What is the franchisee's obligation if taxes, fees, or assessments are imposed on Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If any taxes, fees or assessments are imposed on Chicken Guy by reason of its acting as franchisor or licensing the Proprietary Marks under this Agreement, Franchisee shall reimburse Chicken Guy for the amount of those taxes, fees or assessments within 30 days after receipt of an invoice from Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if any taxes, fees, or assessments are imposed on Chicken Guy due to its role as franchisor or its licensing of proprietary marks, the franchisee is obligated to reimburse Chicken Guy for the amount of these charges.
This reimbursement must occur within 30 days of the franchisee receiving an invoice from Chicken Guy detailing the taxes, fees, or assessments. This means that franchisees need to be prepared to cover these additional costs, which are separate from other fees like the initial franchise fee, royalty fees, and advertising fees.
This clause protects Chicken Guy from bearing the burden of taxes and fees levied because of its franchising activities. It is a fairly standard practice in franchising agreements, where franchisees often bear the responsibility for costs associated with operating under the franchisor's brand and system. Prospective franchisees should factor this potential expense into their financial planning.