We estimate the cost of purchasing the Computer System will be approximately $5,000 to $7,000. In addition to offering and accepting HCK Hot Chicken gift cards and loyalty cards, you must use any credit card vendors and accept all credit cards and debit cards that we determine. The term “credit card vendors” includes, among other things, companies that provide services for electronic payment, such as near field communication vendors (for example, “Apple Pay” and “Google Wallet”). Restaurants will also be required to comply with EMV standards for credit cards. EMV is a technical standard for smart payment cards and for payment terminals and automated teller machines that can accept them. We estimate that each Restaurant will require two EMV terminals which are approximately $400 to $1,000 each, and these amounts are included in our estimates for the cost of your Computer System.
From the filings
HCK Hot Chicken
Quick service restaurantHCK Hot Chicken is a quick-service restaurant franchisor headquartered in Virginia with 7 franchised locations and no company-owned units. The 2026 FDD names CEO & Co-Founder Michael Sarago and sets technology and procurement rules in Items 8 and 11. Software vendors should read the filing below before pitching.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
6% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Recorded percentage components
These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.
1recorded components (FY2026)
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.
We may permit you to offer additional products under marks that we have licensed from third parties as a “ghost kitchen” or “virtual kitchen” (“Virtual Kitchen Products”) but we are under no obligation to do so. Virtual Kitchen Products are food products which are marketed 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, GrubHub, and similar service providers. You may not offer Virtual Kitchen Products without our prior written approval. We may revoke our approval of any Virtual Kitchen Products at any time, even if we have previously granted you approval. If we permit you to offer Virtual Kitchen Products, revenue generated from the sale of Virtual Kitchen Products will be included in the definition of “Gross Sales” under your Franchise Agreement.
We estimate the cost of purchasing the Computer System will be approximately $5,000 to $7,000. In addition to offering and accepting HCK Hot Chicken gift cards and loyalty cards, you must use any credit card vendors and accept all credit cards and debit cards that we determine. The term “credit card vendors” includes, among other things, companies that provide services for electronic payment, such as near field communication vendors (for example, “Apple Pay” and “Google Wallet”). Restaurants will also be required to comply with EMV standards for credit cards. EMV is a technical standard for smart payment cards and for payment terminals and automated teller machines that can accept them. We estimate that each Restaurant will require two EMV terminals which are approximately $400 to $1,000 each, and these amounts are included in our estimates for the cost of your Computer System.
We may permit you to offer additional products under marks that we have licensed from third parties as a “ghost kitchen” or “virtual kitchen” (“Virtual Kitchen Products”) but we are under no obligation to do so. Virtual Kitchen Products are food products which are marketed 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, GrubHub, and similar service providers. You may not offer Virtual Kitchen Products without our prior written approval. We may revoke our approval of any Virtual Kitchen Products at any time, even if we have previously granted you approval. If we permit you to offer Virtual Kitchen Products, revenue generated from the sale of Virtual Kitchen Products will be included in the definition of “Gross Sales” under your Franchise Agreement.
We may permit you to offer additional products under marks that we have licensed from third parties as a “ghost kitchen” or “virtual kitchen” (“Virtual Kitchen Products”) but we are under no obligation to do so. Virtual Kitchen Products are food products which are marketed 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, GrubHub, and similar service providers. You may not offer Virtual Kitchen Products without our prior written approval. We may revoke our approval of any Virtual Kitchen Products at any time, even if we have previously granted you approval. If we permit you to offer Virtual Kitchen Products, revenue generated from the sale of Virtual Kitchen Products will be included in the definition of “Gross Sales” under your Franchise Agreement.
Franchisor behaviours
What the franchisor requires
24 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 8 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?
YesItem 11
We (or our designee) have the right to independently access the electronic information and data generated from the Computer System.
How the franchisor buys
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may revise our specifications for the Computer System periodically.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
26013Item 8
As of our last fiscal year ending December 31, 2025, we derived $26,013 in rebates from food and beverage distributors on franchisee purchases representing 5.8% of our total revenue of $450,512 in 2025.
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, 2025, we derived $26,013 in rebates from food and beverage distributors on franchisee purchases representing 5.8% of our total revenue of $450,512 in 2025.
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 approved suppliers and under our specifications.
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
you want to use or sell a product or service that we have not yet evaluated, or 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…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
Franchisee’s Section 15 You must stop using our Marks; pay all amounts due to us; return obligations on the Brand Standards Manual, and all training and promotional termination/non- materials to us; make cosmetic changes to your Restaurant so that renewal it no longer resembles our proprietary design; at our…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
If we conduct an inspection of your Restaurant and determine you are not operating in compliance with the Franchise Agreement, we may require that you attend remedial training that addresses your operational deficiencies.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
If we elect to form such cooperatives, or if such cooperatives already exist near your territory, you will be required to participate in compliance with the provisions of the Brand Standards Manual, which we may periodically modify in our discretion.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
Hot Chikn Kitchn LLC 20 Site Review 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?
