Does Hck Hot Chicken reserve the right to establish a local or regional advertising cooperative?

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken retains the right to establish local or regional advertising cooperatives. If such a cooperative is formed, the contribution amount will be determined by the cooperative members, but it will not exceed 2% of Gross Sales. Each Hck Hot Chicken franchisee will have one vote for each Hck Hot Chicken Restaurant they operate within the designated market. As of the issuance date of the Franchise Disclosure Document, no local or regional advertising cooperatives have been established.

This means that as a franchisee, you may be required to participate in a local or regional advertising cooperative in the future. While the contribution amount is capped at 2% of Gross Sales, this is an additional expense that you should factor into your financial planning. The cooperative gives franchisees a voice in local advertising strategies, with voting rights tied to the number of restaurants they operate.

It's important to note that while Hck Hot Chicken reserves the right to establish these cooperatives, they have not done so as of the FDD's issuance date. Prospective franchisees should inquire about Hck Hot Chicken's future plans regarding advertising cooperatives and how these cooperatives will be managed to ensure transparency and effectiveness.