How does a Craters & Freighters depositor terminate the depository's authority?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned depositor ("Depositor") hereby authorizes Craters & Freighters Franchise Company ("Company") to initiate credit and debit entries and / or credit and debit correction entries to the undersigned's checking and / or savings account(s) indicated below and the depository designated below ("Depository") to debit such account pursuant to Company's instructions and in accordance with Section 3.2 of the Franchise Agreement by and between Depositor and Company.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
Based on the 2025 Craters & Freighters Franchise Disclosure Document, the excerpt provided includes an Electronic Funds Transfer (EFT) Authorization Form, which a franchisee (referred to as "Depositor") would sign to authorize Craters & Freighters Franchise Company to initiate debit and credit entries to the franchisee's bank account. However, the document does not specify the exact procedure a Craters & Freighters depositor must follow to terminate the depository's authority.
While the excerpt details the authorization process for electronic fund transfers, it omits the steps required to revoke this authorization. This means the FDD does not explain how a franchisee can stop Craters & Freighters from making further debits or credits to their account.
A prospective Craters & Freighters franchisee should ask the franchisor for explicit details on the process for terminating the EFT authorization. This includes understanding what forms need to be filled out, who to submit them to, and the timeframe for the termination to take effect. It would also be prudent to understand if there are any penalties or fees associated with terminating the EFT authorization.