Is a Bang Cookies franchisee required to install specific payment systems?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
You must install and use, at your expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate and require in the operation of your Shop. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account.
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees are required to install and use specific payment systems. Franchisees must install and use, at their own expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit, and/or electronic funds transfer systems that Bang Cookies designates.
Bang Cookies specifies that payment is subject to their instruction, including the option to have all fees automatically drafted or debited from the franchisee's business bank account. To facilitate this, franchisees must sign an ACH Authorization Form, which is Exhibit 7 of the Franchise Agreement, permitting Bang Cookies to electronically debit their designated bank account for all payable fees.
Furthermore, franchisees are obligated to deposit the Gross Sales of their shop into designated bank accounts that are subject to Bang Cookies's ACH authorization. Franchisees are also responsible for paying all service charges and fees charged by their bank to allow Bang Cookies to electronically debit their account.