Does Hck Hot Chicken reserve the right to control network and internet traffic?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
to participate in Franchisor's gift and loyalty card program. At Franchisor's discretion, gift and loyalty cards will be made available by Franchisee for purchase and redemption at the Restaurant.
- 7.16 Online Ordering. Franchisee shall participate in customer online ordering and/or payment systems and programs which Franchisor may establish and modify from time to time.
- 7.17 Privacy. Franchisee agrees to comply with all applicable laws pertaining to the privacy of customer, employee, and transactional information ("Privacy Laws"). Franchisee also agrees to comply with Franchisor's standards and policies pertaining to Privacy Laws. If there is a conflict between Franchisor's standards and policies pertaining to Privacy Laws and actual applicable law, Franchisee will: (a) comply with the requirements of applicable law; (b) immediately give Franchisor written notice of said conflict; and (c) promptly and fully cooperate with Franchisor and Franchisor's counsel in determining the most effective way, if any, to meet Franchisor's standards and policies pertaining to Privacy Laws within the bounds of applicable law. Franchisee agrees not to publish, disseminate, implement, revise, or rescind a data privacy policy without Franchisor's prior written consent as to said policy.
SECTION 8. ADVERTISING
8.1 General Advertising Requirements. Franchisee shall only use and display approved advertising material provided, from time to time, by Franchisor and shall use and display all material in accordance with Franchisor's policies, standards, and specifications. Franchisee must obtain the prior written consent of Franchisor to use and/or display any advertising materials, including, without limitation, all print and electronic advertising, social media postings or listings, website postings or listings, newspaper and magazine advertisements, direct mailers, and mail coupons, not provided by Franchisor. Franchisee shall submit all such materials to Franchisor for approval and Franchisor shall grant or deny such approval within 15 days of receiving the materials.
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 maintains control over the franchisee's internet presence and online activities related to the brand. Specifically, Hck Hot Chicken requires participation in online ordering systems that they establish and modify. Franchisees must also comply with Hck Hot Chicken's standards and policies regarding customer, employee, and transactional data privacy. Franchisees cannot publish or revise data privacy policies without Hck Hot Chicken's prior written consent.
Furthermore, Hck Hot Chicken reserves significant rights regarding the franchisee's online identifiers. Upon termination of the franchise agreement, Hck Hot Chicken can direct the internet service provider or website operator to transfer the franchisee's online identifiers to Hck Hot Chicken or its designee. The FDD clarifies that franchisees cannot use Hck Hot Chicken's marks on the internet without prior consent from Hck Hot Chicken.
These stipulations mean that a Hck Hot Chicken franchisee must adhere to the franchisor's directives concerning online ordering platforms, data privacy, and brand representation on the internet. The franchisee's online presence is subject to Hck Hot Chicken's control, and they must seek approval for any independent online activities related to the brand. This level of control is common in franchise systems to maintain brand consistency and manage customer data effectively.
For a prospective franchisee, this indicates a need to fully understand Hck Hot Chicken's online policies and systems, as well as the implications for managing customer data and online marketing. It would be prudent to discuss the specifics of these online systems, the costs associated with them, and the extent of control Hck Hot Chicken exerts over the franchisee's internet presence during the due diligence process.