What means of payment are Auntie Annes franchisees required to use for amounts owed?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
aid by us; (iii) all marketplace facilitator or similar taxes imposed on, required to be collected by, or paid by us in connection with your use of websites, applications, or online ordering platforms; (iv) all other amounts we pay or must pay for you for any reason; (v) any other fees or expenses that we are entitled to collect from you; and (vi) any attorneys' fees we incur related to you, your Owners, or the Franchised Business (other than those we incur in response to your efforts to enforce this Agreement or in the defense or any claim we assert against you on which you substantially prevail in court or other formal legal proceedings).
- 3.4 Means of Payment. You must pay all amounts you owe us by electronic funds transfer or draft. We reserve the right to require you to deliver these payments to another party or location,
or through any other means of delivery we specify, including by check, electronic funds transfer or draft, wire transfer, or other forms of funds transfer. We also reserve the right to change the due dates or frequency of the due dates of the amounts that you owe to us under this Agreement. We will notify you when we change the location for payments, the required payment delivery method, the due dates, or the frequency of the due dates for payments. You must comply with any new or additional procedures as we may specify in the Manuals or otherwise, in writing, and/or perform any acts and sign and deliver any documents we designate as necessary to assist in accomplishing payment by the method that we specify within 30 days of our notice to you. If there are insufficient funds in your account to cover our draft, we will charge you return costs and an administrative fee. The written authorizations and documents that you must sign as provided under this Section may give us the right to initiate debit entries and/or credit corrections entries. We may make bank drafts based on the reports required under Section 14 (Right to Access; Records;
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are initially required to make all payments to Auntie Annes via electronic funds transfer or draft. However, Auntie Annes retains the right to modify these payment methods.
Auntie Annes can mandate that payments be delivered to a different party or location, or through other specified means, including check, electronic funds transfer or draft, wire transfer, or other forms of funds transfer. Auntie Annes also reserves the right to alter the due dates or the frequency of payment due dates.
Auntie Annes will provide notification of any changes to the payment location, required payment delivery method, due dates, or payment frequency. Franchisees must then comply with these new procedures within 30 days of the notice, which may include signing and delivering necessary documents to facilitate the specified payment method. If a franchisee's account has insufficient funds to cover a draft, Auntie Annes will charge return costs and an administrative fee.
Auntie Annes may also make bank drafts based on required reports, point-of-sale system data, audit results, or payment obligations outlined in the Franchise Agreement or other agreements. If a franchisee fails to report net sales, Auntie Annes has the right to make bank transfers or drafts for Royalty Fees and Advertising Contributions based on a reasonable estimate or point-of-sale data.