Under the Hck Hot Chicken franchise agreement, what constitutes a cross-default?

Based on the 2025 Hck Hot Chicken Franchise Disclosure Document, a cross-default occurs when a franchisee defaults under any agreement with the franchisor or its affiliates. According to section 7.14.4, if a franchisee defaults on the franchise agreement or any other agreement with Hck Hot Chicken or its affiliates, Hck Hot Chicken has the right to disable or terminate the franchisee's access to the Intranet. This action can be taken in addition to any other rights and remedies available to Hck Hot Chicken.

In the event that Hck Hot Chicken disables the franchisee's access to the Intranet due to a default, they are only required to provide the franchisee with a paper copy of the Hck Hot Chicken Brand Standards Manual and any updates, if they haven't already been provided, unless the franchisee is not otherwise entitled to the manual. This means that a default under one agreement can trigger consequences under another, specifically the franchise agreement, by limiting access to essential operational resources.

This clause is significant for prospective Hck Hot Chicken franchisees because it broadens the scope of what constitutes a default with consequences. It's not limited to just the franchise agreement itself, but extends to any other agreements the franchisee might have with the franchisor or its affiliates. Franchisees should be aware of all their obligations under any agreements with Hck Hot Chicken to avoid triggering a cross-default and the potential loss of access to the Intranet, which appears to be a crucial tool for restaurant operations, as indicated by the requirement to use it for communication and potentially for ordering goods and products.