When is the Tax Reimbursement fee due to Churchs Chicken?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Tax Reimbursement | If any taxes, fees or assessments are imposed on us by reason of our acting as franchisor or licensing proprietary marks to you, then you must reimburse us that amount | 30 days after receipt of invoice |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the Tax Reimbursement fee is due 30 days after the franchisee receives an invoice from Churchs Chicken. This fee is imposed if any taxes, fees, or assessments are levied on Churchs Chicken due to their role as the franchisor or for licensing their proprietary marks to the franchisee.
In practical terms, this means that if a governmental entity imposes a tax or fee on Churchs Chicken related to the franchise operation, the franchisee is responsible for reimbursing Churchs Chicken for that amount. Churchs Chicken will then invoice the franchisee for the amount due. The franchisee must pay this invoice within 30 days of receipt.
It is important for prospective franchisees to understand that this Tax Reimbursement fee is separate from the taxes that the franchisee collects directly from customers and pays to the government. The Tax Reimbursement fee covers taxes or fees imposed on Churchs Chicken as the franchisor, not sales taxes or other taxes related to the franchisee's direct sales. Franchisees should budget for this potential expense and ensure they understand what triggers it.