Do Hck Hot Chicken restaurants owned by the franchisor contribute to the advertising cooperative?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may be required to participate in any local or regional advertising cooperative for HCK Hot Chicken Restaurants that are established.
The area of each local and regional advertising cooperative will be defined by Franchisor, based on Franchisor's 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.
Each Restaurant that Franchisor owns that exists within the cooperative's area will contribute to the cooperative on the same basis as franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, if the franchisor owns restaurants within the area of a local advertising cooperative, those restaurants will contribute to the cooperative. The contribution will be on the same basis as Hck Hot Chicken franchisees.
Franchisees may be required to participate in any local or regional advertising cooperative that is established for Hck Hot Chicken restaurants. The area of each cooperative will be defined by Hck Hot Chicken. Franchisees in each cooperative will contribute up to two percent (2%) of monthly Gross Sales for each restaurant they own within the cooperative's area.
This means that Hck Hot Chicken company-owned stores are expected to support local advertising efforts alongside franchisees, ensuring a unified approach to marketing within a given region. A prospective franchisee should inquire about the specific criteria used to define cooperative areas and how the contribution percentage is determined, to fully understand the potential advertising expenses.