Does the Beauty Bungalows Franchise Agreement specify any financial thresholds related to the 'Electronic Payment Authorization'?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
APPENDIX B TO FRANCHISE AGREEMENT
AUTHORIZATION AGREEMENT FOR PREAUTHORIZED PAYMENT SERVICE
I (or We if there are joint owners of the account referenced later in this agreement) authorize and request Beauty Bungalows Franchising, LLC (the "Company") to obtain payment for all royalty amounts I (we) owe to the Company pursuant to the Franchise Agreement between the Company and me (us), as these amounts become due by initiating a payment entry to my (our) account. The account number, name of financial institution, payment amount, and date on or immediately after which payment should be deducted from the account are identified below. In addition, I (we) authorize and request the financial institution, now referred to as the Bank, to accept the payment entries presented to the Bank and to deduct them from my (our) account without responsibility for the correctness of these payments.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Appendix B of the Franchise Agreement includes an 'Authorization Agreement for Preauthorized Payment Service.' This agreement allows Beauty Bungalows to obtain payment for all royalty amounts owed by the franchisee, as these amounts become due. This is done by initiating a payment entry to the franchisee's account. The franchisee also authorizes their financial institution to accept these payment entries and deduct them from their account.
The agreement requires the franchisee to provide the account number, name of the financial institution, payment amount, and date on or immediately after which payment should be deducted from the account. However, the excerpt does not specify any financial thresholds related to the Electronic Payment Authorization.
While the agreement outlines the process for preauthorized payments, it does not mention any minimum or maximum amounts, or any other financial limits or conditions related to this payment method. A prospective Beauty Bungalows franchisee should confirm with the franchisor if there are any unwritten policies or limits related to the electronic payment authorization.