Is a Buona franchisee responsible for ACH transfer fees or similar charges imposed by the bank?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay for all purchases from, or fees owed to Franchisor or its Affiliates by automated clearing house ("ACH"), as Franchisor may require, or by other means as set forth in this Agreement or in the Manuals.
Franchisor or its Affiliates shall have the right to withdraw the entire amount of any amounts owed to Franchisor or its Affiliates from Franchisee's designated bank account ("ACH Account") in accordance with the terms set forth in the Manuals, as modified by Franchisor periodically.
Franchisee shall, upon execution of this Agreement or any time after at Franchisor's request, execute all documents or forms as Franchisor determines are necessary for Franchisor to process ACH withdrawals from Franchisee's ACH Account for payments due, including the ACH Authorization Form attached hereto as Exhibit C. Franchisee agrees that it shall be responsible for any ACH transfer fee or similar charge imposed by the bank.
Should any ACH not be honored by Franchisee's bank for any reason, Franchisee shall be responsible for that payment plus any service charge applied by Franchisor and the bank.
Franchisee agrees that any time an ACH transaction is not honored, Franchisee shall pay to Franchisor its then-current non-sufficient funds fee.
Franchisee's failure to maintain, at all times, an ACH Account in accordance with this Agreement shall be a material default of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are responsible for any ACH transfer fees or similar charges imposed by their bank. Buona requires franchisees to pay for all purchases and fees via automated clearing house (ACH), as they may require, or by other means detailed in the franchise agreement or manuals.
Buona, or its affiliates, has the right to withdraw the full amount of any owed payments from the franchisee's designated bank account (ACH Account). Franchisees must execute all necessary documents for Buona to process these ACH withdrawals.
Furthermore, if an ACH payment is not honored by the franchisee's bank for any reason, the franchisee is responsible for the original payment amount, in addition to any service charges applied by both Buona and the bank. If an ACH transaction is not honored, the franchisee must also pay Buona's then-current non-sufficient funds fee. Maintaining a functional ACH Account is a material requirement of the franchise agreement, and failure to do so constitutes a default.