What is Bb.Q Chicken's policy regarding the timeliness of payments from franchisees?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
fee shall be referred to as a "Taxable Payment"), then Franchisee shall pay Franchisor a sum equal to the amount of the Tax Charge, together with the Taxable Payment, such that the net sum received by Franchisor equals the amount of the Taxable Payment without deduction, withholding, payment or application of the Tax Charge.
4.8 Non-Sufficient Funds Fee
In the event any of your checks are returned, or an or an electronic funds transfer from
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, if a franchisee's check is returned or an electronic funds transfer is denied, the franchisee must pay Bb.Q Chicken a non-sufficient funds fee of $100, in addition to the amount originally due. This fee is not considered a penalty but rather covers Bb.Q Chicken's costs from the delayed or declined payment. This is in addition to any other remedies Bb.Q Chicken may pursue under the Franchise Agreement.
This policy ensures that Bb.Q Chicken is compensated for the administrative and financial burdens caused by franchisees' failed payments. It also incentivizes franchisees to maintain sufficient funds and accurate banking information to avoid these fees. The $100 fee is intended to cover the immediate costs incurred by Bb.Q Chicken, such as bank charges and internal processing expenses.
Franchisees should be aware of this policy and ensure they have sufficient funds available when making payments to Bb.Q Chicken. They should also understand that this fee does not preclude Bb.Q Chicken from taking further action if payments are not made in a timely manner. This is a fairly standard practice in franchising, as franchisors need to protect themselves from financial losses due to payment issues.