How will the Baya Bar Franchisor collect the interim management support fee?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
AUTHORIZATION AGREEMENT AUTOMATIC DEPOSITS (ACH WITHDRAWALS)
Franchisor Name: Baya Bar Franchise Systems, LLC
I (We) hereby authorize Baya Bar Franchise Systems, LLC, hereinafter called Franchisor, to initiate debit entries to my (our) Checking Account/Savings Account (Select One) indicated below at the depository financial institution named below, and to debit the same to such account. I (We) acknowledge that the origination of ACH transactions to my (our) account must comply with the provisions of U.S. Law, and that I will be responsible for any banking fees that my institution charges.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Baya Bar franchisees authorize the franchisor, Baya Bar Franchise Systems, LLC, to initiate debit entries to their designated checking or savings account for various fees. This is done through an Automated Clearing House (ACH) withdrawal system. The franchisee is responsible for any banking fees charged by their institution as a result of these transactions.
This authorization ensures that Baya Bar can collect payments such as the Brand Fund Contribution and potentially other fees, directly from the franchisee's bank account. The Brand Fund Contribution is a percentage of the Gross Revenue generated weekly by the franchisee's Baya Bar location. If a franchisee fails to report Gross Revenues on time, Baya Bar can collect 120% of the last Brand Fund Contribution payable, reconciling the amounts when the revenues are eventually reported.
While the provided excerpts do not explicitly mention an "interim management support fee," the authorization for ACH withdrawals suggests that any fees owed to Baya Bar, including potential support fees, can be collected through this method. This system provides a convenient and reliable way for Baya Bar to manage fee collection from its franchisees, ensuring timely payments and minimizing administrative overhead.
Prospective franchisees should confirm with Baya Bar which specific fees are collected via ACH and understand the full schedule of payments to avoid any unexpected withdrawals or banking fees. Understanding the ACH process is crucial for managing cash flow and maintaining a good financial relationship with the franchisor.