YesItem 11
You may not independently market your HCK Hot Chicken Business through social media sites.Our online policies and procedures may change as technology and the Internet changes.
Is a minimum grand opening advertising spend required?
YesItem 11
Grand Opening Advertising During the period that is four weeks before opening and through the first 90 days after opening, you must conduct a grand opening advertising program that we approve.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
Local Advertising In addition to the Brand Fund Contributions, you must spend one percent (1%) of your annual Gross Sales on local advertising each year (“Local Advertising Requirement”).
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
In addition to offering and accepting HCK Hot Chicken gift cards and loyalty cards, you must use any credit card vendors and accept all credit cards and debit cards that we determine.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If we elect to form such cooperatives, or if such cooperatives already exist near your territory, you will be required to participate in compliance with the provisions of the Brand Standards Manual, which we may periodically modify in our discretion.
Operations
Must equipment be purchased from designated or approved suppliers?
YesItem 8
We may designate certain non-proprietary products, such as condiments, merchandise, beverages, raw materials, fixtures, furnishings, equipment, uniforms, supplies, paper goods, services, menus, packaging, forms, computer hardware, software, modems and peripheral equipment and other products, supplies, services, and…
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
Payments are made via an electronic funds transfer (“EFT”).
Must the franchisee participate in a gift card program?
YesItem 11
In addition to offering and accepting HCK Hot Chicken gift cards and loyalty cards, you must use any credit card vendors and accept all credit cards and debit cards that we determine.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
Hot Chikn Kitchn LLC 34 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.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
Computer Hardware, Software and POS System 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 11
We (or our designee) have the right to independently access the electronic information and data generated from the Computer System.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 6
We may charge (Note 4) you for training additional persons, replacement personnel, newly hired personnel, refresher training courses, advanced training courses, and additional or special assistance or training you need or request.
The filing answers no to 2 questions
- Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
- Is there a franchisee advisory council, association or committee?Item 11
The vendor opportunity at HCK Hot Chicken
HCK Hot Chicken operates 7 franchised quick-service restaurants, all franchised with no company-owned units. The 2026 FDD reports franchised outlets fell 22.2% year over year. The FDD makes no financial performance representation under Item 19.
Who controls software purchasing
Item 2 names Michael Sarago as CEO & Co-Founder. Item 11 gives the franchisor the right to designate computer hardware, software, POS systems, and suppliers. Franchisees must use the designated systems and suppliers, which means software purchasing decisions are controlled at the HQ level.
Tech named in the FDD, and what is actually required
Item 11 requires franchisees to purchase a computer and POS system that includes a laptop, all-in-one printer/scanner/copier, firewall, two POS terminals, two cash drawers, two receipt printers, two scanners, a remote printer, and one kitchen display system. The system must generate reports on gross sales and product mix, and the franchisor may install an application to view and download sales and product mix information. Franchisees must maintain a business-class internet connection. The estimated cost is $5,000 to $7,000, with maintenance contracts of $250 to $500 per month after the first year.
The FDD names Apple Pay, Google Pay, DoorDash, Grubhub, and Uber Eats. Item 11 requires franchisees to use any credit card vendors and accept all credit and debit cards determined by the franchisor. Item 8 requires use of the franchisor's designated merchant services provider for debit and credit cards.
Procurement, renewals, and timing
Item 8 uses an approved-supplier list. Franchisees must purchase proprietary products for secret recipes or formulas only from the franchisor or an approved third party. The franchisor may designate non-proprietary products, including computer hardware, software, modems, and peripheral equipment. Franchisees may propose a supplier for approval. For non-traditional locations, franchisees are not required to purchase or lease systems from the designated supplier.
Item 17 renewal terms are not detailed in the data provided. With 7 franchised units and a recent decline in franchised outlets, software contract opportunities may be limited and tied to new franchise agreements or system changes.
How to read the HCK Hot Chicken FDD
The embedded PDF viewer below contains HCK Hot Chicken's 2026 Franchise Disclosure Document. Review Items 8, 11, and 17 for supplier, technology, and renewal rules. For a ranked target list of franchise systems, talk to FranCloud.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
HCK Hot Chicken, answered from the filing
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Related Quick service restaurant brands
Primary franchise filings · updated October 2026. Read the original filing for definitions, conditions, and qualifications.