and best efforts to the operation of all Restaurants owned or operated, directly or indirectly, by Franchisee or its Affiliates in such geographic area; (b) meet Franchisor's educational, experience, financial and other reasonable criteria for such position, as set forth in the HCK Hot Chicken Brand Standards Manual or otherwise in writing by Franchisor; (c) be an Owner with ten percent (10%) or more (directly or indirectly), in the aggregate, of the Equity or voting rights in Franchisee; and (d) be an individual acceptable to Franchisor. The Operating Principal must be approved by Franchisor in writing. The Operating Principal shall be responsible for all actions necessary to ensure that all Restaurants owned or operated, directly or indirectly, by Franchisee in such geographic area are operated in compliance with this Agreement and the HCK Hot Chicken Brand Standards Manual. If during the Term the Operating Principal is not able to continue to serve in such capacity or no longer qualifies to act as such in accordance with this Section (including Franchisor's subsequent disapproval of such person), Franchisee shall promptly notify Franchisor of such occurrence.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Operating Principal is primarily responsible for the day-to-day operations of the franchised restaurant. This individual must have the authority to manage the restaurant and any other restaurants owned or operated by the franchisee or its affiliates within a specified geographic area. The Operating Principal also acts as the main point of contact between the franchisee and Hck Hot Chicken, handling business, operational, and other ongoing matters related to the franchise agreement.
To qualify for the role, the Operating Principal must dedicate 100% of their time and effort to the operation of all restaurants under their purview, unless otherwise agreed to in writing by Hck Hot Chicken. They must also meet the franchisor's criteria for the position, as detailed in the Hck Hot Chicken Brand Standards Manual or other written communications from the franchisor. Furthermore, the Operating Principal must hold at least 10% equity or voting rights in the franchisee entity and be approved by Hck Hot Chicken in writing.
The Operating Principal is accountable for ensuring that all restaurants under their management comply with the franchise agreement and the Hck Hot Chicken Brand Standards Manual. If the Operating Principal is unable to continue in their role or no longer meets the qualifications, the franchisee must promptly notify Hck Hot Chicken and designate a qualified replacement within 30 days. This replacement must also meet Hck Hot Chicken's requirements and undergo any necessary training at the franchisee's expense.
In addition to these responsibilities, the Operating Principal, or a major owner acceptable to Hck Hot Chicken, must attend Hck Hot Chicken's annual convention and pay the registration fee, regardless of attendance, unless precluded due to defaults or multiple notices of default. The franchisee is responsible for all travel expenses and wages for their attendee. The franchisor will certify one Operating Principal at no cost, but reserves the right to charge fees for additional certifications or re-certifications.