For what purposes may the Brand Fund be used to promote the Hck Hot Chicken brand?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 8; Non-Traditional Location Addendum, Section 14)**
Brand Fund
We require you to pay a Brand Fund Contribution, currently equal to two percent of your weekly Gross Sales to our Brand Fund (see Item 6). We reserve the right to increase or otherwise modify the Brand Fund Contribution to four percent when we have at least 50 operating Restaurants. We, or our affiliates, will direct all creative programs and control the creative concepts, materials and media used, media placement and allocation. We have complete discretion on how the Brand Fund will be utilized. We may use the Brand Fund for local, regional, or national marketing, advertising, sales promotion and promotional materials, new product development and testing, public and consumer relations, website development and search engine optimization, the development of technology for the System, secret shopper programs, and any other purpose to promote the HCK Hot Chicken brand. Non-Traditional Location Restaurants may not be eligible to participate in some of the Brand Fund programs. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We do not guarantee that advertising expenditures from the Brand Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We assume no fiduciary duty to you or other direct or indirect liability or obligation to collect amounts due to the Brand Fund or to maintain, direct or administer the Brand Fund.
The Brand Fund may be used for all costs of administering, directing, preparing, placing, and paying for national, regional, or local advertising to promote and enhance the image, identity or patronage of HCK Hot Chicken Restaurants owned by us and by franchisees. We may reimburse ourselves for the reasonable costs we and any outside vendors we utilize incur in the administration of the fund. We will not use the Brand Fund Contributions for advertising that is principally a solicitation for the sale of Franchises, but we reserve the right to include a notation in any advertisement indicating "Franchises Available" or similar phrasing or include information regarding acquiring a Franchise on or as a part of materials and items produced by or for the Brand Fund. The Brand Fund will be in a separate bank account, commercial account or savings account. The Brand Fund is not audited. We will provide an annual accounting when available for the Brand Fund that shows how the Brand Fund proceeds have been spent for the previous year upon written request.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING,COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–37)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Brand Fund can be used for a variety of purposes to promote the brand. Hck Hot Chicken has complete discretion on how the Brand Fund will be utilized. These include local, regional, or national marketing, advertising, sales promotion and promotional materials, new product development and testing, public and consumer relations, website development and search engine optimization, the development of technology for the System, secret shopper programs, and any other purpose to promote the HCK Hot Chicken brand.
The Brand Fund may also cover all costs related to administering, directing, preparing, placing, and paying for advertising at the national, regional, or local level. This advertising aims to promote and enhance the image, identity, or patronage of Hck Hot Chicken Restaurants, whether they are owned by the company or by franchisees. Hck Hot Chicken may also reimburse themselves for reasonable costs and those of outside vendors for administering the fund.
While the Brand Fund will not be used primarily for soliciting franchise sales, Hck Hot Chicken reserves the right to include a notation such as "Franchises Available" in any advertisement or include information about acquiring a franchise on materials produced for the Brand Fund. The Brand Fund is held in a separate bank, commercial, or savings account and while it is not audited, Hck Hot Chicken will provide an annual accounting of how the funds were spent in the previous year upon written request. Any unused funds will be applied to the following year, and Hck Hot Chicken reserves the right to contribute or loan additional funds to the Brand Fund as they deem reasonable. Hck Hot Chicken may dissolve the Brand Fund at any point, and any remaining funds will either be spent or distributed pro rata before dissolution.