What section of the agreement outlines the Hck Hot Chicken Brand Fund Contribution?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
alty is an ongoing payment that allows Franchisee to use the Marks and the other intellectual property of the System and that pays for Franchisor's ongoing support and assistance.
- 4.3 Brand Fund Contribution. Franchisee shall pay to Franchisor each Week during the Term, as provided in Section 4.5, a Brand Fund contribution equal to two percent (2%) of Franchisee's Gross Sales during the preceding Week ("Brand Fund Contribution"). Franchisor reserves the right to increase this fee to up to four percent (4%) of Franchisee's Gross Sales when 50 Restaurants are operating. Franchisor shall contribute the Brand Fund Contribution to the Brand Fund to be administered in the manner provided in Section 8.3 of this Agreement (the "Brand Fund").
- 4.4 Technology Fee.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Section 4.3 of the franchise agreement details the Brand Fund Contribution. Franchisees are required to pay a Brand Fund contribution equal to two percent (2%) of their weekly Gross Sales, which is remitted to the franchisor each week.
The franchisor retains the right to increase this contribution up to four percent (4%) of Gross Sales once 50 Hck Hot Chicken restaurants are operational. These contributions are allocated to the Brand Fund, which is managed as described in Section 8.3 of the agreement.
Section 8.3.1 further clarifies that the Brand Fund Contribution, as outlined in Section 4.2 of the agreement, is applied to the Brand Fund. The Brand Fund is used by Hck Hot Chicken for advertising, public relations, and promotional campaigns at the national, regional, or local level. These efforts are intended to promote and enhance the image and patronage of both franchised and company-owned Hck Hot Chicken restaurants.