DoorDash
under a name other than the “HCK Hot Chicken” Marks and are prepared at your Restaurant and made available for delivery to customers through third-party delivery services such as DoorDash, UberEats, G
From the filings
+80% units YoYHQ-led decisions
HCK Hot Chicken
Quick service restaurantSoftware purchasing decisions at HCK Hot Chicken appear to flow through CEO and Co-Founder Michael Sarago and Chief Culinary Officer/COO Frederic Gilmore, the only executives listed in the 2025 FDD. The brand does not disclose any mandated or recommended technology systems in its current disclosure document. With 10 total units—9 franchised and 1 company-owned—and 80% year-over-year unit growth, the addressable market is small but expanding rapidly for vendors who engage early.
For software vendors selling into US franchise brands.
Live signals
Total units
10
9 franchised
Unit growth YoY
+80%
vs prior filing
AUV
—
Item 19, 2025
Royalty
6%
of gross sales
Ad fund
2%
national + local
Initial fee
$40K
per unit
Investment range
$216K–$1.24M
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Non-compete
2 years
from the filing
Item 19
No claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
8%of gross sales (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
Grubhub
than the “HCK Hot Chicken” Marks and are prepared at your Restaurant and made available for delivery to customers through third-party delivery services such as DoorDash, UberEats, GrubHub, and similar
Uber Eats
ame other than the “HCK Hot Chicken” Marks and are prepared at your Restaurant and made available for delivery to customers through third-party delivery services such as DoorDash, UberEats, GrubHub, a
Franchisor behaviours
What the franchisor requires
28 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 3 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
Franchisee shall at all times provide Franchisor with all passwords, access keys and other security devices or systems as necessary to permit Franchisor to access the Information Systems and obtain the data Franchisor is permitted to obtain.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within 90 days following the end of each calendar year, Franchisee shall submit to Franchisor an unaudited financial statement prepared in accordance with generally accepted accounting principles, and in such form and manner prescribed by Franchisor, which shall be certified by Franchisee to be accurate and complete.
How the franchisor buys
Is there a franchisee advisory council, association or committee?
YesFranchise agreement
Franchisor may form, an advisory council (“Council”) to advise Franchisor and provide input on virtually all advertising materials and promotions.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor may also determine that certain Non-Proprietary Products (e.g. beverages) shall be limited to a designated brand or brands set by Franchisor which brand(s) it may change from time to time.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
As of our last fiscal year ending December 31, 2024, we derived $105,175 in rebates from food and beverage distributors on franchisee purchases representing 14.65% of our total revenue of $717,740 in 2024.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
70Item 8
We estimate that approximately 70 to 95% of purchases required to open your HCK Hot Chicken Restaurant and 70 to 95% of purchases required to operate your HCK Hot Chicken Restaurant will be from us or from other
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We reserve the right to charge a fee to evaluate the proposed product, service, or supplier.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
if you want to purchase or lease a product or service from a supplier or provider that we have not yet approved (for products and services that require supplier approval), you must notify us and submit to us the information, specifications, and samples we request.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Franchisee acknowledges that all telephone numbers, facsimile numbers, social media websites, Internet addresses and email addresses (collectively “Identifiers”) used in the operation of Franchisee’s Restaurant constitute Franchisor’s assets, and upon termination or expiration of this Agreement, Franchisee will take…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee shall adhere to all PCI (Payment Card Industry), CISP (Cardholder Information Security Program) and SDP (Site Data Protection) compliance specifications, as amended.
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
participation in surveys and mystery shopper programs
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor’s authorized representatives shall have the right, from time to time, to enter upon the entire premises of the Franchised Restaurant during business hours, to examine same, conferring with Franchisee’s employees, inspecting and checking operations, food, beverages, furnishings, interior and exterior decor…
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor shall have the right to modify the HCK Hot Chicken Brand Standards Manual at any time and from time to time
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We must accept the site before you enter into a lease.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee may not independently market its Franchised Restaurant or discuss the Franchised Restaurant, Franchisor, or Franchisor’s Affiliates through the Internet, social media, blogs, or crowdfunding campaigns, or use any domain name, address, locator, link, metatag, or search technique with words or symbols…
Is a minimum grand opening advertising spend required?
