What is Exhibit B and what does it authorize for a 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, Exhibit B is the Electronic Funds Withdrawal Authorization. Upon signing the Supplier Agreement, the franchisee must also execute Exhibit B and provide the supplier with their bank name, account number, a voided check, and written authorization allowing the supplier to withdraw funds from the franchisee's bank account via EFT (electronic funds transfer). This authorization covers all payments the franchisee owes to the supplier under the agreement, and it does not require further consent or authorization for each individual transaction.
This requirement ensures that Beggars Pizza's supplier can reliably collect payments for products sold to the franchisee. The franchisee is also responsible for covering all costs associated with these electronic transfers. If the franchisee changes banks or accounts, they must provide the new account information and authorization before the change takes effect.
Failure to provide the necessary bank account information or withdrawing consent for EFT withdrawals constitutes a breach of the Supplier Agreement. This provision is designed to streamline the payment process and reduce the risk of late or missed payments, which could disrupt the supply chain for the Beggars Pizza franchise. This type of electronic funds transfer authorization is a fairly standard practice in franchising, as it provides a predictable payment method for ongoing fees and purchases.