Is a Bft franchisee required to complete an Electronic Funds Transfer Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. All amounts due to Franchisor or its affiliates for the purchase of products, services or otherwise are due upon receipt of an invoice from Franchisor or such affiliate. Any payment or report not actually received by Franchisor or its affiliates on or before the due date is overdue.
- C. Franchisee agrees to complete and execute Franchisor's then-current form of "Electronic Funds Transfer Agreement" and any other form, including, without limitation, an "Electronic Debit Authorization" for the purpose of authorizing an electronic debit, and to submit any information required by Franchisor for such authorization. Such authorization must remain in effect throughout the Term and, following expiration or termination of this Agreement, until all amounts owed to Franchisor and its affiliates have been paid.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are required to complete and execute the franchisor's current form of "Electronic Funds Transfer Agreement." They must also complete any other required form, such as an "Electronic Debit Authorization," to authorize electronic debits. Franchisees must provide all information Bft requires for this authorization.
This authorization must remain in effect during the entire term of the Franchise Agreement. Even after the agreement expires or terminates, the authorization must stay active until the franchisee has paid all amounts owed to Bft and its affiliates.
This requirement ensures that Bft has a reliable method for receiving payments from franchisees for ongoing fees, purchases, and other financial obligations. It is a fairly standard practice in franchising to ensure timely payments and reduce administrative burdens associated with manual payment processing.