What is the definition of EFT as it relates to payments to Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
under this Agreement. Any payment or report not actually received by us on or before such date will be deemed overdue. Time is of the essence with respect to all payments you are obligated hereunder. All unpaid obligations under this Agreement will bear interest from the date due until paid at the rate of five percent (5%) per month or the maximum rate allowed by applicable law, whichever is less.
- H. Electronic Fund Transfers. Unless we notify you otherwise from time to time, all payments due to us under this Agreement will be paid via electronic funds transfer ("EFT"). You agree to sign all documents necessary to permit us to withdraw funds from your designated bank account by EFT in the amounts due under this Agreement from time to time, at the time or times that such amounts become due and payable under the terms of this Agreement. If you fail to timely provide us with a Net Sales Report, then we may process an EFT for the subject week based on the most recent Net Sales Report you provided to us; provided that if it is subsequently determined (i) that the actual amount of the fee due was more than the amount of the EFT, then we will be entitled to withdraw additional funds through EFT from your designated bank account for the difference; or (ii) that the actual amount of the fee due was less than the amount of the EFT, then we will credit the excess amount to the payment of your future obligations. Should any EFT not be honored by your bank for any reason, you will be responsible for the payment that was the subject of the EFT, plus our then-current service charge, which may include any service charge due to the bank.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, EFT stands for electronic funds transfer. Unless Cicis notifies a franchisee otherwise, all payments due to Cicis under the Franchise Agreement will be paid via EFT. As a Cicis franchisee, you must sign all necessary documents to allow Cicis to withdraw funds from your designated bank account via EFT. These withdrawals will be for the amounts due under the agreement, taken at the times such amounts are due and payable.
If a Cicis franchisee fails to provide a timely Net Sales Report, Cicis may process an EFT for the week based on the most recent Net Sales Report provided. If the actual amount due is more than the EFT amount, Cicis can withdraw the difference via EFT. Conversely, if the actual amount is less, Cicis will credit the excess to the franchisee's future obligations.
Should an EFT not be honored by the franchisee's bank for any reason, the franchisee is responsible for the payment, plus Cicis's service charge, which may include any bank service charges. Overdue payments will accrue interest at a rate of 5% per month or the maximum rate allowed by applicable law, whichever is less. Cicis also requires franchisees to authorize them to withdraw payments via EFT for all products automatically shipped by Cicis's designated suppliers on or before the payment date on the supplier's invoice.