What does 'Recurring EFT' mean in the Americas Best Value Inn franchise agreement?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise directed by us, all payments required to be provided by you to any of our affiliates or us will be effectuated by an automated payment system using automatically recurring electronic funds transfer that we initiate ("Recurring EFT"), also known as Auto Pay.
You will authorize automatically Recurring EFT payments prior to activation in the Brand and will cooperate with us to implement and maintain the efficient process of Recurring EFT payments.
You must ensure that we have up-to-date viable payment instructions (e.g., bank account and routing numbers) at all times during the Term of this Agreement.
You also shall maintain such bank account(s) for such payments and shall maintain an account balance that at least covers your Royalty and Brand Promotion Fee and any other fee described in Section 4.
You shall not alter or close any such account, except with our prior written approval.
If we permit you to pay by any other means, we may require payment of an alternative payment fee that is subject to change.
We may, at any time, modify the required method of payment by providing you with at least 30 days' prior notice.
Your obligation to pay amounts due to us or to any of our designees will not be suspended as a result of any interruption to your business, regardless of the cause.
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, Recurring EFT, also known as Auto Pay, refers to an automated payment system that the franchisor initiates for franchisees to make payments. Unless Americas Best Value Inn directs otherwise, all payments from the franchisee to the franchisor or its affiliates will be made through this system, which uses automatically recurring electronic funds transfers.
As a prospective Americas Best Value Inn franchisee, you will need to authorize these automatic Recurring EFT payments before your franchise is activated within the Brand. It is your responsibility to cooperate with Americas Best Value Inn to ensure this payment process is efficient and maintained throughout the term of the franchise agreement. This includes providing and keeping up-to-date viable payment instructions, such as bank account and routing numbers.
Furthermore, you must maintain a bank account suitable for these payments, ensuring the account balance covers at least the Royalty and Brand Promotion Fee, along with any other fees outlined in Section 4 of the franchise agreement. You are restricted from altering or closing this account without prior written approval from Americas Best Value Inn. While the franchisor may permit alternative payment methods, they reserve the right to charge an alternative payment fee, which is subject to change. However, Americas Best Value Inn can modify the required payment method at any time, provided they give you at least 30 days' notice.
It's important to note that your payment obligations to Americas Best Value Inn or its designees are not suspended if your business experiences any interruptions, regardless of the cause. This means you are still responsible for making payments even if your hotel operations are disrupted. This payment system ensures consistent and reliable payments to the franchisor, while requiring the franchisee to maintain adequate financial resources and adhere to the specified payment protocols.