What is the purpose of the payment authorization form attached as Exhibit A to the Chesters agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: **RECEIPTS]
Licensee hereby authorizes Chester's International, LLC or a third party designated by Chester's International LLC to charge the designated credit card and/or Licensee hereby authorizes Chester's to initiate debit entries to the Account indicated above at the bank or other financial institution named above and to debit the same to such account. Licensee acknowledges that the origination of the ACH transactions to the Account must comply with the provisions of U.S. Law.
EXHIBIT C
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to the 2025 Chesters Franchise Disclosure Document, Exhibit A, also known as the Chester's Payment Authorization Form, serves the purpose of authorizing Chester's International, LLC, or a designated third party, to charge a franchisee's designated credit card or initiate debit entries to their specified bank account. This authorization allows Chesters to debit the account. The franchisee must ensure that all ACH transactions comply with U.S. Law.
This payment authorization form is a standard practice in franchising, allowing the franchisor to collect various fees and payments efficiently. For a prospective Chesters franchisee, this means they will be agreeing to allow Chesters to directly debit their account for fees and other charges incurred during the franchise agreement. It is crucial for the franchisee to understand what these fees are and when they will be charged to avoid any unexpected debits.
It is important for a potential Chesters franchisee to carefully review the terms and conditions outlined in the franchise agreement regarding payment obligations. Understanding the instances in which Chesters will utilize this payment authorization is essential for managing their finances and maintaining a transparent business relationship with the franchisor. Franchisees should also confirm whether they can revoke this authorization under certain conditions and what the process for doing so would be.