What are the requirements for maintaining a bank account for payments as a Hck Hot Chicken franchisee?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
t that the software is not functioning, or this feature is not available, Franchisee shall prepare and submit the required reports manually.
4.6 EFT and Pre-Authorized Payments.
4.6.1 Franchisee, at Franchisee's sole cost and expense, shall instruct its bank to paythe amount of its Continuing Royalty, Brand Fund Contribution and other fees directly to Franchisor from Franchisee's account, by electronic funds transfer or such other automatic payment mechanism which Franchisor may designate ("EFT") and upon the terms and conditions set forth in the HCK Hot Chicken Brand Standards Manual, and promptly upon Franchisor's request, Franchisee shall execute or re-execute and deliver to Franchisor such pre-authorized check forms and other instruments or drafts required by Franchisor's bank, payable against Franchisee's bank account, to enable Franchisor to draw Franchisee's Continuing Royalty, Brand Fund Contributions and other sums payable under the terms of this Agreement. Franchisee must at all times during the term of this Agreement (including any renewal terms) maintain at least one credit card account in good standing and with a minimum available credit line of $10,000.00 and complete the credit card authorization form which allows Franchisor to charge the credit card for any past due amounts owed to Franchisor or an approved supplier in the event an EFT payment is unsuccessful. Franchisor's current form of EFT authorization and credit card authorization is attached to the Franchise Disclosure Document in Exhibit I. Franchisee shall also, in addition to those terms and conditions set forth in the HCK Hot Chicken Brand Standards Manual, maint
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees must instruct their bank to make payments for Continuing Royalty fees, Brand Fund Contributions, and other fees directly to Hck Hot Chicken via electronic funds transfer (EFT) or another automatic payment method designated by Hck Hot Chicken. Franchisees must also provide pre-authorized check forms or drafts to allow Hck Hot Chicken to draw these payments from the franchisee's bank account.
Franchisees are required to maintain a single bank account for these payments and must maintain any minimum balance in that account as Hck Hot Chicken may reasonably specify. The franchisee cannot alter or close this account without prior written approval from Hck Hot Chicken. Failure to implement the EFT system according to Hck Hot Chicken's instructions constitutes a material breach of the franchise agreement.
In addition to the bank account requirements, franchisees must maintain at least one credit card account in good standing with a minimum available credit line of $10,000.00. This credit card can be charged for any past due amounts owed to Hck Hot Chicken or an approved supplier if an EFT payment is unsuccessful. The EFT and credit card authorization forms are included in the Franchise Disclosure Document as Exhibit I.