Can Hck Hot Chicken terminate the Area Development Agreement without cause?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| B. AREA DEVELOPMENT AGREEMENT | |||||
|---|---|---|---|---|---|
| Provision | Section in Area Development Agreement | Summary | |||
| d. Termination by you | None | Not applicable. | |||
| e. Termination by Us | None | Not applicable. | |||
| without cause | |||||
| f. Termination by Us with cause | Section 9.1 | We can terminate if you or any of your affiliates materially default under the Area Development Agreement, an individual Franchise Agreement, or any other agreement with us. | |||
| g. "Cause" defined - defaults which can be cured | Section 9.1 | You have ten days to cure non-payment of fees and 30 days to cure any other default; provided that in the case of a breach or default in the performance of your obligations und |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–51)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken cannot terminate the Area Development Agreement without cause. The table within Item 17 outlines various provisions related to the Area Development Agreement, including termination conditions.
Specifically, under the section "Termination by Us without cause," the summary states "Not applicable," indicating that Hck Hot Chicken does not have the right to terminate the Area Development Agreement without a specified reason or justification.
However, Hck Hot Chicken can terminate the agreement with cause if the franchisee or any of their affiliates materially default under the Area Development Agreement, an individual Franchise Agreement, or any other agreement with them. In case of defaults that can be cured, the franchisee has ten days to cure non-payment of fees and 30 days to cure any other default.