What is the purpose of the Non-Traditional Venue Addendum for Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
this Collateral Assignment of Lease as
EXHIBIT I-8
HCK HOT CHICKEN FRANCHISE
NON-TRADITIONAL LOCATION ADDENDUM TO FRANCHISE AGREEMENT
THIS NON-TRADITIONAL RESTAURANT LOCATION ADDENDUM ("Addendum") is entered into on the date set forth in Attachment A between Hot Chikn Kitchn LLC, a Florida limited liability company ("Franchisor"), and the franchisee identified on the signature page of this Addendum ("Franchisee").
RECITALS
- A. Franchisor and Franchisee have entered that certain HCK Hot Chicken franchise agreement of even date herewith ("Franchise Agreement"), pursuant to which Franchisee will operate a HCK Hot Chicken franchise in a Non-Traditional Venue.
- B. Franchisor and Franchisee desire to amend the terms of the Franchise Agreement to incorporate certain terms of this Addendum into the Franchise Agreement. Capitalized terms not defined in this Addendum shall have the meanings set forth in the Franchise Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties and subject to the following terms and conditions, it is agreed as follows:
-
- NON-TRADITIONAL VENUE. Franchisee desires to operate a HCK Hot Chicken restaurant located in a Non-Traditional Venue (a "Non-Traditional Restaurant"). Except for Sections 2.3, 8.3.1, 8.3.3, 9.3.2, 9.4.1, 11.8, 12.1.2, 12.2.1, 13.2.3(f) and 13.2.3(i) of the Franchise Agreement, the final reference in Section 9.7.2, as used in the definitions of "Competitive Activities," "Crisis Management Event," "Restaurant," "System" and "Traditional Restaurant" in Appendix 1 to the Franchise Agreement, and except as otherwise provided in this Addendum, all references in the Agreement to the defined term "Restaurant" are deleted and the reference "Non-Traditional Restaurant" is inserted in their place. Franchisor and Franchisee acknowledge and agree that the products and services offered for sale from the Non-Traditional Restaurant, and the standards and specifications of Franchisor and its affiliates, may differ from that of a traditional HCK Hot Chicken Restaurant and will be subject to alternative standards and specifications developed and made available by Franchisor and its affiliates.
-
- PREMISES. The following is hereby added as a new Section 2.5 to the Franchise Agreement:
- "2.5 Host Facility. If indicated in Attachment A to the Non-Traditional Addendum to this Franchise Agreement, the Non-Traditional Restaurant shall be located within or adjacent to a host facility ("Host Facility") which is described in Attachment A thereto. If the placement and operation of the Non- Traditional Restaurant in or in connection with the Host Facility requires the consent of the owner, franchisor, and/or licensor of the Host Facility, Franchisee agrees to obtain such consent in writing (and provide a copy thereof to Franchisor), and Franchisee acknowledges and agrees that such consent is a condition precedent to the grant of Franchisee'sright to establish and operate the Non-Traditional Restaurant. Franchisee acknowledges and agrees that the Location will be strictly limited to the physical area within the Host Facility occupied by the Non-Traditional Restaurant. The "Location" cannot and will not under any circumstances be defined as a geographic area or be described in terms other than a specific location within the Host Facility. During the term of this Agreement, the Location shall be used exclusively to operate a Non-Traditional Restaurant. During the term of this Agreement, Franchisee may not relocate the Location within the Host Facility. If the
Non-Traditional Location is within a Host Facility, Franchisor has approved the location and facility identified on Attachment A to the Non- Traditional Addendum. Franchisee acknowledges and warrants that Franchisor's approval of the Location, and the Host Facility does not constitute a guarantee, recommendation, or endorsement of the Location or Host Facility and that the success of the Non-Traditional Restaurant to be operated at the Location within the Host Facility depends upon Franchisee's abilities as an independent businessperson."
- OPERATING PRINCIPAL. The definition of Operating Principal in Section 1.1 of the Franchise Agreement is hereby amended and restated as follows:
"a person, or such other individual hereafter designated by Franchisee, and accepted by Franchisor (and until subsequently disapproved by Franchisor), to serve as the prime representative in matters concerning the Franchisor's brand requirements under this Agreement. Operating Principals are Franchisee's designated employees who will complete the training required by Franchisor. They shall be full-time employees at the Premises but shall not be required to remain solely at the Franchised Restaurant."
