What is the required dispute resolution process for Hck Hot Chicken before filing for arbitration?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Development Agreement | Summary from the sale of fried chicken, or (iii) any business engaged in the |
|---|---|---|
| preparation, production or sale, at wholesale, of any fried chicken food product. Notwithstanding the foregoing, Competitive Activities shall not include the direct or indirect ownership solely as an investment, of securities of any entity which are traded on any national securities exchange if the owner thereof (i) is not a controlling person of, or a member of a group which controls, such entity and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such entity. | ||
| r. Non-competition covenants after the franchise is terminated or expires | Section 8.2 | Except with our express written consent, no involvement in any Competitive Activities, as defined above, for 2years within the Development Area. |
| s. Modification of the | Section 8.3 | The Area Development Agreement may be modified only by |
| agreement | written agreement between the parties. | |
| t. Integration/merger clause | Section 11.9 | Only the terms of the Area Development Agreement are binding (subject to applicable state law). Any representations or promises outside of this Franchise Disclosure Document and Area Development Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Section 10 | Before either of us may file for arbitration, you and we agree to attempt to resolve any dispute pursuant to mediation held in the principal city closest to our principal place of business (currently Sarasota, FL) and the mediation will be governed in accordance with Rules of Practice and Procedure of Judicial Arbitration & Mediation Services, Inc., unless otherwise agreed, subject to applicable state law. |
| v. Choice of forum | Sections 10.1,10.2 and 11.15 | Before either of us may file arbitration, you and we agree to attempt to resolve any dispute pursuant to mediation held in the principal city closest to our principal place of business (currently Sarasota, FL) and the mediation will be governed in accordance with Rules of Practice and Procedure of Judicial Arbitration & Mediation Services, Inc., unless otherwise agreed. Subject to applicable state law, litigation must be in the principal city closest to our principal place of business (currently Sarasota, FL). |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–51)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, before either the franchisee or Hck Hot Chicken can file for arbitration, both parties must first attempt to resolve the dispute through mediation. This mediation is to be held in the principal city closest to Hck Hot Chicken's principal place of business, which is currently Sarasota, FL.
The mediation process will be governed by the Rules of Practice and Procedure of Judicial Arbitration & Mediation Services, Inc., unless both parties agree to a different set of rules. This initial step of mediation is a prerequisite before either party can proceed to arbitration, indicating Hck Hot Chicken's preference for resolving disputes through a less formal and potentially more cost-effective method.
This requirement to attempt mediation before arbitration is a fairly standard practice in franchising, as it encourages parties to find common ground and resolve issues without resorting to lengthy and expensive arbitration or litigation. Prospective Hck Hot Chicken franchisees should understand this process and be prepared to engage in mediation in Sarasota, FL, should a dispute arise. Franchisees should also be aware that the location of mediation and potential litigation is set in Florida, which may require additional travel and legal considerations depending on where the franchise is located.