What information must I provide to the supplier regarding my bank account for my Beggars Pizza franchise?
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, upon the execution of the franchise agreement, you must furnish the supplier with specific bank account information. This includes the bank name, account number, and a voided check from the designated bank account. Additionally, you must provide written authorization allowing the supplier to withdraw funds from the account via electronic funds transfer (EFT) for all payments owed to the supplier, without requiring further consent or authorization. Franchisees are also obligated to execute any documents necessary to facilitate and maintain the EFT arrangement as required by the supplier.
It is important to note that the designated bank account must be located within the United States and governed by its laws. If a franchisee changes banks or accounts, they must provide the new account information and withdrawal authorization to the supplier 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.
These requirements ensure that the supplier can receive timely payments for products purchased by the Beggars Pizza franchisee. The franchisee is responsible for covering all costs associated with these electronic transfers. The supplier, in turn, has the right to suspend product shipments if payments are not made when due, and may also require future shipments to be paid on a cash-on-delivery basis.