Does the Best Brains FDD include an ACH Authorization Form as a schedule?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
I have received a disclosure document dated May 27, 2025 that included the following Exhibits:
Exhibit A State Administrators and Agents for Service of Process
Exhibit B Franchise Agreement
Schedule 1-Franchise Location
Schedule 2-Lease Rider
Schedule 3-ACH Authorization Form
Schedule 4-Initial Inventory Agreement
Schedule 5-State Law Addenda to the Franchise Agreement
Exhibit C Promissory Notes Exhibit D Option Agreement Exhibit E List of Franchisees
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, an ACH Authorization Form is included as a schedule. Specifically, Schedule 3 is listed as the ACH Authorization Form. This form is part of the exhibits to the disclosure document, which also includes the Franchise Agreement, Lease Rider, Initial Inventory Agreement, and State Law Addenda to the Franchise Agreement.
For a prospective Best Brains franchisee, this means that the franchisor likely uses Automated Clearing House (ACH) transfers for payments. This is a common practice in franchising for collecting royalties, marketing fees, and other recurring charges. The ACH Authorization Form would allow Best Brains to directly debit the franchisee's bank account for these payments, streamlining the payment process.
It is important for a potential Best Brains franchisee to carefully review the ACH Authorization Form and understand the terms and conditions, including the amounts to be debited, the frequency of payments, and the procedures for modifying or canceling the authorization. Understanding this form is essential for managing the financial aspects of the franchise and ensuring timely payments to the franchisor.