Does the Burros Fries franchise agreement include a schedule for an authorization agreement for prearranged payments?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
SCHEDULE 1 AUTHORIZATION AGREEMENT FOR PREARRANGED PAYMENTS (DIRECT DEPOSIT)
"COMPANY") and BY AND BETWEEN BURROS & FRIES FRANCHISE, INC., a California corporation (the ("FRANCHISEE") dated , 2022. COMPANY's instructions. The undersigned depositor ("DEPOSITOR") hereby authorizes the Company to initiate debit entries and/or credit correction entries to the undersigned's checking and/or savings account(s) indicated below and the depository designated below ("DEPOSITORY") to debit such account pursuant to DEPOSITORY Branch Address City, State and Zip Code Bank Account Number Transit/ABA Number amount of such entry credited to such account by the date on which DEPOSITORY sent to DEPOSITOR may have under federal and state banking laws. notification from COMPANY and DEPOSITOR of the DEPOSITOR's termination of such authority in such time and in such manner as to afford DEPOSITORY a reasonable opportunity on which to act. If an erroneous debit entry is initiated to DEPOSITOR's account, DEPOSITOR shall have the right to have the DEPOSITORY, if (a) within 15 calendar days following DEPOSITOR a statement of account or a written notice pertaining to such entry or (b) 45 days after posting, whichever occurs first, DEPOSITOR shall have sent to DEPOSITORY a written notice identifying such entry, stating that such entry was in error and requesting DEPOSITORY to credit the amount thereof to such account. These rights are in addition to any rights DEPOSITOR DEPOSITORY
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the franchise agreement includes a Schedule 1 titled "AUTHORIZATION AGREEMENT FOR PREARRANGED PAYMENTS (DIRECT DEPOSIT)." This schedule outlines the terms and conditions under which the franchisee (referred to as "DEPOSITOR") authorizes Burros & Fries Franchise, Inc. (referred to as "COMPANY") to initiate debit and/or credit entries to the franchisee's checking or savings account. This agreement ensures that payments can be made directly from the franchisee's account to Burros Fries.
The authorization includes details about the depository institution, such as the branch address, bank account number, and transit/ABA number. It also specifies that the depository is authorized to debit the franchisee's account based on instructions from Burros Fries. The franchisee retains certain rights, including the right to receive notification from Burros Fries and to terminate the authorization, provided the depository is given reasonable notice to act on the termination.
Furthermore, the schedule addresses procedures for handling erroneous debit entries. If an error occurs, the franchisee has the right to notify the depository within a specified timeframe—either 15 calendar days following receipt of a statement or written notice pertaining to the entry, or 45 days after posting—to request a credit to their account. These rights are in addition to any other rights the franchisee may have under federal and state banking laws. This arrangement provides a structured and agreed-upon method for handling payments between the franchisee and Burros Fries, while also protecting the franchisee's rights in case of errors.