factual

How will Chicken Guy handle any overpayment of fees by a franchisee?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

Any overpayment will be credited to the Account effective as of the first reporting date after Chicken Guy and Franchisee determine that such credit is due.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, if a franchisee overpays any fees, Chicken Guy will credit the overpayment to the franchisee's account. This credit will be applied starting from the first reporting date after both Chicken Guy and the franchisee have determined that the credit is indeed due.

This process ensures that franchisees are reimbursed for any overpayments they may have made. By crediting the account on the next reporting date, Chicken Guy provides a relatively prompt correction of the franchisee's financial standing. The requirement for both parties to agree on the credit ensures accuracy and prevents unilateral adjustments.

It is important for prospective franchisees to maintain accurate records and regularly reconcile their accounts with Chicken Guy to identify any potential overpayments promptly. Franchisees should also familiarize themselves with the reporting procedures and timelines to ensure timely resolution of any discrepancies. This clause protects the franchisee from overpayment, but it is the franchisee's responsibility to monitor and communicate with Chicken Guy to ensure proper credit is applied.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.