What will Hck Hot Chicken do with any remaining funds if the Brand Fund is dissolved?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Although we do not intend to do so, we may dissolve the Brand Fund at any point. If we decide to dissolve the Brand Fund, we will either spend or distribute pro rata any remaining funds before dissolution.
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 may be dissolved at any point, although Hck Hot Chicken does not intend to do so. If Hck Hot Chicken decides to dissolve the Brand Fund, it will either spend any remaining funds or distribute them pro rata before the dissolution.
This means that if the Brand Fund is dissolved, franchisees could potentially receive a portion of the remaining funds, proportional to their contributions. This is a benefit for franchisees, as they could recoup some of their investment in the Brand Fund. However, Hck Hot Chicken has the discretion to spend the funds instead of distributing them, so there is no guarantee that franchisees will receive any money back.
It is important to note that the Brand Fund is not audited, but Hck Hot Chicken will provide an annual accounting of how the Brand Fund proceeds have been spent for the previous year upon written request. Franchisees should carefully consider the terms of the Brand Fund and the potential for its dissolution before investing in a Hck Hot Chicken franchise.