Under what conditions might Hck Hot Chicken require franchisees to enter into a license agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to create proprietary software or technology that must be used by HCK Hot Chicken franchisees, in which case we may require that you enter into a license agreement with us and pay us reasonable initial and ongoing licensing, support and maintenance fees.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken reserves the right to create proprietary software or technology that franchisees must use. In such cases, Hck Hot Chicken may require franchisees to enter into a license agreement with them.
This license agreement would involve the franchisee paying initial and ongoing licensing, support, and maintenance fees to Hck Hot Chicken. The specific amounts for these fees are not detailed in this section, but they would be in addition to the monthly Technology Fee, which is currently $500 per month per Restaurant.
This clause gives Hck Hot Chicken the flexibility to develop its own technology and require franchisees to adopt it, ensuring consistency across the franchise system. However, it also means that franchisees could face additional costs for licensing, support, and maintenance of this proprietary technology, on top of the existing Technology Fee and any fees charged by third-party software providers that Hck Hot Chicken currently requires franchisees to use.