Is the right to use the Marks for a Hck Hot Chicken restaurant exclusive or non-exclusive?

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees are granted a non-exclusive right to use the system, including proprietary marks, for operating a Hck Hot Chicken restaurant. This right is granted through the Franchise Agreement and upon payment of continuing royalties. The use of these marks is specifically limited to the operation of a Hck Hot Chicken Restaurant and must be in accordance with the standards of the Hck Hot Chicken system.

This non-exclusive arrangement means that Hck Hot Chicken retains the right to license the same marks to other franchisees or even use them themselves in different capacities or locations. A prospective franchisee should understand that they will not have exclusive use of the Hck Hot Chicken trademarks within their market area, which is a fairly standard practice in franchising. This allows Hck Hot Chicken to expand its brand presence through multiple outlets and channels.

While franchisees must adhere to Hck Hot Chicken's rules and specifications when using the marks, Hck Hot Chicken also commits to indemnifying and defending franchisees against third-party claims of intellectual property infringement related to the use of the marks, provided the franchisee is operating in accordance with the Franchise Agreement. However, Hck Hot Chicken is not obligated to pursue infringing users of their marks but will take action they deem appropriate. Franchisees are required to notify Hck Hot Chicken within three days if they become aware of any unauthorized use of the marks.

It is also important to note that Hck Hot Chicken does not have a federal registration for their principal trademark. The USPTO issued a Final Office Action on April 3, 2025, questioning Hck Hot Chicken's right to register the mark. If Hck Hot Chicken is unable to overcome the Office Action, they will not be able to obtain a federal trademark registration. This could mean that if Hck Hot Chicken's right to use the trademark is challenged, franchisees may have to change to an alternative trademark, which may increase their expenses.