To whom does the Cinch I.T. franchisee authorize electronic fund transfers?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
I (We, if joint account) the undersigned hereby authorize Cinch Franchise, LLC, a limited liability company, with principal offices at 27 West Mountain Street, Worcester, Massachusetts 01606, to initiate electronic transfer of funds out of my (our) primary Checking or Savings selected below at the Financial Institution indicated, for payment of Royalties or other amounts which I may owe Cinch Franchise, LLC. I (We) acknowledge that the origination of Automated Clearing House (ACH) transactions to my (our) account must comply with the provisions of the United States law. All costs and expenses, including any resulting from the dishonor by my (our) bank of any electronic funds transfer, shall be my (our) sole responsibility. This authorization is irrevocable and shall remain in effect until the termination or expiration of the underlying Franchise Agreement with Cinch Franchise, LLC. If I (we) do not have enough money in my (our) account to cover the transfer or if my (our) Financial Institution for any other reason refuses to honor a transfer, I (we) will separately pay for the charges I (we) owe under my (our) Franchise Agreement with Cinch Franchise, LLC**.**
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, franchisees authorize electronic fund transfers to Cinch Franchise, LLC. This authorization allows Cinch Franchise, LLC to electronically transfer funds from the franchisee's designated checking or savings account. These transfers are for the payment of royalties or any other amounts the franchisee may owe to Cinch Franchise, LLC.
The Electronic Funds Transfer (EFT) authorization ensures that Cinch Franchise, LLC can directly collect payments owed by the franchisee, streamlining the payment process. The franchisee acknowledges that these Automated Clearing House (ACH) transactions must comply with United States law. The franchisee is responsible for all costs and expenses, including any resulting from the bank dishonoring an electronic funds transfer.
The authorization remains in effect until the termination or expiration of the Franchise Agreement with Cinch Franchise, LLC. If the franchisee does not have sufficient funds in their account to cover the transfer, or if the financial institution refuses to honor the transfer for any reason, the franchisee is obligated to separately pay the charges owed under the Franchise Agreement with Cinch Franchise, LLC. This arrangement ensures that Cinch I.T. receives timely payments and reduces the administrative burden of collecting royalties and other fees.