factual

What systems does Hck Hot Chicken require franchisees to maintain for non-cash payment methods?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

The term "credit card vendors" includes, among other things, companies that provide services for electronic payment, such as near field communication vendors (for example, "Apple Pay" and "Google Wallet").

  • 7.3.5 Franchisor requires that the Restaurant comply with "EMV" and may require that the Restaurant comply with other standards for credit card usage.

The Restaurant must have at least two EMV terminals.

Franchisee is required to pay Franchisor's vendors their then-current monthly fee for obtaining software for each EMV terminal.

Franchisor may require that Franchisee install additional payment terminals or automated teller machines for use with such credit cards.

Franchisee shall pay the costs of any terminals, software, hardware, or other components necessary to comply with these requirements, and Franchisor reserves the right to require that Franchisee pay any such costs to Franchisor.

  • 7.3.6 Franchisee shall participate in accordance with Franchisor's policies and specifications, including those set forth in the HCK Hot Chicken Brand Standards Manual, in all types of ordering systems, specified by Franchisor, including online and mobile application programs.

Franchisee will cooperate in all respects to implement, support, and maintain such systems, including providing Franchisor and its representatives with access to Franchisee's banking accounts.

4.6 EFT and Pre-Authorized Payments.

4.6.1 Franchisee, at Franchisee's sole cost and expense, shall instruct its bank to paythe amount of its Continuing Royalty, Brand Fund Contribution and other fees directly to Franchisor from Franchisee's account, by electronic funds transfer or such other automatic payment mechanism which Franchisor may designate ("EFT") and upon the terms and conditions set forth in the HCK Hot Chicken Brand Standards Manual, and promptly upon Franchisor's request, Franchisee shall execute or re-execute and deliver to Franchisor such pre-authorized check forms and other instruments or drafts required by Franchisor's bank, payable against Franchisee's bank account, to enable Franchisor to draw Franchisee's Continuing Royalty, Brand Fund Contributions and other sums payable under the terms of this Agreement. Franchisee must at all times during the term of this Agreement (including any renewal terms) maintain at least one credit card account in good standing and with a minimum available credit line of $10,000.00 and complete the credit card authorization form which allows Franchisor to charge the credit card for any past due amounts owed to Franchisor or an approved supplier in the event an EFT payment is unsuccessful.

  • 7.15 Gift and Loyalty Cards. Franchisee is obligated to participate in Franchisor's gift and loyalty card program. At Franchisor's discretion, gift and loyalty cards will be made available by Franchisee for purchase and redemption at the Restaurant.
  • 7.16 Online Ordering. Franchisee shall participate in customer online ordering and/or payment systems and programs which Franchisor may establish and modify from time to time.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)

What This Means (2025 FDD)

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees are required to comply with EMV standards and may be required to comply with other standards for credit card usage. Franchisees must have at least two EMV terminals and pay the franchisor's vendors their current monthly fee for the software for each terminal. Hck Hot Chicken may also require franchisees to install additional payment terminals or ATMs for use with credit cards, with the franchisee bearing the costs for terminals, software, hardware, or other necessary components. Hck Hot Chicken reserves the right to have franchisees pay these costs directly to them.

Franchisees must participate in all types of ordering systems specified by Hck Hot Chicken, including online and mobile application programs, according to the Hck Hot Chicken Brand Standards Manual. Franchisees must cooperate to implement, support, and maintain these systems, including providing Hck Hot Chicken and its representatives with access to their banking accounts. Franchisees are also obligated to participate in Hck Hot Chicken's gift and loyalty card program, making these cards available for purchase and redemption at the restaurant. Additionally, franchisees must participate in customer online ordering and/or payment systems and programs that Hck Hot Chicken establishes and modifies.

Furthermore, franchisees are required to instruct their bank to pay the Continuing Royalty, Brand Fund Contribution, and other fees directly to Hck Hot Chicken from the franchisee's account via electronic funds transfer (EFT) or another automatic payment mechanism designated by Hck Hot Chicken. Franchisees must maintain at least one credit card account in good standing with a minimum available credit line of $10,000 and complete a credit card authorization form allowing Hck Hot Chicken to charge the credit card for any past due amounts if an EFT payment is unsuccessful. Franchisees must also maintain a single bank account for such payments and maintain the minimum balance in the account that Hck Hot Chicken may reasonably specify.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.