Does the collateral for a Beyond Juicery Eatery franchise include bank accounts?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
24.09 You grant us a continuing security interest in the Collateral listed in this section to secure the payment of all fees and other amounts due to us and to secure your full performance under this Agreement.
A.
Automatic Debit of Amount Due to Franchisor Restaurant: FRANCHISEE d/b/a Authorized Assumed Name
I, the authorized representative and agent for the Restaurant for the account identified below referenced, authorize Beyond Juicery + Eatery Franchising, LLC (referred to as "Franchisor") to debit on every Wednesday from Franchisee's bank account, the amount of Royalty and Marketing Fee due to the Franchisor based on Gross Sales of the above referenced Beyond Juicery + Eatery® Restaurant, and any Late Fees or Interest, for each and every preceding week, ending on Sunday, and any other fee that may be due and owing to Franchisor or any affiliate of Franchisor. I also authorize Franchisor to debit any other fees and purchases associated with the Restaurant including but not limited to the Marketing Fee, liquidated damages, non-compliance fees, the required local advertising expenditures not incurred, required purchases, as well as any other fees and amounts that may become due to Franchisor or any affiliate of Franchisor. This EFT Authorization may be executed in any number of counterparts each of which when so executed shall be an original, but all of which together shall constitute one (1) and the same instrument. This EFT Authorization may be executed on signature pages exchanged by electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. Copies of executed counterparts transmitted by such electronic transmission service shall be considered original executed counterparts for purposes of this EFT Authorization.
Franchisee Bank Information: Attach blank copy of check
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Beyond Juicery Eatery Franchise Disclosure Document, franchisees grant the company a continuing security interest in specified collateral to secure payment of fees and full performance under the Franchise Agreement. While the FDD excerpt indicates that the franchisee provides bank information and authorizes electronic fund transfers for royalty and marketing fees, it does not explicitly state that bank accounts are included as collateral.
However, the Electronic Funds Transfer (EFT) Authorization agreement requires the franchisee to attach a blank copy of a check, suggesting Beyond Juicery Eatery will have access to the franchisee's bank account information for payment purposes. This authorization allows Beyond Juicery Eatery to debit the franchisee's account for royalties, marketing fees, late fees, interest, and other fees that may be due.
Prospective franchisees should clarify with Beyond Juicery Eatery whether the security interest extends to their bank accounts and what specific assets are included as collateral. Understanding the full scope of the collateral is crucial for assessing the financial risks associated with the franchise agreement.