Under what circumstances can Hck Hot Chicken charge a franchisee's credit card?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Disclosure Document in Exhibit I). You are also required to complete the credit card authorization (in the form attached to this Franchise Disclosure Document in Exhibit I), which allows us to charge your credit card for any past due amounts in the event an EFT payment is unsuccessful. We can require an alternative payment method or payment frequency for any fees or amounts owed to us or our affiliates under the Franchise Agreement.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees are required to complete a credit card authorization form, which allows Hck Hot Chicken to charge the franchisee's credit card for any past due amounts if an Electronic Funds Transfer (EFT) payment is unsuccessful. This is a standard practice to ensure timely payments of fees and other amounts owed to Hck Hot Chicken or its affiliates under the Franchise Agreement.
Additionally, if a franchisee makes a payment to Hck Hot Chicken or its affiliates via credit card for any required fee, Hck Hot Chicken may charge a service fee of up to 4% of the total charge. This covers the costs Hck Hot Chicken incurs for processing credit card payments.
It is important for prospective Hck Hot Chicken franchisees to understand these payment terms and ensure they have sufficient funds available for EFT payments to avoid credit card charges for past due amounts. Franchisees should also factor in the potential 4% service charge when making payments via credit card. Reviewing the credit card authorization form and understanding all applicable fees is crucial for managing the financial obligations of the franchise.