Under what circumstances may a Hck Hot Chicken franchisee be precluded from attending the annual convention?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee, or if Franchisee is an Entity, its Operating Principal, or a major Owner acceptable to Franchisor, must attend Franchisor's annual convention, for which Franchisee must pay a registration fee, regardless of attendance.
Franchisee shall be responsible for all of its attendee's Travel Expenses and Wages.
However, Franchisor may preclude Franchisee from attending Franchisor's annual convention, while Franchisee is then in default of any agreement with Franchisor or if Franchisee has received two or more notices of Default in the prior twelve months, but Franchisee is still required to pay the convention registration fee.
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 may be prohibited from attending the annual convention under specific circumstances. Even if attendance is precluded, the franchisee is still required to pay the convention registration fee.
The franchisee can be barred from attending the annual convention if they are in default of any agreement with Hck Hot Chicken. This means if the franchisee has failed to meet their obligations under the franchise agreement or any other agreement with the franchisor, they may not be allowed to attend the convention.
Additionally, Hck Hot Chicken may preclude a franchisee from attending the annual convention if the franchisee has received two or more notices of default in the prior twelve months. This indicates a pattern of non-compliance, even if the franchisee is not currently in default at the time of the convention. However, even if the franchisee is barred from attending due to default or multiple default notices, they are still obligated to pay the convention registration fee.