Can Hck Hot Chicken subsequently disapprove of the Operating Principal's qualifications or performance?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
.2 Franchisee shall notify Franchisor in writing at least ten days prior to employing the Operating Principal setting forth in reasonable detail all information reasonably requested by Franchisor. Franchisor's acceptance of the Operating Principal shall not constitute Franchisor's endorsement of such individual or a guarantee by Franchisor that such individual will perform adequately for Franchisee or its Affiliates, nor shall Franchisor be estopped from subsequently disapproving or otherwise challenging such person's qualifications or performance.
- 7.2.3 Franchisee shall ensure that the operation of the Franchised Restaurant is always under the direct control of the Operating Principal or a Restaurant Manager. At all times that the Franchised Restaurant is open and at all times which pre-opening or post-closing activities are being undertaken at the Franchised Restaurant, the Franchised Restaurant shall be managed by a person that has successfully completed training (and if required, a person that is certified, by Franchisor in its discretion, for the performance of such responsibilities) and has successfully completed the ServSafe course and such other courses and training as may be specified by Franchisor and/or required by Applicable Law. Each such Restaurant Manager shall be
solely dedicated to the operation of the Restaurant to which the person is assigned.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken's acceptance of an Operating Principal does not prevent them from later disapproving or challenging that person's qualifications or performance. The franchisee is required to notify Hck Hot Chicken in writing at least ten days before employing an Operating Principal, providing all information requested by Hck Hot Chicken.
If the Operating Principal can no longer serve or doesn't qualify, the franchisee must inform Hck Hot Chicken. The franchisee then has 30 days to designate a replacement who meets Hck Hot Chicken's current requirements, provide the necessary information about the new Operating Principal, ensure they undergo required training at the franchisee's expense, and obtain Hck Hot Chicken's written acceptance.
This means that even after initial approval, Hck Hot Chicken retains the right to reassess and potentially reject an Operating Principal. This could be due to changes in Hck Hot Chicken's standards, the Operating Principal's performance, or other factors. The franchisee bears the responsibility and cost of finding and training a replacement acceptable to Hck Hot Chicken if the initial Operating Principal is later disapproved.