Can Hck Hot Chicken unilaterally modify the terms of the Franchise Agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Miscellaneous.
This Agreement may not be changed or modified except in a writing signed by all of the parties hereto.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same document.
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
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- HCK HOT CHICKEN NON-TRADITIONAL RESTAURANT STANDARDS.The following is hereby added as a new Section 7.18 to the Franchise Agreement:
"7.18 Non-Traditional Restaurant Acknowledgements.
Franchisee acknowledges that the signs, equipment configuration, menu, products, services, size, specifications, and appearance of the Non-Traditional Restaurant operated pursuant to this Agreement may significantly differ from that of a Traditional Restaurant and will be subject to alternative standards and specifications developed and made available by Franchisor.
Changes in the standards, specifications, and procedures applicable to the operation of the Non- Traditional Restaurant and related common areas may become necessary and desirable from time to time, and Franchisee agrees to accept and comply with such modifications and revisions.
The adoption of such standards shall be solely at the discretion of Franchisor."
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, the Franchise Agreement cannot be unilaterally changed or modified. Any changes or modifications require a written agreement signed by all parties involved. This protects the franchisee by ensuring that Hck Hot Chicken cannot arbitrarily alter the terms of the agreement to the detriment of the franchisee's investment and business operation. This requirement for mutual written consent is a standard practice in franchising, aimed at maintaining a fair and predictable business relationship.
However, in the case of a Non-Traditional Restaurant location, Hck Hot Chicken retains the discretion to modify standards, specifications, and procedures applicable to the operation of the Non-Traditional Restaurant and related common areas. The franchisee must accept and comply with such modifications and revisions, and the adoption of these standards is solely at Hck Hot Chicken's discretion. This clause gives Hck Hot Chicken more flexibility to adapt the non-traditional restaurant to its specific environment, but it also means the franchisee has less control over certain aspects of the business.
Prospective franchisees should carefully consider the implications of this clause, especially if they are considering a non-traditional location. While the core Franchise Agreement requires mutual consent for modifications, the standards and specifications for non-traditional locations can be changed at Hck Hot Chicken's discretion. Franchisees should seek clarification from Hck Hot Chicken regarding the types of changes that might be implemented and how these changes could affect their business operations and profitability.