What is the late payment fee for overdue payments or understated sales for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Late Payment Fee - Overdue Payments and Understated Sales | 1.5% of the amounts due per month, plus $100 | On demand | The late payment fee runs from the date your payment was due until the date we receive it. The late payment fee charged will not exceed the maximum amount permitted by applicable law. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee will incur a late payment fee for overdue payments and understated sales. This fee is 1.5% of the amount due per month, in addition to a $100 charge.
The late payment fee is calculated from the date the payment was originally due until the date Churchs Chicken receives the payment. The FDD specifies that the late payment fee charged will not exceed the maximum amount permitted by applicable law.
It is important for prospective Churchs Chicken franchisees to maintain accurate sales records and ensure timely payments to avoid these additional fees. Franchisees should be aware of the due dates for all payments and implement systems to ensure payments are made on time to avoid incurring these charges.