Is Hck Hot Chicken required to deal exclusively with the Operating Principal?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may, but is not required to, deal exclusively with the Operating Principal in such regards unless and until Franchisor's actual receipt of written notice from Franchisee of the appointment of a successor Operating Principal who shall have been accepted by Franchisor.
Franchisee's Operating Principal is identified in Attachment A of this Agreement.
- 7.2.2 Franchisee shall notify Franchisor in writing at least ten days prior to employing the Operating Principal setting forth in reasonable detail all information reasonably requested by Franchisor.
Franchisor's acceptance of the Operating Principal shall not constitute Franchisor's endorsement of such individual or a guarantee by Franchisor that such individual will perform adequately for Franchisee or its Affiliates, nor shall Franchisor be estopped from subsequently disapproving or otherwise challenging such person's qualifications or performance.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken is not required to deal exclusively with the Operating Principal. However, Hck Hot Chicken may choose to deal exclusively with the Operating Principal until they receive written notice from the franchisee regarding the appointment of a successor Operating Principal that Hck Hot Chicken accepts.
The Operating Principal is identified in Attachment A of the Franchise Agreement. The franchisee must notify Hck Hot Chicken in writing at least ten days before employing the Operating Principal, providing all information reasonably requested by Hck Hot Chicken. Hck Hot Chicken's acceptance of the Operating Principal does not constitute an endorsement or guarantee of their performance, nor does it prevent Hck Hot Chicken from later disapproving or challenging the person's qualifications or performance.
This arrangement allows Hck Hot Chicken to maintain a consistent point of contact for important communications and decisions related to the franchise. However, it also gives the franchisee the flexibility to change the Operating Principal, provided they follow the notification and approval procedures. This is a fairly common practice in franchising, as it allows the franchisor to maintain standards while giving the franchisee some autonomy in managing their business.