When will the term of the First Successor Franchise Agreement for Hck Hot Chicken commence?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Form and Manner of Exercising Successor Franchise Right.
The Successor FranchiseRight shall be exercised, if at all, strictly in the following manner:
3.3.1 Between six months and 12 months before the expiration of the Term, Franchisee shall notify Franchisor in writing ("Notice of Election") that it intends to exercise its Successor Franchise Right and no sooner than immediately after the expiration of any waiting period(s) by Applicable Law and no more than 30 days after Franchisee receives Franchisor's Franchise Disclosure Document, if applicable, and the execution copy of the applicable Successor Franchise Agreement, Franchisee shall execute and forward a copy of Successor Franchise Agreement with the renewal fee described in Section 3.2.2(a).
3.3.2 If Franchisee shall have exercised its Successor Franchise Right in accordance with Section 3.3 of this Agreement and satisfied all of the conditions contained in Section 3.4 of this Agreement, Franchisor shall execute the Successor Franchise Agreement, executed by Franchisee and at or prior to the expiration of the Term, deliver one fully executed copy thereof to Franchisee.
3.4 If Franchisee fails to perform any of the acts, or deliver any of the notices required pursuant to the provisions of Sections 3.3 or 3.4 of the Agreement, in a timely fashion, such failure shall be deemed an election by Franchisee not to exercise its Successor Franchise Right and shall automatically cause Franchisee's said Successor Franchise Right to lapse and expire.
3.5 Conditions Precedent to Entering into a Successor Franchise Agreement.
Franchisee's Successor Franchise Right is conditioned upon Franchisee's fulfillment of each and all of the following conditions precedent:
- 3.5.1 At the time Franchisee delivers its Notice of Election to Franchisor and at all times thereafter until the commencement of the applicable Successor Term, Franchisee shall have fully performed, in all material respects, all of its obligations under the Agreement, the HCK Hot Chicken Brand Standards Manual and all other agreements then in effect between Franchisee and Franchisor (or itsAffiliates).
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the commencement of the First Successor Franchise Agreement is tied to the expiration of the original franchise term. Specifically, if a franchisee properly exercises their Successor Franchise Right and meets all necessary conditions, Hck Hot Chicken will execute the Successor Franchise Agreement and deliver a fully executed copy to the franchisee at or prior to the expiration of the original term. This ensures a seamless transition from the original franchise agreement to the successor agreement, provided all obligations are met.
To exercise the Successor Franchise Right, the franchisee must notify Hck Hot Chicken in writing between six and twelve months before the expiration of the current term. This notification, called the "Notice of Election," indicates the franchisee's intention to renew. Following this, the franchisee must execute and forward a copy of the Successor Franchise Agreement, along with the renewal fee, no sooner than immediately after any waiting periods required by law and no more than 30 days after receiving Hck Hot Chicken's Franchise Disclosure Document and the execution copy of the Successor Franchise Agreement.
However, the commencement of the Successor Franchise Agreement is conditional. The franchisee must have fully performed all obligations under the existing Franchise Agreement, the HCK Hot Chicken Brand Standards Manual, and any other agreements with Hck Hot Chicken or its affiliates, in all material respects, from the time they submit the Notice of Election until the start of the Successor Term. Failure to meet these conditions or to deliver the required notices and documents in a timely manner will result in the franchisee's Successor Franchise Right lapsing.