Who controls the Provider Bank Account for Advanced Mobile Iv And Amiv?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
- B. Provider Bank Account.
Provider agrees to establish one or more segregated bank accounts, whose deposits are insured by the Federal Deposit Insurance Corporation at a bank selected by Provider (collectively, the "Provider Bank Account"), which shall be and at all times shall remain in Provider's name and under Provider's control, subject to the revocable powers of attorney set forth in Section 3A and the provision of this Section 3B.
Provider covenants to transfer and deliver to MSO for deposit into Provider Bank Account all funds received by or on behalf of Provider from patients or third party payors for services provided by Provider.
Upon receipt by MSO of any funds from patients or third party payors (and fiscal agents) or from Provider pursuant hereto for services provided by Provider, MSO shall immediately deposit the same into Provider Bank Account.
Provider shall designate at least two of MSO's designees as the sole authorized signatories on Provider Bank Account, and MSO shall inform Provider who these designees are in writing and may, from time to time, specify different persons to be the signatories.
MSO shall provide full access for Provider to information and records regarding Provider Bank Account.
Provider may at any time revoke all authority granted to MSO and MSO's designees with respect to the Provider Bank Account at any time, provided, however, that any such revocation shall constitute a material breach of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–202)
What This Means (2023 FDD)
According to the 2023 Advanced Mobile Iv And Amiv Franchise Disclosure Document, the Provider Bank Account is established by the Provider (the franchisee) and must remain in the Provider's name. However, the MSO (Management Services Organization) has significant control over the account.
Specifically, Advanced Mobile Iv And Amiv franchisees (Providers) must transfer all funds received from patients or third-party payors to the MSO for deposit into the Provider Bank Account. The MSO is then required to immediately deposit these funds into the account. Furthermore, the franchisee must designate at least two of the MSO's designees as the sole authorized signatories on the Provider Bank Account. Advanced Mobile Iv And Amiv must inform the franchisee in writing who these designees are and may change the designees from time to time.
While the franchisee retains the right to access information and records regarding the Provider Bank Account, they can revoke the authority granted to the MSO and its designees. However, doing so constitutes a material breach of the franchise agreement with Advanced Mobile Iv And Amiv. This arrangement gives the MSO considerable control over the franchisee's funds, as they control the signatories and have the power to deposit funds, but the franchisee ultimately owns the account and can access its records.