What does the Franchisee expressly acknowledge and agree to regarding the need for further written authorization for a Carbones Pizzeria franchise?
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 originat |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the franchisee expressly acknowledges and agrees that the provided authorization for automatic payments will be the only written authorization needed to initiate debit entries or ACH debit originations to the franchisee's bank accounts. This applies to any bank account established with any depository in the future.
This means that once the franchisee provides the initial authorization for automatic payments, Carbones Pizzeria does not need to obtain additional written authorizations for future debit entries to any of the franchisee's bank accounts. This simplifies the payment process for both parties, as it eliminates the need for repeated paperwork and approvals for each transaction.
However, it is crucial for the franchisee to understand the implications of this agreement. By signing the authorization, the franchisee grants Carbones Pizzeria ongoing access to their bank accounts for debit entries. The franchisee must therefore ensure that sufficient funds are always available to cover the required payments. Additionally, the franchisee should carefully monitor their bank statements to detect and address any unauthorized or incorrect debit entries promptly. If a franchisee closes a bank account, they must notify Carbones Pizzeria in writing, open a new account, and provide all necessary documentation for withdrawals from the new account.
This type of authorization is common in franchising, as it streamlines the payment of royalties, advertising fees, and other ongoing obligations. However, franchisees should always carefully review the terms and conditions of such authorizations to fully understand their rights and responsibilities.