What costs are included in the collection costs and expenses that a Chicken Guy franchisee might incur?

According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees may incur collection costs and expenses. These costs are Chicken Guy's actual costs and expenses, which are due on demand if required. These costs may include costs and commissions due to a collection agency, reasonable attorneys' fees, costs incurred in creating or replicating reports demonstrating Gross Sales of the Franchised Restaurant, arbitration or court costs, expert witness fees, discovery costs and reasonable attorneys' fees and costs on appeal, together with interest charges on all of the foregoing.

These collection costs and expenses are imposed if Chicken Guy has to take action to collect overdue payments or enforce the franchise agreement. The inclusion of items like 'costs incurred in creating or replicating reports demonstrating Gross Sales' suggests that disputes over reported sales figures could trigger these expenses. The franchisee is responsible for covering all these costs, including interest charges on any outstanding amounts.

Franchisees should be aware that these collection costs can potentially be substantial, especially if legal action or arbitration is involved. The FDD specifies that these costs are in addition to the original amounts owed, meaning that a franchisee could end up paying significantly more than the initial debt if collection efforts are necessary. It is important for prospective franchisees to maintain accurate records and make timely payments to avoid incurring these additional expenses.