What is an 'Electronic Depository Transfer Account' and how does it relate to a Black Bear Diner franchise?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
erwise payable by Franchisor. In no circumstances shall Franchisee have any obligation hereunder for any tax assessed which is based upon the net income of Franchisor.
3.5 Electronic Transfer
Franchisor requires all Royalty Fee payments, Marketing Fund Contributions, product purchases and other amounts due to Franchisor to be paid through an Electronic Depository Transfer Account. Franchisee agrees to establish an account providing for electronic funds transfer, and Franchisor shall have access to such account for the purpose of receiving amounts due to Franchisor from Franchisee. Franchisee agrees to execute any documents as Franchisor's or Franchisee's bank requires in order to implement the Electronic Deposit Transfer Account. Franchisee agrees not to close the Electronic Deposit Transfer Account without Franchisor's approval.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, an Electronic Depository Transfer Account is defined as an account that allows Black Bear Diner to electronically withdraw funds owed to them. Black Bear Diner requires franchisees to establish this type of account to facilitate payments.
Specifically, Black Bear Diner requires all royalty fee payments, marketing fund contributions, product purchases, and any other amounts due to them to be paid through this Electronic Depository Transfer Account. This means a franchisee must set up an account that allows Black Bear Diner to directly access and withdraw the necessary funds.
The franchisee must also sign any documents required by either Black Bear Diner's bank or the franchisee's bank to set up the Electronic Deposit Transfer Account. Furthermore, the franchisee cannot close this account without first obtaining approval from Black Bear Diner. This ensures that Black Bear Diner always has a way to receive payments owed to them by the franchisee.