May a supplier be required to sign a supplier agreement with Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We will provide you with a list of our designated and approved suppliers in our Brand Standards Manual. If you want to use or sell a product or service that we have not yet evaluated, or if you want to purchase or lease a product or service from a supplier or provider that we have not yet approved (for products and services that require supplier approval), you must notify us and submit to us the information, specifications, and samples we request. We will use commercially reasonable efforts to notify you within 30 days after receiving all requested information and materials whether you are authorized to purchase or lease the product or service from that supplier or provider. We reserve the right to charge a fee to evaluate the proposed product, service, or supplier. We apply the following general criteria in approving a proposed supplier: (1) ability to purchase the product in bulk; (2) quality of services; (3) production and delivery capability; (4) proximity to HCK Hot Chicken Franchises to ensure timely deliveries of the product or services; (5) the dependability of the supplier; and (6) other factors. The supplier may also be required to sign a supplier agreement with us. We may periodically re-inspect approved suppliers' facilities and products and we reserve the right to revoke our approval of any supplier, product, or service that does not continue to meet our specifications. We will send written notice of any revocation of an approved supplier, product, or service. We do not provide material benefits to you based solely on your use of designated or approved sources. Neither we nor our affiliate are currently approved suppliers of any goods or services provided to franchisees. None of our officers own equity in an approved supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, a supplier may be required to sign a supplier agreement with Hck Hot Chicken. Specifically, when a franchisee wants to use a new product or purchase from a supplier not already approved by Hck Hot Chicken, the supplier may be required to sign an agreement with the company.
This requirement is part of Hck Hot Chicken's process for evaluating and approving new suppliers. The FDD outlines several criteria Hck Hot Chicken considers, including the supplier's ability to handle bulk purchases, the quality of their services, their production and delivery capabilities, their proximity to Hck Hot Chicken franchises, and their overall dependability. Requiring a supplier agreement allows Hck Hot Chicken to ensure that the supplier meets these standards and will continue to do so.
For a prospective Hck Hot Chicken franchisee, this means that if they wish to use a supplier not already on the approved list, they must first notify Hck Hot Chicken and provide the necessary information and samples. Hck Hot Chicken will then evaluate the supplier, and as part of that evaluation, the supplier may be required to enter into a formal agreement with Hck Hot Chicken. This process helps maintain consistency and quality across all Hck Hot Chicken franchise locations.
It is important to note that Hck Hot Chicken also reserves the right to re-inspect approved suppliers and revoke approval if they no longer meet the company's specifications. This ongoing monitoring and the potential requirement for supplier agreements are mechanisms Hck Hot Chicken uses to control the quality and consistency of products and services used in its franchise locations.