What taxes, fees, or assessments are Chicken Guy franchisees required to reimburse the franchisor for?

According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are required to reimburse Chicken Guy for specific taxes, fees, or assessments. Chicken Guy franchisees must reimburse Chicken Guy for any taxes, fees, or assessments imposed on them for acting as a franchisor or licensing the Proprietary Marks. This reimbursement is due within 30 days of receiving an invoice from Chicken Guy, and the amount will be equivalent to Chicken Guy's expenses related to those taxes, fees, or assessments.

This means that if any governmental entity levies a tax, fee, or assessment directly on Chicken Guy due to its franchising activities or the licensing of its trademarks, the franchisee is responsible for covering those costs. This is a fairly standard practice in franchising, as it ensures that the franchisor does not bear the burden of taxes or fees that are directly related to the operation of the franchised businesses.

Prospective Chicken Guy franchisees should be aware of this potential expense and factor it into their financial planning. While the exact amount of these reimbursements is not predetermined, franchisees can request information from Chicken Guy regarding the types of taxes, fees, or assessments that have been imposed in the past to get a better understanding of potential future costs. It is important to note that this reimbursement is separate from any sales taxes that the franchisee collects from customers and remits to the appropriate taxing authority, as those taxes are excluded from gross sales.