Who is responsible for covering the costs associated with the qualification, training, and certification requirements for Hck Hot Chicken franchisees and their employees?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
urant Manager(s) and assistant Restaurant Manager(s) to attend the Initial Training Program.. Franchisor reserves the right to decertify and recertify any Restaurant Manager or Training Manager. Franchisor will provide certification for Franchisee's first Training Manager at no cost. Franchisor will also certify one Operating Principal and Director of Operations of Franchisee (including any Affiliates) at no cost. Franchisor reserves the right to charge its then-current fees (in addition to being reimbursed all out-of-pocket costs and expenses, including Franchisor's employees' Travel Expenses) for any other, additional, or subsequent certifications, re-certifications, or multiple certification attempts. All certification and training is subject to Franchisor's capacity and scheduling requirements.
- 6.6 Annual Convention. Franchisee, or if Franchisee is an Entity, its Operating Principal, or a major Owner acceptable to Franchisor, must attend Franchisor's annual convention, for which Franchisee must pay a registration fee, regardless of attendance. Franchisee shall be responsible for all of its attendee's Travel Expenses and Wages. However, Franchisor may preclude Franchisee from attending Franchisor's annual convention, while Franchisee is then in default of any agreement with Franchisor or if Franchisee has received two or more notices of Default in the prior twelve months, but Franchisee is still required to pay the convention registration fee.
- 6.7 Notice. If Franchisee believes Franchisor has failed to adequately provide any training or other preopening or opening services to Franchisee as provided in this Agreement, Franchisee will notify Franchisor in writing within 30 days following Franchisor's provision of such training or services. Without timely provision of such notice to Franchisor, Franchisee will be deemed to conclusively acknowledge that all training and pre-opening and opening services required to be provided to Franchisee were sufficient and satisfactory in Franchisee's judgment.
SECTION 7. HCK HOT CHICKEN BRAND STANDARDS, STANDARDS OF OPERATOR QUALITY, CLEANLINESS AND SERVICE
7.1 Compliance with Applicable Law. Franchisee shall operate the Franchised Restaurants as a clean, orderly, legal, and respectable place of business in accordance with Franchisor's business standards and merchandising policies and shall comply with all Applicable Laws. Franchisee shall not cause or allow any part of its Location or Premises to be used for any immoral or illegal purpose. Franchisee shall in all dealings with its customers, suppliers, and public officials adhere to high standards of honesty, integrity, fair dealing and ethical conduct and refrain from engaging in any action (or failing to take any action) which will cause
Franchisor to be in violation of any Applicable Law. Franchisee shall refrain from engaging in action (or failing to take any action), which in the sole opinion of Franchisor, causes or could cause harm to the Marks, the System and/or the HCK Hot Chicken brand. If Franchisee shall receive any notice, report, fine, test results or the like from the applicable state or local department of health (or other similar Governmental Authority), Franchisee shall promptly send a copy of the same to Franchisor. Franchisee shall correct any such deficiency noted within 10 days or such fewer number of days as required by the applicable Governmental Authority.
7.2 Operating Principal and Management Employees.
- 7.2.1 The Operating Principal shall be principally responsible for communicating and coordinating with Franchisor regarding business, operational and other ongoing matters concerning this Agreement and the Franchised Restaurant.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the franchisee is generally responsible for the costs associated with training and certification of themselves and their employees. However, Hck Hot Chicken will provide the initial certification for the franchisee's first Training Manager, as well as one Operating Principal and Director of Operations, at no cost.
However, if a Hck Hot Chicken franchisee (or its affiliates) owns three or more restaurants, the franchisee must employ a Training Manager. Otherwise, upon opening the fourth (or higher) restaurant, the franchisee must pay Hck Hot Chicken a non-refundable additional training fee of $5,000 before the start of initial training for the new restaurant. The franchisee will also need to cover the then-current fees for their Restaurant Manager(s) and assistant Restaurant Manager(s) to attend the Initial Training Program. Hck Hot Chicken retains the right to charge fees and be reimbursed for out-of-pocket costs, including travel expenses for their employees, for any additional or subsequent certifications, re-certifications, or multiple certification attempts beyond the initial ones provided at no cost.
The franchisee is also responsible for paying a registration fee and all travel expenses and wages for themselves or their Operating Principal (or major Owner) to attend Hck Hot Chicken's annual convention. Furthermore, if the franchisee's copy of the HCK Hot Chicken Brand Standards Manual is lost, destroyed, or significantly damaged, the franchisee must pay a $500 replacement fee to Hck Hot Chicken.
In addition, the franchisee is responsible for the costs of any terminals, software, hardware, or other components necessary to comply with credit card usage standards, such as EMV terminals. The franchisee is also required to pay Hck Hot Chicken's vendors their then-current monthly fee for obtaining software for each EMV terminal.