What costs are included in the collection costs and expenses that a Chicken Guy franchisee might have to pay?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE(1) | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Collection Costs and Expenses | Our actual costs and expenses | On demand, if required | These costs and expenses include, but are not limited to, costs and commissions due 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. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees may incur collection costs and expenses. These costs are the actual costs and expenses Chicken Guy incurs while attempting to collect payments from the franchisee. These collection costs and expenses are due on demand, if required by Chicken Guy.
The specific costs included, but not limited to, are 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.
This means that if a Chicken Guy franchisee fails to make required payments, they are responsible not only for the original amount owed but also for any expenses Chicken Guy incurs in the process of trying to recover that debt. This can include fees paid to debt collectors, legal fees, and other associated costs. Franchisees should be aware that these collection costs can potentially add a significant financial burden on top of the original debt.