What is the consequence of withdrawing consent to withdrawals 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.
- (e) Suspension of Product Shipments.
If Franchisee fails to make any payment in full to Supplier when due, Supplier may, without limitation: (a) suspend or refuse shipment to Franchisee of additional Products until such payment has been made, and (b) require payment for any future shipments of Products to be made on a cash-on-delivery basis.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, if a franchisee withdraws consent for electronic fund transfers (EFT) to the supplier, it will be considered a breach of the agreement between the franchisee and the supplier.
Specifically, the FDD states that upon executing the agreement with the supplier, the franchisee must provide bank account information and written authorization for the supplier to withdraw funds via EFT for all payments. The franchisee is also required to execute any documents necessary to maintain this EFT arrangement. Failure to provide the required bank account information or withdrawing consent to withdrawals, regardless of the reason, constitutes a breach of the agreement.
In the event of such a breach, the supplier has the right to suspend or refuse further product shipments to the Beggars Pizza franchisee until all outstanding payments are made. Additionally, the supplier can demand that future product shipments be paid on a cash-on-delivery basis. This could significantly impact the franchisee's ability to operate the Beggars Pizza restaurant, as they rely on the supplier for essential products.