What happens if a Beggars Pizza franchisee changes banks or accounts?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The designated bank account must be located within the United States and governed by its laws.
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, franchisees are required to maintain a designated bank account for their restaurant's operations. This account must be located within the United States and governed by its laws. Upon signing the franchise agreement, the franchisee must provide the bank and account number, a voided check, and written authorization allowing the supplier to withdraw funds via EFT for all payments owed. Franchisees must also execute any necessary documents to maintain this EFT arrangement and cover all associated costs.
If a Beggars Pizza franchisee changes banks or accounts, they must provide information about the new account and authorization for withdrawals before the change occurs. Failure to provide this information or withdrawing consent for EFT withdrawals constitutes a breach of the franchise agreement.
This requirement ensures that Beggars Pizza's supplier can reliably collect payments for products sold to the franchisee. It is a fairly standard practice in franchising to have such requirements to ensure smooth financial transactions between the franchisee and the franchisor or their designated suppliers. Franchisees should be aware of these obligations and plan accordingly to avoid any disruptions or breaches of contract.