Will Hck Hot Chicken provide notice of noncompliance if an inspection reveals a deficiency?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
he Franchised Restaurant. Franchisee shall pay Franchisor its then-current fee for any such inspection, which shall be due to Franchisor directly upon invoicing. This fee is not refundable under any circumstances. If any such inspection indicates any deficiency or unsatisfactory condition with respect to any matter required under this Agreement or the HCK Hot Chicken Brand Standards Manual, including quality, cleanliness, service, health and authorized product line, Franchisor will notify Franchisee in writing of Franchisee's noncompliance with the HCK Hot Chicken Brand Standards Manual, the System, or this Agreement and Franchisee shall promptly correct or repair such deficiency or unsatisfactory condition. In addition, Franchisee will be required to undergo an additional audit or re- inspection at Franchisee's sole expense. In the event of an additional audit or reinspection based on a deficiency or unsatisfactory condition, Franchisee shall pay Franchisor an $850 fee for the first offense, or a $2,500 for any additional offense, in addition to reimbursing Franchisor's costs and expenses (including any legal or other professional fees) in connection with such audit or inspection
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, if an inspection reveals a deficiency or unsatisfactory condition, Hck Hot Chicken will provide written notice of noncompliance to the franchisee. This notice will detail the franchisee's failure to meet the standards outlined in the HCK Hot Chicken Brand Standards Manual, the System, or the Franchise Agreement. The franchisee is then required to promptly correct or repair the identified issues.
Furthermore, the franchisee may be required to undergo an additional audit or re-inspection at their own expense to verify that the deficiencies have been addressed. For the first offense resulting in an additional audit or re-inspection, Hck Hot Chicken charges a fee of $850. For any subsequent offenses, this fee increases to $2,500, in addition to the franchisee reimbursing Hck Hot Chicken's costs and expenses, including legal and professional fees, associated with the audit or inspection.
Hck Hot Chicken also retains the right to mandate immediate corrective action, which may include temporarily closing the franchised restaurant, as per Section 7.4 of the agreement. This underscores the importance of maintaining compliance with Hck Hot Chicken's standards to avoid potential financial penalties and operational disruptions.