What form must a Chop5 Salad Kitchen franchisee sign to allow electronic debits?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
You must sign an ACH Authorization Form (attached to the Franchise Agreement as ATTACHMENT "E") permitting us to electronically debit your designated bank account for all amounts owed to us and our affiliates (other than fees due within 15 days after signing the Franchise Agreement). You must deposit all Gross Sales into the bank account and ensure sufficient funds are available for withdrawal before each due date.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, a franchisee must sign an ACH Authorization Form to permit the company to electronically debit their bank account. This form is included as Attachment E to the Franchise Agreement.
This requirement means that as a Chop5 Salad Kitchen franchisee, you will authorize the franchisor to automatically withdraw funds from your designated bank account to cover fees and other amounts owed, excluding fees due within 15 days after signing the Franchise Agreement. It is essential to maintain sufficient funds in the account to cover these debits.
This is a fairly standard practice in franchising, as it ensures timely payments to the franchisor. The franchisee must deposit all Gross Sales into the bank account and ensure sufficient funds are available for withdrawal before each due date. Franchisees should carefully review the ACH Authorization Form and understand the terms and conditions before signing.