Will Hck Hot Chicken unreasonably withhold consent to an assignment?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise expressly provided herein to the contrary, any consent, acceptance, approval or authorization of Franchisor which Franchisee may be required to obtain hereunder may be given or withheld by Franchisor in its sole discretion, and on any occasion where Franchisor is required or permitted hereunder to make any judgment, determination or use its discretion, including any decision as to whether any condition or circumstance meets Franchisor's standards or satisfaction, Franchisor may do so in its sole subjective judgment and discretion.
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 retains considerable discretion regarding approvals. Specifically, any consent or approval required from Hck Hot Chicken can be withheld at their "sole discretion." Furthermore, when Hck Hot Chicken is required or permitted to make a judgment, determination, or use its discretion, including assessing whether a condition meets their standards, they may do so using their "sole subjective judgment and discretion."
This high level of discretion means that Hck Hot Chicken has broad authority when evaluating a potential assignment. A prospective franchisee should be aware that Hck Hot Chicken is not obligated to act in a way that an outside party would consider reasonable. Instead, Hck Hot Chicken can make decisions based on its own subjective criteria and is not required to explain or justify its decisions.
This level of franchisor control is not uncommon in franchising, as franchisors seek to maintain brand standards and protect their systems. However, it places a significant burden on the franchisee to ensure they meet all of Hck Hot Chicken's requirements and expectations, which may not always be clearly defined or predictable. A prospective franchisee should carefully consider this aspect and discuss it with existing franchisees to understand how Hck Hot Chicken exercises its discretion in practice.