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B65/100FDD 2024

HCK Hot Chicken — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial disclosure (avg revenue and net income not disclosed) — impossible to validate ROI claims
  2. 02HIGHGoing Concern = False — suggests potential financial instability or accounting issues at franchisor level
  3. 03MEDOnly 7 units system-wide — extremely small franchise with limited track record and survival data
  4. 04MINOR150% YoY unit growth from 7 units is mathematically trivial (likely added only ~3-4 units) — growth metric is misleading
  5. 05MINORWide investment range ($205,500–$688,000) indicates high variability and unclear cost structure
  6. 06MEDNo disclosed average unit volumes or profitability — unable to assess if franchise model is economically viable

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.