Under what circumstances may Hck Hot Chicken disapprove a proposed supplier?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Section shall require Franchisor to approve any Supplier, and without limiting Franchisor's right to approve or disapprove a Supplier in its discretion, Franchisee acknowledges that it is generally disadvantageous to the system from a cost and service basis to have more than one Supplier in any given market area and that among the other factors Franchisor may consider in deciding whether to approve a proposed Supplier, it may consider the effect that such approval may have on the ability of Franchisor and its Franchisees to obtain the lowest distribution costs and on the quality and uniformity of products offered system-wide.
Without limiting the foregoing, Franchisor may disapprove a proposed Supplier, if in Franchisor's opinion, the approval of the proposed Supplier would disrupt or adversely impact Franchisor's national or regional distributional arrangements.
Franchisor may also determine that certain Non-Proprietary Products (e.g. beverages) shall be limited to a designated brand or brands set by Franchisor which brand(s) it may change 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, Hck Hot Chicken has the discretion to disapprove a proposed supplier for several reasons. Hck Hot Chicken is not required to approve any supplier. Hck Hot Chicken may consider the effect that approving a proposed supplier may have on the ability of Hck Hot Chicken and its franchisees to obtain the lowest distribution costs and on the quality and uniformity of products offered system-wide.
Specifically, Hck Hot Chicken may disapprove a supplier if, in their opinion, the approval would disrupt or adversely impact Hck Hot Chicken's national or regional distributional arrangements. Additionally, Hck Hot Chicken may determine that certain non-proprietary products, such as beverages, are limited to a designated brand or brands set by Hck Hot Chicken, which they may change from time to time.
In order to gain approval, a supplier must meet Hck Hot Chicken's requirements regarding insurance, indemnification, and non-disclosure. The supplier must also demonstrate the ability to supply non-proprietary products that meet Hck Hot Chicken's specifications, including brand name, model, contents, preparation, ingredients, quality, freshness, and compliance with governmental standards. The supplier must also be reliable with respect to delivery and consistent product quality and meet other requirements determined by Hck Hot Chicken to be in the best interest of the system.