Can Hck Hot Chicken require franchisees to pay for orders on a cash-in-advance basis?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
4.10 Payment Methods and Frequencies. Franchisor has the right to periodically specify (in the HCK Hot Chicken Brand Standards Manual or otherwise in writing) different payees, payment frequencies and/or payment methods, such as, but not limited to, weekly/biweekly/monthly payment, payment by auto-draft, credit card and payment by check upon 30 days' written notice to Franchisee.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
Based on the 2025 FDD, it is not explicitly stated whether Hck Hot Chicken can require franchisees to pay for orders on a cash-in-advance basis. However, the FDD does state that Hck Hot Chicken has the right to periodically specify different payment methods.
Specifically, Section 4.10 mentions that Hck Hot Chicken can specify payment methods such as payment by auto-draft, credit card, and payment by check. This suggests that Hck Hot Chicken has considerable control over payment methods and could potentially implement a cash-in-advance system if they deem it necessary.
Prospective franchisees should inquire with Hck Hot Chicken about the specific payment terms and conditions for orders, as well as the circumstances under which the payment methods might change. Understanding these policies is crucial for managing cash flow and maintaining a positive relationship with the franchisor.