When must a Chicken Guy franchisee reimburse the franchisor for taxes, fees, or assessments?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE(1) | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Taxes | Our expenses | Within 30 days of receipt of invoice | You must reimburse us for any taxes, fees or assessments imposed on us for acting as franchisor or licensing the Proprietary Marks. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are required to reimburse Chicken Guy for any taxes, fees, or assessments imposed on them for acting as the franchisor or licensing the Proprietary Marks. This reimbursement is due within 30 days of receiving an invoice from Chicken Guy. This means that if Chicken Guy incurs costs related to taxes, fees, or assessments due to their role as the franchisor, they will pass those costs on to the franchisees.
This is a fairly standard practice in franchising, where franchisees often bear the burden of certain costs incurred by the franchisor. The franchisee should be aware of this potential expense and factor it into their financial planning. It is important to note that the amount of these taxes, fees, or assessments is not predetermined and can vary.
Prospective Chicken Guy franchisees should inquire about the typical range or average amount of these expenses to better understand the potential financial impact. Understanding the nature and frequency of these reimbursements is crucial for accurate budgeting and financial forecasting. Franchisees should also clarify what specific types of taxes, fees, or assessments are covered under this provision to avoid any surprises.