Can Bang Cookies require franchisees to pay royalty fees by means other than ACH?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Payment Authorization: Upon the request of Franchisor and in no event not later than 30 days prior to the earlier of the Actual Business Commencement Date or the Scheduled Business Commencement Date, Franchisee shall execute Franchisor's designated ACH Authorization Form and such other authorization agreements, in the form proscribed by Franchisor and permitting Franchisor's direct withdrawal and/or electronic transfer of sums from Franchisee's designated business bank account, for the on-going payment of Royalty Fees, and other fees and sums due from Franchisee under this Agreement. As of the Effective Date, Franchisor's current ACH Authorization that must be executed and complied with by Franchisee is attached to this Agreement as Exhibit 7. Franchisor may require Franchisee to pay the Royalty Fees and other amounts due under this Agreement by means other than ACH and/or automatic debit whenever Franchisor deems appropriate, and Franchisee agrees to comply with Franchisor's payment instructions.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Bang Cookies may require franchisees to pay royalty fees and other amounts due under the Franchise Agreement by means other than ACH (Automated Clearing House).
Specifically, the FDD states that while franchisees will initially be required to authorize ACH payments for ongoing royalty fees and other sums due, Bang Cookies retains the right to require payment through alternative methods whenever it deems appropriate. The franchisee must comply with Bang Cookies's payment instructions.
This means that a Bang Cookies franchisee should be prepared to potentially use various payment methods for royalty fees, depending on the franchisor's directives. This could include, but is not limited to, wire transfers, checks, or other electronic payment systems. Franchisees should maintain open communication with Bang Cookies to ensure timely and accurate payments using the mandated methods.