What is the processing fee charged by Browns Chicken if a bank draft is dishonored?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Processing Fee | $50 | On demand by Brown | Payable if your bank draft is dishonored for any reason |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee's bank draft is dishonored for any reason, Browns Chicken will charge a processing fee of $50. This fee is payable on demand by Browns Chicken.
This means that if a franchisee's payment through automatic bank draft fails due to insufficient funds or any other reason, Browns Chicken has the right to immediately request and receive $50 from the franchisee to cover the processing of the failed payment.
Franchisees should ensure they maintain sufficient funds in their accounts to avoid incurring this fee. This is especially important since Browns Chicken requires most fees, such as royalty and advertising fees, to be paid via automatic bank draft.