What form must a Carls franchisee sign and deliver concurrent with the execution of the Franchise Agreement in connection with electronic funds transfers?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
In connection with payment of the royalty fee, advertising fees, or other amounts payable under this Agreement by electronic funds transfer, Franchisee shall: (1) comply with procedures specified by CJR in the OPM or otherwise in writing; (2) concurrent with the execution of this Agreement, sign and deliver the ACH form attached as Appendix H; (3) perform those acts and sign and deliver any other documents as may be necessary to accomplish payment by electronic funds transfer as described in this Section 8.E.; and (4) make sufficient funds available in the Account for withdrawal by electronic funds transfer no later than the Due Date for payment thereof.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, a franchisee must sign and deliver an ACH form concurrent with the execution of the Franchise Agreement in connection to electronic funds transfers. This form is attached as Appendix H in the FDD. This requirement is related to the payment of royalty fees, advertising fees, or other amounts payable under the agreement.
Carls specifies that franchisees must also comply with procedures outlined in the Operations and Procedures Manual (OPM) or in writing, and perform any acts and sign any documents necessary to facilitate payment via electronic funds transfer. Franchisees must ensure sufficient funds are available in their account for withdrawal by the due date.
Failure to maintain sufficient funds in the designated account constitutes a default of the Franchise Agreement. The agreement explicitly states that franchisees are not entitled to withhold any payments, including royalty fees or advertising contributions, due to any alleged non-performance by Carls or for any other reason.