How will Chicken Guy handle overpayments of royalty fees by a franchisee?

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

This policy ensures that franchisees are not penalized for inadvertent overpayments. By crediting the overpayment to the franchisee's account, Chicken Guy effectively refunds the excess amount, which can then be used to offset future royalty fee obligations. This is a fairly standard practice in franchising, as it promotes transparency and fairness in financial dealings between the franchisor and franchisee.

It is important for franchisees to maintain accurate records and promptly communicate any suspected overpayments to Chicken Guy. This will help ensure that any necessary credits are applied in a timely manner. Franchisees should also familiarize themselves with Chicken Guy's reporting procedures to avoid errors in royalty fee calculations.