What is the 'Payee' in the context of the Caring Senior Service authorization form?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT H TO FRANCHISE AGREEMENT
ELECTRONIC FUNDS TRANSFER AUTHORIZATION TO HONOR CHARGES DRAWN BY AND PAYABLE TO
CARING SENIOR SERVICE FRANCHISE PARTNERSHIP, L.P./PAYEE
The undersigned Depositor hereby authorizes and requests the Depository designated below to honor and to charge to the following designated account, checks, and electronic debits (collectively, "debits") drawn on such account which are payable to the above named Payee. It is agreed that Depository's rights with respect to each such debit shall be the same as if it were a check drawn and signed by the Depositor. It is further agreed that if any such debit is not honored, whether with or without cause and whether intentionally or inadvertently, Depository shall be under no liability whatsoever. This authorization shall continue in force until Depository and Payee have received at least thirty (30) days written notification from Depositor of its termination.
The Depositor agrees with respect to any action taken pursuant to the above authorization:
- (1) To indemnify the Depository and hold it harmless from any loss it may suffer resulting from or in connection with any debit, including, without limitation, execution and issuance of any check, draft or order, whether or not genuine, purporting to be authorized or executed by the Payee and received by the Depository in the regular course of business for the purpose of payment, including any costs or expenses reasonably incurred in connection therewith.
- (2) To indemnify Payee and the Depository for any loss arising in the event that any such debit shall be dishonored, whether with or without cause and whether intentionally or inadvertently.
- (3) To defend at Depositor's own cost and expense any action which might be brought by a depositor or any other persons because of any actions taken by the Depository or Payee pursuant to the foregoing request and authorization, or in any manner arising by reason of the Depository's or Payee's participation therein.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the 'Payee' in the context of the Electronic Funds Transfer Authorization form is Caring Senior Service Franchise Partnership, L.P. This form authorizes a franchisee's bank (the Depository) to honor and charge the franchisee's account for electronic debits payable to Caring Senior Service Franchise Partnership, L.P.
For a prospective Caring Senior Service franchisee, this means they are agreeing to allow Caring Senior Service to directly debit their bank account for fees and other charges. The franchisee, as the Depositor, agrees to indemnify both the Depository and Caring Senior Service (the Payee) for any losses resulting from these debits, including dishonored payments.
This authorization remains in effect until the Depository and Caring Senior Service receive at least 30 days' written notice of termination from the franchisee. This arrangement is fairly standard in franchising, as it allows for efficient and timely payment of royalties and other fees owed to the franchisor.