What is the purpose of providing the Transit/ABA# on the authorization form 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 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 Transit/ABA# is required on the authorization form to enable the franchisor, M & T Pizza Incorporated, to receive automatic payments from the franchisee. By providing this information, the franchisee authorizes Carbones Pizzeria to withdraw funds from the franchisee's bank account. This setup allows the franchisor to debit the franchisee's account for payments due under the Franchise Agreement.
The authorization remains in effect until the franchisee's 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 bank accounts opened during the term of the agreement, including any renewal terms. If a franchisee closes a bank account, they must notify Carbones Pizzeria in writing, open a new account, and provide all necessary documentation for the franchisor to continue making withdrawals.
This authorization serves as the only written authorization needed for Carbones Pizzeria to initiate debit entries or ACH debit originations to the franchisee's bank accounts. The authorization form includes fields for the depository name, branch, city, state, zip code, transit/ABA#, bank account name, bank account number, and tax ID for the account, ensuring all necessary information is provided for the automatic payment setup.