What is the purpose of the authorization provided by the Franchisee to the Franchisor for a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ch of your owners and their spouses.
EXHIBIT A
ELECTRONIC FUNDS TRANSFER/DEBIT AUTHORIZATION FORM
| 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. |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the authorization provided by the franchisee allows Carbones Pizzeria to receive automatic payments. Specifically, it enables Carbones Pizzeria to withdraw funds and initiate debit entries from the franchisee's designated bank account. This authorization ensures that Carbones Pizzeria can collect payments due under the Franchise Agreement without requiring manual transactions from the franchisee for each payment.
This authorization remains in effect until all obligations under the Franchise Agreement are fully satisfied or expressly released in writing by Carbones Pizzeria. The franchisee agrees that this authorization applies to any and all bank accounts opened during the term of the agreement and any renewal terms. This means that if a franchisee changes banks or opens new accounts, the authorization extends to those new accounts as well.
The franchisee is obligated to notify Carbones Pizzeria in writing immediately if they close any bank account. They must also open another bank account and provide all necessary documentation to allow Carbones Pizzeria to continue making withdrawals via ACH debiting or other electronic means. This ensures uninterrupted payment processing throughout the franchise term. The document states that this authorization will be the only written authorization needed from the Franchisee in order to initiate debit entries/ACH debit originations to Franchisee's bank account(s) established with any depository in the future.