When is the royalty fee, which is 5% of Gross Sales, due for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty2 | 5% of Gross Sales | Within 5 business days after the end of each fiscal week. | See Note 2 below. See Item 5 for summary of the Platinum Incentive Plan and incentives offered. |
You must participate in our electronic funds transfer program authorizing us to use a pre-authorized bank draft system.
All royalty fees and other amounts owed to us under the Franchise Agreement, including advertising contributions and interest charges, must be received by us or credited to our account before 5:00 p.m. on the fifth business day after the end of each fiscal week.
You must designate an account at a commercial bank and furnish the bank with all authorizations necessary to permit us to make withdrawals by electronic funds transfer. | Default Royalty | 1% of Gross Sales | Within 5 business days after the end of each fiscal week. | For as long as you are in default under the Franchise Agreement, we may raise your Royalty Fee by 1% of Gross Sales. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the royalty fee, which is 5% of Gross Sales, is due within 5 business days after the end of each fiscal week. Churchs Chicken requires franchisees to participate in an electronic funds transfer program, which authorizes them to use a pre-authorized bank draft system. All royalty fees and other amounts owed, including advertising contributions and interest charges, must be received or credited to Churchs Chicken's account before 5:00 p.m. on the fifth business day after the end of each fiscal week.
This means that as a Churchs Chicken franchisee, you'll need to ensure that the royalty payments are processed and received by Churchs Chicken within the specified timeframe to avoid any late payment fees or potential issues with the franchise agreement. You must designate an account at a commercial bank and furnish the bank with all authorizations necessary to permit Churchs Chicken to make withdrawals by electronic funds transfer.
It is important to note that if a Churchs Chicken franchisee is in default under the Franchise Agreement, Churchs Chicken may raise the Royalty Fee by 1% of Gross Sales. This default royalty is also due within 5 business days after the end of each fiscal week.