Is Hck Hot Chicken required to approve any supplier proposed by a franchisee?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
he proposed Supplier, a written statement of approval with respect to such Supplier, such Supplier shall be deemed disapproved as a Supplier of the authorized Non-Proprietary Products described in such notice. Nothing in this Section shall require Franchisor to approve any Supplier, and without limiting Franchisor's right to approve or disapprove a Supplier in its discretion, Franchisee acknowledges that it is generally disadvantageous to the system from a cost and service basis to have more than one Supplier in any given market area and that among the other factors Franchisor may consider in deciding whether to approve a proposed Supplier, it may consider the effect that such approval may have on the ability of Franchisor and its Franchisees to obtain the lowest distribution costs and on the quality and uniformity of products offered system-wide. Without limiting the foregoing, Franchisor may disapprove a proposed Supplier, if in Franchisor's opinion, the approval of the proposed Supplier would disrupt or adversely impact Franchisor's national or regional distributional arrangements. Franchisor may also determine that certain Non-Proprietary Products (e.g. beverages) shall be limited to a designated brand or brands set by Franchisor which brand(s) it may change from time to time. Franchisor may revoke its approval upon the Supplier's failure to continue to meet any of Franchisor's criteria. Franchisee agrees that at such times that Franchisor establishes a regional purchasing program for any of the raw materials used in the preparation of Authorized Products or other Non-Proprietary Products used in the operation of the Franchised Restaurant, which may benefit Franchisee by reduced price, lower labor costs, production of improved products, increased reliability in supply, improved distribution, raw material cost control (establishment of consistent pricing for reasonable periods to avoid market fluctuations), improved operations by Franchisee or other tangible benefits to Franchisee, Franchisee will participate in such purchasing program in accordance with the terms of such program.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, franchisees may propose suppliers for approval. Hck Hot Chicken is not required to approve any supplier proposed by a franchisee. The document states that nothing requires Hck Hot Chicken to approve any supplier. Hck Hot Chicken retains the discretion to approve or disapprove suppliers.
When a franchisee wants to use a supplier not already approved, they must submit a written request to Hck Hot Chicken. This request must include the supplier's name and address, any information requested by Hck Hot Chicken or the HCK Hot Chicken Brand Standards Manual, and the specific non-proprietary products the franchisee wants to purchase from that supplier.
Hck Hot Chicken will evaluate the proposed supplier and use good faith efforts to notify the franchisee of its decision within 30 days of receiving the request and all required information. However, if Hck Hot Chicken does not provide written approval within this 30-day period, the supplier is deemed disapproved. Hck Hot Chicken may disapprove a supplier if it believes the approval would disrupt existing distribution arrangements or negatively impact the ability to obtain the lowest distribution costs and maintain product quality and uniformity across the system.