What section of the Hck Hot Chicken franchise agreement defines the 'Location'?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3.1 If "No Territorial Rights" is selected in Attachment A, the franchise and license and other rights granted in this Agreement are for the Location only at the specific numbered street address at which the Franchised Restaurant shall be physically located and Franchisee acknowledges the franchise and license granted to Franchisee under this Agreement is nonexclusive and it has no territorial protection under this Agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Section 2.3.1 of the franchise agreement defines the 'Location'. This section specifies that if "No Territorial Rights" is selected in Attachment A, the franchise rights are limited to the specific street address of the Franchised Restaurant.
This means that if a franchisee does not have territorial rights, their franchise is only for the physical location specified in the agreement. The franchisee acknowledges that the franchise is nonexclusive and they have no territorial protection under the agreement.
For a prospective Hck Hot Chicken franchisee, this is an important consideration. If they want exclusive rights to a certain territory, they need to ensure that an area is selected and described in Attachment A of the franchise agreement. Otherwise, Hck Hot Chicken could open another franchise nearby, which could impact the franchisee's business.