Does the Casiola Franchise Agreement require an ACH Authorization Form?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 1: Type of Fee – The above table describes fees and payments that you must pay to us, our affiliates, or that our affiliates may impose or collect on behalf of a third party. All fees are uniformly imposed for all franchises offered under this Disclosure Document, are recurring, are not refundable, and are payable to us, unless otherwise specified. At our election we may directly collect the Gross Sales of your Casiola Business and we will pre-deduct all of the fees and payments due to us, our affiliates, or our designated suppliers, and we will remit the balance to you. If applicable and, at our election, we require payment from you subject to our specification and instruction, including, our election to have fees automatically drafted from your business bank account or automatically debited or charged to your business bank account. You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 4) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates. You must deposit the Gross Sales of your Casiola Business into the designated bank accounts that are subject to our ACH authorization. As directed by us, you must install and use, at your expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, franchisees are required to sign an ACH Authorization Form. This form, referenced as Exhibit 4 in the Franchise Agreement, allows Casiola to electronically debit the franchisee's designated business bank account for all fees payable to Casiola and/or its affiliates.
This requirement enables Casiola to directly collect the Gross Sales of the franchisee's Casiola Business and pre-deduct all fees and payments owed to them, their affiliates, or designated suppliers, remitting the balance back to the franchisee. Casiola also has the option to instruct franchisees to make payments themselves, including through automatic drafts or debits from their business bank accounts.
Franchisees must deposit the Gross Sales of their Casiola Business into designated bank accounts that are subject to Casiola's ACH authorization. Additionally, franchisees are obligated to install and use pre-authorized payment, point-of-sale, credit card processing, automatic payment, automated banking, electronic debit, and/or electronic funds transfer systems as designated by Casiola, and must cover all associated service charges and fees charged by their bank to facilitate these electronic debits.