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What happens if I withdraw consent for EFT withdrawals for my Beggars Pizza franchise?

Beggars_Pizza Franchise · 2025 FDD

Answer 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, withdrawing consent for EFT withdrawals is a breach of the agreement between the franchisee and the supplier.

Specifically, the FDD states that upon execution of the agreement, a franchisee must authorize the supplier to withdraw funds via EFT for all payments. The franchisee is also responsible for providing updated bank account information if they change banks.

If a Beggars Pizza franchisee withdraws consent for EFT withdrawals, the supplier may suspend or refuse to ship additional products until payment is made. The supplier may also require payment for future shipments to be made on a cash-on-delivery basis. This could significantly impact the franchisee's ability to operate the business if they cannot obtain necessary supplies.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.