factual

Who is responsible for administering the advertising cooperatives for Hck Hot Chicken, including determining contribution amounts?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

You may be required to participate in any local or regional advertising cooperative for HCK Hot Chicken Restaurants that is established. The area of each local and regional advertising cooperative will be defined by us, based on our assessment of the area. Franchisees in each cooperative will contribute an amount to the cooperative of up to two percent (2%) of monthly Gross Sales for each Restaurant that the franchisee owns that exists within the cooperative's area, which contribution may be applied toward the franchisee's Local Advertising Requirement. Each Restaurant that we or our affiliate owns that exists within the cooperative's area will contribute to the cooperative on the same basis as franchisees. Members of the cooperative will be responsible for administering the cooperative, including determining the amount of contributions from each member. We may require that each cooperative operate with governing documents, which will be available for review upon reasonable request from cooperative franchisees. Each cooperative must prepare annual unaudited financial statements,and such statements will be provided for review to each member of such cooperative. Cooperatives may not use advertising, marketing, or promotional plans or materials without our prior written consent. We reserve the right to form, change, dissolve, or merge any advertising cooperative formed in the future. If we elect to form such cooperatives, or if such cooperatives already exist near your territory, you will be required to participate in compliance with the provisions of the Brand Standards Manual, which we may periodically modify in our discretion.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING,COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–37)

What This Means (2025 FDD)

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the members of the advertising cooperatives are responsible for administering the cooperative, including determining the amount of contributions from each member. Hck Hot Chicken may require that each cooperative operate with governing documents, which will be available for review upon reasonable request from cooperative franchisees.

Each Hck Hot Chicken cooperative must prepare annual unaudited financial statements, which will be provided for review to each member of such cooperative. However, cooperatives may not use advertising, marketing, or promotional plans or materials without Hck Hot Chicken's prior written consent. Hck Hot Chicken reserves the right to form, change, dissolve, or merge any advertising cooperative formed in the future.

If Hck Hot Chicken elects to form such cooperatives, or if such cooperatives already exist near a franchisee's territory, the franchisee will be required to participate in compliance with the provisions of the Brand Standards Manual, which Hck Hot Chicken may periodically modify in its discretion. Franchisees in each cooperative will contribute an amount to the cooperative of up to two percent (2%) of monthly Gross Sales for each Restaurant that the franchisee owns that exists within the cooperative's area, which contribution may be applied toward the franchisee's Local Advertising Requirement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.