Does the authorization apply to renewal terms of the Carbones Pizzeria agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| The undersigned ("Franchisee") acknowledges that on or about, 202, Franchisee and M & T Pizza Incorporated ("Franchisor") entered into a Franchise Agreement ("Agreement") for the operation of a Carbone's Pizzeria franchise. |
|---|
| To enable the Franchisor to receive automatic payments pursuant to the Agreement, Franchisee authorizes ("Authorization") |
| Franchisor to withdraw funds from and otherwise initiate debit entries to Franchisee's bank account indicated below, and the |
| depository named below ("Depository"), to debit the same to such account. |
| Depository Name: |
| Branch: |
| City State and Zip: |
| Transit/ABA#: |
| Bank Account Name: |
| Bank Account Number: |
| Tax ID for Account: |
| This Authorization is to remain in full force and effect until the underlying obligations of the Agreement have been satisfied in |
| full or expressly released in writing by Franchisor. Franchisee expressly agrees that this Authorization will apply to any and all |
| depositories and bank accounts that Franchisee opens during the term of the Agreement and any renewal terms. Without limiting |
| the above, Franchisee acknowledges and agrees that if Franchisee closes any bank account, Franchisee will: |
| 1) |
| immediately notify Franchisor in writing; |
| 2) |
| open or otherwise establish another bank account; |
| 3) |
| execute and deliver to Franchisor all documents necessary for Franchisor to begin and continue making |
| withdrawals from such bank account/depository by ACH debiting or other electronic means. |
| Franchisee expressly acknowledges and agrees that this Authorization will be the only written authorization needed from |
| Franchisee in order to initiate debit entries/ACH debit originations to Franchisee's bank account(s) established with any |
| depository in the future. |
| Name of Franchisee(s): |
| Signature: Sample - Not for Execution |
| Print Name: |
| Title: |
| Date: |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the authorization provided by the franchisee for automatic payments to the franchisor extends to renewal terms of the franchise agreement. This means that the franchisee's initial authorization for the franchisor to withdraw funds from their bank account remains valid not only during the initial term of the agreement but also during any renewal terms.
This condition ensures that Carbones Pizzeria can continue to receive payments without requiring the franchisee to execute new authorization forms upon each renewal. The franchisee is obligated to keep the authorization current by notifying Carbones Pizzeria of any changes to their bank account and providing the necessary documentation for withdrawals from any new accounts.
Specifically, the franchisee must inform Carbones Pizzeria in writing if they close a bank account, open a new one, and provide all required documents for the franchisor to continue making withdrawals. This ongoing authorization simplifies the payment process for both parties, as it eliminates the need for repeated paperwork and ensures uninterrupted royalty payments throughout the duration of the franchise relationship, including any renewal periods.
This type of clause is fairly standard in franchise agreements to ensure consistent payment and reduce administrative overhead. However, franchisees should carefully review the terms and conditions to fully understand their obligations regarding bank account maintenance and notification procedures.