- INITIAL TRAINING. Section 6.1.1 of the Franchise Agreement is hereby amended and restated as follows:
"Franchisor shall provide an Initial Training Program in the Franchisor's System and methods of operation (the "Initial Training Program") at the Franchisor's training facilities in Woodbridge, VA, or other location specified by Franchisor, for Franchisee (or if Franchisee is an Entity, Franchisee's Operating Principal) and up to three management persons selected by Franchisee. In addition to the Initial Training Program, Franchisee's Operating Principal and, if applicable, Director of Operations (defined in Section 7.2.5) must also attend the extra practice week training program at least 60 days before your Non-Traditional Restaurant opens for business (the "Extra Practice Week") and online training. Except as otherwise provided, the Initial Training Program and the Extra Practice Week shall be provided by Franchisor prior to the opening of the Franchised Restaurant and must be completed before the Franchised Restaurant opens to the public. Franchisee shall pay all Travel Expenses and Wages, and other expenses, if any, incurred by Franchisee and/or Franchisee's employees in connection with attendance at training programs. Franchisee may not open the Franchised Restaurant until such training has been completed to the satisfaction of Franchisor and Franchisee's management team has been certified by Franchisor. All personnel attending training must have first successfully completed the "ServSafe Manager" program or similar program specified by Franchisor. Franchisee's Operating Principal must attend a third week of extra practice training."
Section 6.5 of the Franchise Agreement is hereby amended and restated as follows:
"Franchisee must have at least one certified Restaurant Manager ("Restaurant Manager") on staff. The Restaurant Manager may be the Operating Principal. If Franchisee operates multiple restaurants at the Non-Traditional Venue, the Restaurant Manager may not serve or work for any other restaurants or operations of Franchisee except for the Non-Traditional Restaurant."
- OPERATING PRINCIPAL AND MANAGER. Section 7.2.1 of the Franchise Agreement is hereby amended and restated as follows:
"The Operating Principal shall be principally responsible for communicating and coordinating with Franchisor regarding business, operational and other ongoing matters concerning this Agreement and the Franchised Restaurant. The Operating Principal shall have the full authority to act on behalf of Franchisee in regard to performing and administering the day-to-day operations under this Agreement. 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 his/her time and best efforts to the operation of the Franchised Restaurant; (b) meet Franchisor's educational, experience, and other reasonable criteria for such position,
as set forth in the Brand Standards Manual or otherwise in writing by Franchisor; and (c) be an individual acceptable to Franchisor. The Operating Principal must be approved by Franchisor in writing.
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, the Non-Traditional Venue Addendum is designed to amend the terms of the standard Franchise Agreement to accommodate the operation of a Hck Hot Chicken franchise within a non-traditional venue. This addendum acknowledges that the franchisee will operate a Hck Hot Chicken restaurant in a Non-Traditional Venue. The addendum modifies specific sections of the standard franchise agreement, replacing references to "Restaurant" with "Non-Traditional Restaurant" except in certain listed sections.
The addendum recognizes that the products, services, standards, and specifications of a Hck Hot Chicken Non-Traditional Restaurant may differ from those of a traditional Hck Hot Chicken Restaurant. These differences will be subject to alternative standards and specifications developed by Hck Hot Chicken. The document also includes stipulations regarding host facilities, specifying that if the Non-Traditional Restaurant operates within a host facility, the franchisee must obtain the necessary consent from the host facility's owner, franchisor, or licensor. The location of the franchise is limited to the physical area within the host facility and cannot be relocated during the agreement term.
Furthermore, the Non-Traditional Venue Addendum addresses brand standards, stating that the Brand Standards Manual may not fully apply to Non-Traditional Restaurants due to the limited nature of their operations. Hck Hot Chicken may issue an abbreviated Brand Standards Manual specifically for Non-Traditional Restaurants. The addendum also covers operational aspects such as hours of operation, allowing for flexibility based on the nature of the premises and potential closures directed by the location owner. Additionally, it includes guidelines for uniforms, gift card programs, online ordering, and the maintenance of common areas shared with other businesses within the premises.
In summary, the Non-Traditional Venue Addendum ensures that the standard Hck Hot Chicken franchise agreement is appropriately adapted for the unique circumstances of operating within a non-traditional venue, addressing potential differences in standards, operations, and location-specific requirements.