Under what circumstances is Hck Hot Chicken not liable for delays in the delivery of goods to the franchisee?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor (or the applicable Affiliate) shall not be liable to Franchisee for unavailability of, or delay in shipment or receipt of, merchandise because of temporary product shortages, order backlogs, production difficulties, delays, unavailability of transportation, fire, strikes, work stoppages, or other causes beyond the reasonable control of Franchisor (or the applicable Affiliate).
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the franchisor or its affiliates are not liable to the franchisee for delays in the shipment or receipt of merchandise under specific circumstances. These circumstances include temporary product shortages, order backlogs, production difficulties, delays, unavailability of transportation, fire, strikes, work stoppages, or other causes beyond the reasonable control of Hck Hot Chicken or its affiliates.
This means that if a Hck Hot Chicken franchisee experiences a delay in receiving necessary goods due to any of the listed events, they will not be able to hold the franchisor liable for any resulting losses or disruptions to their business. This is a fairly standard clause in franchise agreements, as it protects the franchisor from being held responsible for events outside of their direct control.
As a prospective franchisee, it's important to understand this clause and factor in the potential for such delays when planning your business operations. Consider maintaining a buffer stock of essential items to mitigate the impact of potential supply chain disruptions. It would be prudent to inquire with Hck Hot Chicken about their typical supply chain lead times and any historical instances of these types of delays to better assess the potential risk.