Under what circumstances can Hck Hot Chicken modify or increase the monthly Technology Fee?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right to: (i) change or add approved suppliers of these services at any time, in Franchisor's sole discretion; (ii) enter into a master license agreement with any software or technology supplier and sublicense the software or technology to Franchisee, in which case Franchisor may charge Franchisee for all amounts that Franchisor must pay to the licensor based on Franchisee's use of the software or technology; and (iii) create proprietary software or technology that must be used by HCK Hot Chicken franchisees, in which case Franchisor may require that Franchisee enter into a license agreement with Franchisor and pay Franchisor reasonable initial and ongoing licensing, support and maintenance fees; and (iv) modify or increase the monthly Technology Fee to account for changes, additions and modifications to required hardware and software and for licensing and maintenance costs change the software and technology that must be used by franchisees at any time.
There is no limitation on the frequency and cost of Franchisee's obligation to maintain, update or upgrade its hardware or software.
The Technology Fee is uniform and non-refundable under any circumstances, and may be adjusted by Franchisor upon 30 days' written notice to you.
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 can modify or increase the monthly Technology Fee to account for changes, additions, and modifications to required hardware and software, as well as for licensing and maintenance costs. Hck Hot Chicken also reserves the right to change the software and technology that franchisees must use at any time. Franchisees will receive 30 days' written notice before any adjustment to the Technology Fee.
This means that as a franchisee, you could see your monthly Technology Fee increase if Hck Hot Chicken decides to implement new software, hardware, or technologies, or if licensing or maintenance costs change. The FDD does not limit the frequency or cost of required hardware or software updates, meaning these fees could change multiple times during the year.
Franchisees should be aware that these technology-related costs are in addition to any amounts they may be required to pay directly to third-party providers, suppliers, or vendors for the computer and technology system operated in their franchised restaurant. This could potentially impact the profitability of the franchise if technology costs increase significantly. It is important to budget for potential increases in the Technology Fee and to discuss with Hck Hot Chicken what foreseeable technology changes are planned for the future.