HCK Hot Chicken Restaurant Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$205,500 - $688,000
Franchise Fee
$40,000
Min Cash Required
$30,000
Total US Locations
7
Business Summary
HCK Hot Chicken restaurants serve Nashville-style hot chicken tenders and sandwiches with custom-ordered spices, along with other food and drink items, in a fun, fast-casual restaurant environment. HCK Hot Chicken offers single and multi-unit franchises to operate these restaurants, which can be in traditional or non-traditional venues.
Corporate History
Hot Chikn Kitchn LLC was organized in Florida on November 12, 2021. It conducts business under its corporate name and the trade name HCK Hot Chicken. The company began offering franchises under the trade name Hot Chikn Kitchn in December 2021, and in March 2023, it started using the trade name HCK Hot Chicken. The franchise system is based on an affiliate's business model, MAS2, LLC, which has operated a restaurant since November 2020. Other affiliates also opened HCK restaurants in May 2022 and December 2022.
Financial Overview
Investment Range
$205,500 - $688,000
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$30,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$91,000
Equipment Costs (High)
$478,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
HCK Hot Chicken's financial statements show net losses for both 2023 and 2022, and the company has negative retained earnings. The franchisor's financial condition, as noted in the FDD's special risks section, raises questions about its ability to provide services and support to franchisees.
Financing Details
HCK Hot Chicken does not offer any direct or indirect financing to franchisees, nor does it guarantee any notes, leases, or other obligations. Franchisees will need to secure all their own funding.
Performance Metrics
Total US Locations
7
Franchised Units
5
Corporate Units
2
Avg Square Footage
1,600
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
HCK Hot Chicken has no litigation history to report.
Bankruptcy History
HCK Hot Chicken has no bankruptcy history to report for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, HCK Hot Chicken franchisees must meet several conditions. They must have fully complied with all obligations of their existing Franchise Agreement and other agreements with the franchisor. They must also undertake remodeling of their restaurant to meet HCK Hot Chicken's then-current standards. Franchisees cannot have accumulated three or more material defaults of their Franchise Agreement within any 36-month period. Additionally, they must satisfy HCK Hot Chicken's current training requirements and pay a renewal fee equal to 50% of the then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
HCK Hot Chicken provides pre-opening assistance that includes access to its Brand Standards Manual, review and acceptance of proposed restaurant sites and lease agreements, and basic specifications for restaurant design and layout. Franchisees must use a designated architect for preliminary floorplans and for reviewing construction documents. HCK Hot Chicken also provides lists of approved equipment and supplies vendors. Initial training is provided tuition-free for up to three management personnel, including the Operating Principal and Director of Operations, along with an extra practice week and on-site grand opening assistance for up to two weeks. After opening, HCK Hot Chicken informs franchisees of mandatory operational standards, offers advice based on reports and inspections, approves advertising materials, and provides certification programs. Additional training and assistance are available, though some may incur extra fees. HCK Hot Chicken also maintains a Brand Fund for system-wide marketing efforts and may hold conferences.
Initial Training Hours
38
Training Location
Woodbridge, VA, or online
Ongoing Support
HCK Hot Chicken provides ongoing support by informing franchisees of mandatory operational standards and procedures. It also offers advice based on regular reports or inspections and approves marketing materials. The franchisor provides certification programs for managers and additional training for new personnel or as refresher courses, though some of these may incur additional fees. HCK Hot Chicken also maintains a Brand Fund for system-wide marketing efforts and may hold periodic national or regional conferences for franchisees.
Franchise Requirements
Ideal Candidate Profile
HCK Hot Chicken seeks individuals or entities where the operating principal will directly supervise the restaurant's operations. The operating principal is expected to dedicate 100% of their time and best efforts solely to the restaurant(s) operation, hold at least a 10% equity or voting interest in the franchisee entity, and meet HCK Hot Chicken's educational, experience, and financial criteria. This individual must be acceptable to HCK Hot Chicken and successfully complete all required training. For multi-unit franchisees, a Director of Operations is also required to oversee all restaurants, and this role may be combined with the Operating Principal depending on the number of restaurants. Franchisee owners and their spouses must personally guarantee financial obligations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
Non-Exclusive
Territory Size Requirements
HCK Hot Chicken territories are typically defined as a 1 to 3-mile radius around the restaurant. For locations in major metropolitan downtown areas or central business districts, the territory may be smaller, ranging from approximately two blocks to 1 mile. The specific size can vary based on location and demographics. Franchisees operating Non-Traditional Restaurants might not receive a defined territory, with rights limited to the physical site of the restaurant.
Staffing Notes
HCK Hot Chicken requires franchisees who are individuals to directly supervise their restaurant. For entity franchisees, an Operating Principal, holding at least 10% equity, must be designated and devote full-time efforts to the restaurant's operations, meeting the franchisor's criteria. For multiple restaurants, a Director of Operations is required to oversee all locations, who may also be the Operating Principal. Each restaurant must have at least two managers for the first 30 days of operation (or one manager if it's a subsequent restaurant in the same area), and at least one manager thereafter. All personnel attending training must have successfully completed the ServSafe Manager program, and restaurants must have at least one certified Restaurant Manager. A certified Training Manager is required if a franchisee owns three or more restaurants.