Can the Franchisor charge a Bevaris Alliance franchisee for insufficient electronic funds transfers?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.14 Payment method. Unless the Franchisor otherwise notifies the Franchisee in writing, the Franchisee shall make all payments by electronic funds transfer to Franchisor's bank account which Franchisor will provide to Franchisee.
Franchisor may charge Franchisee for insufficient electronic funds transfers.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, Bevaris Alliance may charge franchisees for insufficient electronic funds transfers.
Specifically, the FDD states that the franchisor has the right to charge a Nonsufficient Funds Fee to the franchisee when applicable. The FDD also states that unless Bevaris Alliance notifies the franchisee otherwise in writing, the franchisee must make all payments via electronic funds transfer to the franchisor's bank account.
This means that if a Bevaris Alliance franchisee attempts to make a payment via electronic funds transfer, and the transfer is rejected due to insufficient funds, Bevaris Alliance has the right to charge the franchisee a fee. It is important for prospective franchisees to understand all the fees that Bevaris Alliance can charge, and to ensure they have sufficient funds available when making payments via electronic funds transfer.