Must I authorize the supplier to withdraw funds from my bank account for my Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon execution of the Agreement, Franchisee must execute Exhibit B attached hereto and furnish to Supplier the bank and account number, a voided check from such bank account, and written authorization for Supplier to withdraw funds from the bank account via EFT without further consent or authorization for all payments payable by Franchisee to Supplier hereunder.
Franchisee must execute any documents as may be necessary to effectuate and maintain the EFT arrangement as required by Supplier.
Franchisee must pay all costs associated with any such transfer.
If Franchisee changes banks or accounts for the bank account required by this Section
- 3(d), Franchisee must, prior to such change, provide such information concerning the new account and an authorization to make withdrawals therefrom.
Franchisee's failure to provide such information concerning the bank account required by this Section 3(d) or any new account, or Franchisee's withdrawal of consent to withdrawals for whatever reason and by whatever method, will be a breach of the Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, as a franchisee, you are required to authorize the supplier to withdraw funds from your designated bank account via Electronic Funds Transfer (EFT). Upon signing the franchise agreement, you must complete Exhibit B, provide your bank account number, a voided check, and written authorization for the supplier to withdraw funds for all payments due to them. This authorization allows the supplier to withdraw funds without requiring further consent for each transaction.
The FDD states that you must also execute any necessary documents to maintain the EFT arrangement as required by the supplier and cover all costs associated with these transfers. If you change banks or accounts, you must provide the new account information and authorization before the change takes effect. Failure to provide the required bank account information or withdrawing consent for EFT withdrawals constitutes a breach of the franchise agreement.
Beggars Pizza requires you to maintain a designated bank account for your restaurant and deposit all revenues into this account within two days of receipt. Payments to the supplier for products purchased are due each Monday for the previous week's purchases, made via EFT. The supplier retains the right to modify the accounting period, potentially requiring more frequent payments. If you fail to make payments on time, the supplier can suspend product shipments or demand cash-on-delivery for future orders. This system ensures timely payments to the supplier and maintains a consistent supply of products for your Beggars Pizza restaurant.