Within how many days must a Chicken Guy franchisee reimburse Chicken Guy for taxes, fees, or assessments?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If any taxes, fees or assessments are imposed on Chicken Guy by reason of its acting as franchisor or licensing the Proprietary Marks under this Agreement, Franchisee shall reimburse Chicken Guy for the amount of those taxes, fees or assessments within 30 days after receipt of an invoice from Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if any taxes, fees, or assessments are imposed on Chicken Guy due to its role as franchisor or licensing the Proprietary Marks, the franchisee is required to reimburse Chicken Guy for these amounts. This reimbursement must occur within 30 days after the franchisee receives an invoice from Chicken Guy. This means that if Chicken Guy incurs costs related to taxes, fees, or assessments because of the franchise operation, the franchisee is responsible for covering those costs.
This requirement ensures that Chicken Guy does not bear the financial burden of taxes, fees, or assessments that arise from the franchisee's operation or the licensing of the brand's trademarks. The franchisee's obligation to pay within 30 days of receiving an invoice provides a defined timeframe for settling these costs. This arrangement is fairly standard in franchising, where franchisees often bear the responsibility for costs directly related to their specific franchise unit.
For a prospective Chicken Guy franchisee, this means being prepared to handle potential tax, fee, or assessment-related invoices from Chicken Guy within a 30-day window. It would be prudent to budget for such expenses and maintain open communication with Chicken Guy to understand the nature and potential amounts of these charges. Understanding the types of taxes, fees, or assessments that might be applicable can help in financial planning and ensure compliance with the franchise agreement.