Must an Amorino franchisee participate in Amorino's electronic funds transfer program?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall maintain one operating account to make all payments required by this Agreement, and shall participate in Amorino's then-current electronic funds transfer program authorizing Amorino to use a pre-authorized bank draft system for the operating account.
You agree to: (a) make sufficient funds available in the operating account no later than the Due Date for any required payments; and (b) perform such acts and sign and deliver such documents as are necessary to accomplish payment to Amorino by electronic funds transfer, including signing and delivering appropriate pre-authorized draft forms designated by Amorino as necessary to initiate debit and/or credit the operating account.
You acknowledge that notwithstanding the provisions of this Section 6, we have the right, in our sole discretion, to require you to pay any amounts owed to us under this Agreement by another
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees are required to participate in Amorino's electronic funds transfer program. Franchisees must maintain an operating account and authorize Amorino to use a pre-authorized bank draft system for this account.
As part of this requirement, franchisees must ensure sufficient funds are available in the operating account by the specified due date for any required payments. They also need to perform necessary actions and sign documents to facilitate payments to Amorino via electronic funds transfer, including pre-authorized draft forms.
However, Amorino retains the right to require franchisees to use an alternative payment method at its discretion, in which case the franchisee must comply with Amorino's specified payment instructions and procedures. This means that while electronic fund transfer is the standard, Amorino can mandate other payment methods.
If a franchisee fails to make payments by the due date, interest will accrue at a rate of 18% per annum, or the maximum lawful interest rate, whichever is lower. Additionally, the franchisee is responsible for any fees associated with returned payments or insufficient funds, including a $50 charge that increases to $100 for subsequent occurrences within a 12-month period.