How must a Big Apple Bagels franchisee make payments?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- f. Electronic Bank Draft Plan.
Franchisee shall make payments of the royalty fee, Marketing Fund contributions, and all other payments due Franchisor through an Electronic Bank Draft Plan on a bank account Franchisee is required to establish and maintain for the purpose of making payments to Franchisor.
Franchisee shall execute such documents as may be required from time to time by Franchisor to permit Franchisor to withdraw from Franchisee's general operating checking account the amounts due Franchisor.
The form authorizing the electronic bank draft is attached as Rider D.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, franchisees are required to make payments via an Electronic Bank Draft Plan. This applies to royalty fees, Marketing Fund contributions, and all other payments due to Big Apple Bagels.
To facilitate this payment method, the franchisee must establish and maintain a bank account specifically for making payments to Big Apple Bagels. The franchisee is also required to execute any documents necessary to allow Big Apple Bagels to withdraw the amounts due from the franchisee's general operating checking account. A form authorizing the electronic bank draft is attached as Rider D.
If a franchisee fails to make payments on time, the overdue amount will accrue interest. The interest rate will be the lower of 2% per month or the highest contract rate allowed by local law, compounded monthly. However, Big Apple Bagels accepting late payments or charging interest does not constitute an agreement to extend credit to the franchisee, and failure to pay amounts when due can result in termination of the Franchise Agreement.