When is the Tax Reimbursement fee due for a Churchs Chicken franchise?
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 authority imposes a tax or fee on Churchs Chicken related to the franchise operation, the franchisee will be responsible for reimbursing Churchs Chicken for that amount. This reimbursement is not an upfront cost but rather a contingent liability that arises only if such taxes or fees are actually imposed on Churchs Chicken.
Prospective franchisees should be aware of this potential expense and factor it into their financial planning. While it's impossible to predict the exact amount of this fee, understanding the conditions under which it may be charged is crucial. Franchisees should maintain accurate records and promptly address any invoices received from Churchs Chicken to avoid late payment penalties or other complications.