Can Carbones Pizzeria collect amounts due via electronic funds transfer/debit?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. Franchisor may collect all amounts due under this Agreement via electronic funds transfer/debit.
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, Carbones Pizzeria has the right to collect all amounts due under the Franchise Agreement via electronic funds transfer or debit. As a condition of the agreement, the franchisee must execute an Electronic Funds Transfer/Debit Authorization form, which is included as Exhibit A to the agreement.
Furthermore, Carbones Pizzeria reserves the right to independently access the restaurant's accounting and financial systems to determine gross sales and fees due, without prior notice to the franchisee. The franchisee is obligated to grant Carbones Pizzeria access to all such financial data.
If a franchisee fails to report gross sales in a timely manner, withholds access to accounting systems, or otherwise fails to pay amounts due, Carbones Pizzeria can debit the franchisee's account for 110% of the royalty fees and advertising contributions last paid. This clause serves as a penalty for non-compliance and ensures Carbones Pizzeria can recover owed amounts.