What authorization form is required for electronic funds transfer with Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall execute the Electronic Funds Transfer/Debit Authorization attached to this Agreement as Exhibit A.
Franchisor reserves the right, without notice to Franchisee, to independently access the Restaurant's accounting and financial systems and data or any accounting or financial systems used or required by Franchisor for the Carbone System to determine Gross Sales and fees due to Franchisor under this Agreement, and Franchisee shall grant Franchisor access to all such accounting and financial systems and data.
If Franchisee fails to timely report Gross Sales for any period, withholds Franchisor's access to accounting and financial systems or data, or otherwise fails to pay amounts due to Franchisor, Franchisor may debit Franchisee's account for: (i) one hundred ten percent (110%) of the Royalty fees and Advertising Contributions last paid by Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees must execute the Electronic Funds Transfer/Debit Authorization form, which is attached to the Franchise Agreement as Exhibit A. This authorization allows Carbones Pizzeria to collect all amounts due under the agreement via electronic funds transfer or debit.
Carbones Pizzeria also reserves the right to independently access the restaurant's accounting and financial systems to determine gross sales and fees due. Franchisees are obligated to grant access to these systems and data. If a franchisee fails to report gross sales, withholds access to accounting systems, or fails to pay amounts due, Carbones Pizzeria may debit the franchisee's account for 110% of the royalty fees and advertising contributions last paid by the franchisee.
This electronic funds transfer authorization is a standard practice in franchising, allowing franchisors to ensure timely payments and monitor sales data. Prospective Carbones Pizzeria franchisees should carefully review Exhibit A to understand the terms and conditions of the electronic funds transfer authorization, including the frequency and amounts of debits, as well as the circumstances under which Carbones Pizzeria may access their financial systems.