What release is required from a Hck Hot Chicken franchisee and its owners when requesting consent for assignment?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) The Franchisee, and its Owners, if the Franchisee is an Entity, shall execute a general release under seal, in a form prescribed by Franchisor, of any and all claims against Franchisor, its Affiliates, Owner(s), directors, officers, agents and employees;
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, when a franchisee seeks consent for assignment, both the franchisee and its owners (if the franchisee is an entity) must execute a general release. This release, in a form prescribed by Hck Hot Chicken, covers any and all claims against Hck Hot Chicken, its affiliates, owners, directors, officers, agents, and employees.
This requirement means that before Hck Hot Chicken will approve the transfer of the franchise to a new owner, the current franchisee and their owners must waive any existing or potential future claims against the franchisor. This is a fairly standard practice in franchising, designed to prevent future litigation or disputes arising from the previous franchisee's operation of the business.
Prospective franchisees should carefully review the form of the general release to understand the full scope of claims being waived. It is advisable to consult with an attorney to fully understand the implications before signing such a release. This requirement ensures that Hck Hot Chicken is protected from potential liabilities associated with the previous franchisee's actions.