When will the term of the Second Successor Franchise Agreement for Hck Hot Chicken commence?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2.1 Subject to the conditions contained in Section 3.4 of this Agreement and Franchisee's compliance with Section 3.3 of this Agreement, and provided that Franchisor is then currently offering franchises in the same state in which the Franchisee's Restaurant is located, at the expiration of the Term hereof, Franchisee shall have the right (the "Successor Franchise Right") to enter into a new franchise agreement in the form then generally being offered to prospective franchisees of the System (the "First Successor Franchise Agreement") for a ten year period (the "First Successor Term"), which Successor Franchise Agreement shall likewise grant Franchisee the right to enter into one additional franchise agreement at the end of the First Successor Term, in the form then generally being offered to prospective franchisees of the System (the "Second Successor Franchise Agreement") for a ten year period (the "Second Successor Term"). Franchisee acknowledges that the terms, including Continuing Royalty and Brand Fund Contribution payable, during the First Successor Term and SecondSuccessor Term shall be as then generally applicable to new franchisees granted at the time and maydiffer from those contained in 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, a franchisee has the right to enter into a Second Successor Franchise Agreement for a ten-year period, also known as the Second Successor Term. This right is granted at the expiration of the First Successor Term, assuming the franchisee meets certain conditions. These conditions include compliance with Section 3.3 of the agreement and other stipulations outlined in Section 3.4. The franchisor must also be offering franchises in the same state where the franchisee's restaurant is located at the time of renewal.
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 intent to renew. Following any waiting periods required by law and within 30 days of receiving the Franchise Disclosure Document and the Successor Franchise Agreement, the franchisee must execute and return the agreement with the renewal fee.
The commencement of the Second Successor Term is contingent upon the franchisee fulfilling all obligations under the existing agreements and maintaining good standing with Hck Hot Chicken. This includes adhering to the Hck Hot Chicken Brand Standards Manual and all other agreements. Failure to meet these conditions or to provide timely notices will result in the lapse of the Successor Franchise Right. The terms of the Second Successor Franchise Agreement, including royalty and brand fund contributions, will be those generally applicable to new franchisees at the time of renewal, which may differ from the original agreement.