YesItem 7
You must pay us $20,000 to conduct a grand opening advertising campaign on your behalf.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Franchisee is obligated to participate in Franchisor’s gift and loyalty card program.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must use our designated supplier for installation, support and hosting of the computer system and software.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must use the computer hardware and software, including the point-of-sale system that we periodically designate to operate your HCK Hot Chicken Franchise.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 8
You must use our designated merchant services provider for debit and credit cards.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We currently require you to pay fees and other amounts due to us or our affiliates via EFT or other similar means.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
You must have at least two managers at your first Restaurant in a new Development Area for at least the first 30 days of operation, and you must have a minimum of two managers for subsequent Restaurants in the same Development Area for at least the first 30 days of operation.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
Franchisee shall cause all employees, while working in the Franchised Restaurant, to: (i) wear uniforms of such color, design, and other specifications as Franchisor may designate from time to time, and (ii) present a neat and clean appearance.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
You must use the computer hardware and software, including the point-of-sale system that we periodically designate to operate your HCK Hot Chicken Franchise.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 8
We will install an application on your POS system that allows us to view and download your sales and product mix information.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 8
You must use the computer hardware and software, including the point-of-sale system that we periodically designate to operate your HCK Hot Chicken Franchise.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisee must pay Franchisor’s then- current training fees and reimburse Franchisor for all Travel Expenses and Wages, and other expenses, incurred by Franchisor in connection with such additional training.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Franchisee, or if Franchisee is an Entity, its Operating Principal, or a major Owner acceptable to Franchisor, must attend Franchisor’s annual convention, for which Franchisee must pay a registration fee, regardless of attendance.
The filing answers no to 3 questions
- Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Franchise agreement
- Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
- Must the franchisee participate in a regional advertising cooperative when one exists?
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
OwnerCEOPresidentPrincipal
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.
- 97.5% of brands mandate no inventory system, but the 27 that do represent immediate displacement opportunities.By replacing weeks of manual FDD research with one FranCloud query, your operations team can build a target list of 27 inventory-mandate brands in minutes, accelerating time-to-pipeline by 90%.
The vendor opportunity at HCK Hot Chicken
HCK Hot Chicken is a quick-service restaurant brand headquartered in Virginia. According to its 2025 Franchise Disclosure Document, the system consists of 10 total units—9 franchised and 1 company-owned. Year-over-year unit growth stands at 80%, signaling an aggressive expansion trajectory. For software vendors, the immediate addressable market is 9 franchised locations, with new units likely coming online at a fast clip. The brand charges a 6.0% royalty on gross sales and offers an initial franchise term of 10 years. Average unit volume is not disclosed in the most recent FDD.
Who controls software purchasing
The 2025 FDD lists two executives in Item 1: Michael Sarago, CEO and Co-Founder, and Frederic Gilmore, Chief Culinary Officer and COO. In a system of this size, both individuals are the probable buying center for any software evaluation. There is no separate CIO, CTO, or VP of Technology named in the disclosure. Vendors should expect that a pitch lands directly with the co-founder and operations leadership, not a dedicated IT procurement function. No parent company is on file; the brand appears independently owned.
Mandated and current tech stack
HCK Hot Chicken does not disclose any mandated or recommended technology systems in its 2025 FDD. Item 11, which typically lists required POS, back-office, accounting, or inventory platforms, contains no named vendors or system specifications. This absence means franchisees may currently select their own technology, or the franchisor has not formalized a tech mandate. For software sellers, this represents either a greenfield opportunity or a signal that the brand has not yet prioritized technology standardization.
Procurement, renewals, and timing
The FDD does not include an Item 8 extract describing procurement restrictions, designated suppliers, or approved-supplier programs. Without that data, it is unclear whether franchisees must buy from specific vendors or may choose freely. On the renewal side, Item 17 states that a franchisee in good standing may enter into two consecutive successor agreements of 10 years each, though the successor contract may contain materially different terms. After those two renewals, there is no further contractual right to renew, but the franchisee may apply for a new agreement. The combination of rapid unit growth and 10-year term cycles suggests that new-store openings—rather than renewals—will be the primary trigger for software evaluation windows in the near term.
How to read the HCK Hot Chicken FDD
The full 2025 FDD is embedded below. It was filed with state franchise regulators and contains the standard 23 items, including the franchise agreement, financial performance representations (if any), and the list of current and former franchisees. For software vendors, the most actionable sections are Item 1 (the executives named above), Item 11 (no tech mandates disclosed), and Item 17 (renewal and term structure). Because the system is small and the executive team is lean, the FDD is the best available map of who to call and when. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
HCK Hot Chicken, answered from the filing
The 2025 FDD lists only Michael Sarago (CEO & Co-Founder) and Frederic Gilmore (Chief Culinary Officer and COO). In a 10-unit chain, both likely control or heavily influence software purchasing decisions.
The 2025 FDD does not disclose any mandated or recommended point-of-sale, back-office, or operational technology systems for franchisees.
As of the 2025 FDD, there are 10 total units: 9 franchised and 1 company-owned. The brand operates in the quick-service restaurant segment.
The 2025 FDD does not include an Item 8 extract detailing procurement restrictions, designated suppliers, or approved-supplier programs. The model is not publicly disclosed.
Franchise agreements run 10 years, with two consecutive 10-year successor terms possible if in good standing. With 80% YoY unit growth, new-location openings may create recurring software evaluation windows.
The FDD was filed with state franchise regulators in 2025. You can view the full document in the embedded PDF viewer below on this page.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment HCK Hot Chicken files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
8 operators run 8 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit8
Top states by locations
| FL | 2 |
|---|---|
| VA | 2 |
| NJ | 1 |
| NY | 1 |
| TX | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.