How does a Buona franchisee terminate the Automated Clearing House Payment Authorization?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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Attachment A COLLATERAL ASSIGNMENT OF LEASE
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EXHIBIT C
AUTOMATED CLEARING HOUSE PAYMENT AUTHORIZATION FORM
Franchisee Name Business No. Franchisee Mailing Address (street) Franchisee Phone No. Mailing Address (city, state, zip) Contact Name, Address and Phone number (if different from above) Fax E-mail No. Address Bank Information: Account Bank Bank Mailing Address (street, city, state, zip) Checking Savings Bank Bank Account Routing No. No. (check (9 one) digits) Bank Mailing Address (city, state, zip) Bank Phone No. Authorization: Franchisee hereby authorizes liability company ("Franchisor") to initiate debit above and Franchisee authorizes the Bank to accept Franchisee's account. Each debit shall be made from fees payable to Franchisor pursuant to any agreement cover any purchases of goods or services from agrees to be bound by the National Automated administration of these debit entries. Debit entries authorization is to remain in full force and effect from Franchisee of its termination in such time and Bank a reasonable opportunity to act on it.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Automated Clearing House (ACH) payment authorization remains in effect until Buona receives written notification from the franchisee regarding its termination. This notification must be provided in a manner that allows Buona and the bank a reasonable opportunity to act on it. The franchisee is also required to notify Buona of any changes to the information contained in the authorization form at least 30 days before the change takes effect.
This means that a Buona franchisee must proactively send a written notice to Buona to terminate the ACH payment authorization. The franchisee should ensure that the notification is sent with enough lead time for Buona and the bank to process the termination request. Failure to provide adequate notice could result in continued debits to the franchisee's account.
Furthermore, the franchisee is responsible for keeping the information on the authorization form up to date. Any changes, such as a new bank account, must be communicated to Buona at least 30 days in advance. This ensures that payments are processed correctly and avoids any potential issues with the ACH transactions. The ACH authorization form is included as Exhibit C to the Franchise Agreement.
Prospective franchisees should note the importance of adhering to these requirements to maintain control over their payments to Buona and avoid any disruptions in their banking relationships.