Who selects the bank for 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 Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, the franchisee, referred to as the Provider, selects the bank for the Provider Bank Account. However, this selection is subject to specific conditions and controls outlined in the agreement.
The Provider must establish one or more segregated bank accounts insured by the Federal Deposit Insurance Corporation (FDIC). These accounts must be in the Provider's name and under their control, but with revocable powers of attorney granted to the Management Services Organization (MSO). The Provider is obligated to deposit all funds received from patients or third-party payors into this Provider Bank Account.
While the Provider selects the bank, the MSO has significant control over the account. The Provider must designate at least two of MSO's designees as the sole authorized signatories on the Provider Bank Account. The MSO must provide the Provider with full access to information and records regarding the Provider Bank Account. The Provider retains the right to revoke the authority granted to MSO and its designees, but doing so constitutes a material breach of the agreement. This arrangement ensures that while the account is in the Provider's name, the MSO has control over the funds and can manage the financial aspects of the business. A prospective franchisee should consider the implications of granting such control to the MSO and the consequences of revoking that authority.