Under what conditions can an Aplus franchisee close the Electronic Depository Transfer Account?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor currently requires all Royalty Fees, Marketing Fees, Technology Fees, and other amounts due for purchases by Franchisee from Franchisor, or any Affiliate, rent pursuant to Attachment 6 (if applicable), and other amounts due to Franchisor, or any Affiliate, to be paid through an Electronic Depository Transfer Authorization (see Attachment 5). Franchisee shall open and maintain a single bank account for all its Franchised Business, and none other without Franchisor's written consent, and shall provide Franchisor with continuous access via electronic transfer to such account for the purpose of receiving any payments due to Franchisor, or any Affiliate. Franchisee shall make deposits to the account sufficient to cover amounts owed to Franchisor, or any Affiliate, prior to the date such amounts are due. Franchisee shall execute any documents Franchisor's or Franchisee's bank requires to establish and implement the Electronic Depository Transfer Account. Once established, Franchisee shall not close the Electronic Depository Transfer Account without Franchisor's written consent. Franchisor reserves the right to designate another method of payment by provide thirty (30) days' written notice to Franchisee.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are required to maintain an Electronic Depository Transfer Account for payments to Aplus. This account is used for Royalty Fees, Marketing Fees, Technology Fees, purchases from Aplus or its affiliates, rent (if applicable), and other amounts due to Aplus or its affiliates.
The FDD states that franchisees must open and maintain a single bank account for their Aplus franchise and provide Aplus with continuous electronic access to it. Franchisees are responsible for ensuring sufficient funds are available in the account to cover amounts owed to Aplus or its affiliates before the due date. Franchisees must also execute any documents required by Aplus's or the franchisee's bank to establish and implement the Electronic Depository Transfer Account.
The key restriction is that once the Electronic Depository Transfer Account is established, the Aplus franchisee "shall not close the Electronic Depository Transfer Account without Franchisor's written consent." This means that franchisees need explicit permission from Aplus to close this account. However, Aplus retains the right to designate another method of payment by providing thirty (30) days' written notice to the franchisee.