Is there a deadline for submitting the EFT Authorization Agreement for Cinch I.T.?
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, the Electronic Funds Transfer (EFT) Authorization Agreement for Direct Payments remains in effect until the termination or expiration of the Franchise Agreement. The document states that the franchisee authorizes Cinch Franchise, LLC to initiate electronic transfers of funds from their primary checking or savings account for the payment of royalties or other amounts owed to Cinch Franchise, LLC. This authorization is irrevocable, meaning it cannot be canceled during the term of the Franchise Agreement.
This arrangement ensures that Cinch I.T. can collect payments efficiently and reliably throughout the duration of the franchise agreement. The franchisee is responsible for all costs and expenses, including those resulting from any dishonored electronic funds transfer due to insufficient funds or other reasons. If a transfer is refused, the franchisee is obligated to separately pay the charges owed under the Franchise Agreement.
While the authorization remains in effect until the agreement's termination or expiration, there is no explicit deadline mentioned for the initial submission of the EFT Authorization Agreement. It is implied that this agreement needs to be in place for Cinch I.T. to receive royalty and other payments electronically throughout the franchise term. A prospective franchisee should confirm with Cinch I.T. when this agreement is due to ensure compliance with their payment procedures.