What is included in Appendix B, the Electronic Payment Authorization, for a Beauty Bungalows franchise?
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 is the Authorization Agreement for Preauthorized Payment Service. This agreement allows Beauty Bungalows to obtain payment for all royalty amounts owed by the franchisee, as specified in the Franchise Agreement. Payments are initiated through a payment entry to the franchisee's account.
The agreement requires the franchisee to authorize Beauty Bungalows to deduct royalty payments directly from their bank account. The franchisee must provide the account number, the name of the financial institution (the Bank), the payment amount, and the date on or immediately after which the payment should be deducted.
By signing this agreement, the franchisee also authorizes their bank to accept the payment entries and deduct the specified amounts from their account without verifying the correctness of the payments. This places the onus on the franchisee to ensure the payment amounts are accurate and in accordance with the Franchise Agreement, as the bank is not responsible for verifying these amounts.