What section of the Craters & Freighters Franchise Agreement is the EFT authorization related to?
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)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Electronic Funds Transfer (EFT) authorization form is related to Section 3.2 of the Franchise Agreement. The EFT authorization form allows Craters & Freighters to initiate credit and debit entries to the franchisee's checking or savings account.
Section 3.2 of the Franchise Agreement, as referenced in the EFT authorization, likely pertains to the payment of royalty fees. The franchisee authorizes Craters & Freighters to debit their account for these fees according to the instructions provided by Craters & Freighters. This arrangement ensures that royalty payments are made in a timely and consistent manner.
For a prospective Craters & Freighters franchisee, this means they will need to complete the EFT authorization form to allow for automatic payments of royalties. Understanding the terms of Section 3.2 is crucial, as it outlines the specific obligations regarding royalty payments and how they are calculated. Franchisees should carefully review this section to fully understand their financial responsibilities to Craters & Freighters.