What is the name of the Chicken Guy's electronic funds transfer program that franchisees must participate in?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
ry kind and nature, promotional or otherwise, and for services performed from or at the Franchised Restaurant, including, but not limited to, such off-premises services as catering and delivery. Gross Sales do not include sales taxes or other taxes collected from customers for transmittal to the appropriate taxing authority, promotional discounts and coupons, the value of any employee discounts provided to Franchisee's bona fide employees during the fiscal week in which the discounts are provided, all proceeds from the sale of gift certificates or stored value cards, customer refunds made in good faith to customers, or the sale of equipment used in the operation of the Franchised Restaurant.
- E. Remittance Reports. Within 3 business days after the end of each fiscal week (as defined by Chicken Guy from time to time), Franchisee shall submit to Chicken Guy in writing by electronic mail, polling by computer or such other form or method as Chicken Guy may designate the amount of Gross Sales from the Franchised Restaurant during the preceding fiscal week and such other data or information as Chicken Guy may require.
F. Payment of Fees.
- (1) Franchisee must participate in Chicken Guy's then-current electronic funds transfer program authorizing Chicken Guy to utilize a pre-authorized bank draft system. All royalty fees applicable to the Gross Sales and other amounts owed under this Agreement, including advertising fees and interest charges must be received by Chicken Guy or credited to Chicken Guy's account by pre-authorized bank debit before 5:00 p.m. on the 5th day after the end of each fiscal week, or at a later point specified by Chicken Guy from time to time ("Due Date"). On each Due Date, Chicken Guy will transfer from the Franchised Restaurant's commercial bank operating account ("Account") the amount reported to Chicken Guy in Franchisee's remittance report or determined by Chicken Guy based on the records contained in the cash registers/computer terminals of the Franchised Restaurant. If Franchisee has not reported Gross Sales to Chicken Guy for any fiscal period, Chicken Guy will transfer from the Account an amount calculated in accordance with its estimate of the Gross Sales during the fiscal period. If, at any time, Chicken Guy determines that Franchisee has underreported the Gross Sales of the Franchised Restaurant, or underpaid the royalty fee or other amounts due to Chicken Guy under this Agreement or any other agreement, Chicken Guy shall initiate an immediate transfer from the Account in the appropriate amount in accordance with the foregoing procedure, including interest as provided in this Agreement. 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.
- (2) In connection with payment of the royalty fee by electronic funds transfer, Franchisee shall no later than 30 days prior to opening the Franchised Restaurant: (a) comply with procedures specified by Chicken Guy in the Manual or otherwise in writing; (b) perform those acts and sign and deliver those documents (including the ACH Authorization form attached as Exhibit C) as may be necessary to accomplish payment by electronic funds transfer as described in this Section 7.F.;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, franchisees must participate in Chicken Guy's electronic funds transfer program, which utilizes a pre-authorized bank draft system. This system allows Chicken Guy to automatically debit royalty fees, advertising fees, interest charges, and other amounts owed from the franchisee's commercial bank operating account. These fees are due by 5:00 p.m. on the 5th day after the end of each fiscal week, or at a later date specified by Chicken Guy.
Chicken Guy will transfer the amount reported by the franchisee in their remittance report or as determined by Chicken Guy based on the records in the restaurant's cash registers/computer terminals. If the franchisee fails to report gross sales, Chicken Guy will estimate the sales and transfer an amount accordingly. If Chicken Guy determines that the franchisee has underreported sales or underpaid fees, they can initiate an immediate transfer for the appropriate amount, including interest.
Prior to opening, franchisees must comply with Chicken Guy's procedures for electronic funds transfer, including signing the ACH Authorization form. They must also designate a commercial bank account and authorize Chicken Guy to initiate debit entries for payments. Franchisees are required to ensure sufficient funds are available in the designated account by the due date for payment. Chicken Guy retains the right to modify the payment method with written notice. Failure to maintain sufficient funds in the account constitutes a default of the franchise agreement.