What requirements must a supplier designated by Hck Hot Chicken meet regarding insurance, indemnification, and non-disclosure?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ucts that Franchisor designates only from Franchisor or Suppliers it designates, including new equipment for all items that impact food production and the guest experience, and large equipment and small wares. Each such Supplier designated by Franchisor must comply with Franchisor's usual and customary requirements regarding insurance, indemnification, and non-disclosure, and shall have demonstrated to the reasonable satisfaction of Franchisor: (a) its ability to supply a Non-Proprietary Product meeting the specifications of Franchisor, which may include specifications as to brand name, model, contents, manner of preparation, ingredients, quality, freshness and compliance with governmental standards and regulations;
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, any supplier designated by Hck Hot Chicken must adhere to the franchisor's standard requirements for insurance, indemnification, and non-disclosure. Additionally, the supplier must demonstrate to Hck Hot Chicken's satisfaction its ability to consistently provide products that meet the franchisor's specifications. These specifications may include brand name, model, contents, preparation methods, ingredients, quality, freshness, and compliance with all relevant government standards and regulations.
Furthermore, the designated supplier must prove its reliability in terms of delivery and maintaining consistent product or service quality. The supplier must also meet any other requirements deemed necessary by Hck Hot Chicken to protect the best interests of the Hck Hot Chicken system.
In practice, this means that if a franchisee is required to purchase certain non-proprietary products from a designated supplier, that supplier has already agreed to Hck Hot Chicken's insurance, indemnification, and non-disclosure terms. This protects Hck Hot Chicken from liability and ensures consistent quality and standards across all franchise locations. A prospective franchisee should confirm what these 'usual and customary requirements' are during their due diligence.