Can Chicken Guy modify the method by which a franchisee pays royalty fees and other amounts?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Notwithstanding the provisions of this Section 7.F., Chicken Guy reserves the right to modify, at its option, the method by which Franchisee pays the royalty fee and other amounts owed under this Agreement, including advertising fees and interest charges, upon receipt of written notice from Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, Chicken Guy retains the right to modify how franchisees pay royalty fees, advertising fees, and interest charges.
Specifically, while franchisees are generally required to participate in Chicken Guy's electronic funds transfer program, authorizing the company to use a pre-authorized bank draft system, Chicken Guy can change this payment method. This modification can be implemented upon written notice to the franchisee.
This provision provides Chicken Guy with flexibility in managing fee collection. For a potential franchisee, this means the payment methods could change during the term of the agreement. It is important to stay informed of any written notices from Chicken Guy regarding changes to payment procedures to avoid any defaults, as failure to have sufficient funds in the designated account constitutes a breach of the agreement.