What is the purpose of the designated bank account that a Beggars Pizza franchisee must maintain?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must maintain a designated bank account for the operation of the Beggars Restaurant.
Franchisee must deposit all revenues from the operation of the Beggars Restaurant in such bank account within two (2) days of receipt including, without limitation, cash, checks, credit card receipts, or the value of other forms of payment.
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, a franchisee is required to maintain a specific bank account for their Beggars Restaurant operations. Within two days of receiving any revenue, including cash, checks, credit card payments, or other forms of payment, the franchisee must deposit all revenues into this designated bank account. This account must be located within the United States and governed by U.S. laws.
Upon signing the franchise agreement, the franchisee must provide the bank name, account number, a voided check, and written authorization allowing the Supplier to withdraw funds via EFT for all payments owed by the franchisee. The franchisee is also responsible for any costs associated with these electronic transfers. Should the franchisee change banks or accounts, they must provide the new account information and withdrawal authorization 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. This arrangement ensures that Beggars Pizza's Supplier can efficiently collect payments for products sold to the franchisee, and that all revenues are properly accounted for and accessible for auditing and payment purposes.