For how long must the Electronic Funds Transfer authorization remain in effect for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, the Electronic Funds Transfer (EFT) authorization must remain in effect throughout the entire term of the Franchise Agreement. This obligation extends beyond the agreement's expiration or termination, remaining valid until all outstanding amounts owed to Bft and its affiliates are fully paid.
For a prospective Bft franchisee, this means that they must maintain an active EFT authorization for the duration of their 10-year franchise term, and potentially longer if there are any outstanding financial obligations at the time of termination or expiration. This ensures that Bft can collect payments due for products, services, or other obligations without interruption.
This requirement is fairly standard in franchising, as it provides the franchisor with a reliable method of payment collection. Franchisees should ensure they understand all payment terms and obligations to avoid any issues with their EFT authorization and potential penalties for late or missed payments. It is important to note that Bft also has the right to charge interest on overdue amounts, potentially along with attorney's fees and other costs associated with collecting overdue payments.