Is an ACH Authorization Form required for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Schedule 1 | Shop Location and Designated Territory Acknowledgment |
|---|---|
| Schedule 2 | Statement of Franchise Owners |
| Exhibit 1 | Owner and Spouse Agreement and Guaranty |
| Exhibit 2 | Confidentiality Agreement |
| Exhibit 3 | Site Selection Acknowledgment |
| Exhibit 4 | Lease Agreement Rider |
| Exhibit 5 | Collateral Assignment of Lease |
| Exhibit 6 | Assignment of Telephone Numbers and Digital Media Accounts |
| Exhibit 7 | ACH Authorization Form |
| Exhibit 8 | General Release |
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, an ACH Authorization Form is required as part of the franchise agreement. Specifically, the ACH Authorization Form is listed as Exhibit 7 to the Franchise Agreement. This implies that franchisees must authorize Beard Papas to make Automated Clearing House (ACH) transactions, likely for ongoing royalty payments, marketing fees, or other charges outlined in the franchise agreement.
For a prospective Beard Papas franchisee, this means they will need to provide their bank account information and grant permission for electronic withdrawals. This is a fairly standard practice in franchising, as it provides a convenient and reliable method for franchisors to collect payments. However, franchisees should carefully review the terms of the ACH Authorization Form and the Franchise Agreement to understand the amounts, frequency, and conditions under which these withdrawals will be made.
It is important for franchisees to ensure they have sufficient funds in their account to cover these withdrawals to avoid any penalties or disruptions. Additionally, franchisees should understand the process for disputing any unauthorized or incorrect withdrawals. By understanding the terms and conditions of the ACH Authorization Form, a Beard Papas franchisee can ensure a smooth and transparent payment process with the franchisor.