What is the significance of the signature on the authorization form for a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 Carbones Pizzeria's 2025 Franchise Disclosure Document, the signature on the authorization form allows the franchisor to withdraw funds automatically from the franchisee's bank account. This authorization enables M & T Pizza Incorporated, the franchisor, to debit the franchisee's account for payments due under the Franchise Agreement.
The authorization remains in effect for the entire term of the Franchise Agreement, including any renewal terms, until all obligations are satisfied or expressly released in writing by Carbones Pizzeria. The franchisee must notify Carbones Pizzeria in writing if they close the bank account and must provide the details for a new account so that the automatic withdrawals can continue without interruption.
The document specifies that this signed authorization will be the only written authorization needed for initiating debit entries to the franchisee's bank accounts in the future. The authorization form includes fields for the depository name, branch, city, state, zip code, transit/ABA number, bank account name and number, and the tax ID for the account, along with spaces for the franchisee's name, signature, printed name, title, and date.
It is important to note that the signature line in the provided sample form is marked "Sample - Not for Execution." This indicates that the document included in the FDD is for illustrative purposes only, and a franchisee would need to sign a finalized version of the authorization form to authorize automatic payments to Carbones Pizzeria.