What documents must a Crave franchisee execute to allow Crave to process EFTs from their designated bank account?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
d acknowledge, however, that any such contribution of these amounts by us to the Brand Development Fund does not in any manner diminish or eliminate your obligation to pay the Brand Development Fee.
4.4 Payments to Us
By executing this Agreement, you agree that we shall have the right to withdraw funds from your designated bank account by electronic funds transfer ("EFT") in the amount of the Royalty Fee, Brand Development Fee, and any other payments due to us and/or our affiliates. If you do not provide the Royalty Report when required, we may debit your account for one hundred twenty percent (120%) of the last Royalty Fee and Brand Development Fee (if applicable) that we debited. If the Royalty Fee and Brand Development Fee we debit are less than the Royalty Fee and Brand Development Fee you actually owe to us, once we have been able to determine the Franchised Business' true and correct Gross Sales, we will debit your account for the balance on a day we specify. If the Royalty Fee and Brand Development Fee we debit are greater than the Royalty Fee and Brand Development Fee you actually owe, we will credit the excess against the amount we otherwise would debit from your account during the following week. You shall, upon execution of this Agreement or at any time thereafter at our request, execute such documents or forms as we or your bank determine are necessary for usto process EFTsfrom your designated bank account for the payments due hereunder. If payments are not received when due, interest may be charged by us in accordance with Section 4.5 below. Upon written notice to you, you may be required to pay such fees directly to us in lieu of EFT, at our sole discretion.
4.5 Interest on Overdue Amounts
You shall not be entitled to withhold payments due us under this Agreement on grounds of alleged non-performance by us hereunder. Any payment or report not actually received by us on or before its due date shall be deemed overdue. Time is of the essence with respect to all payments to be made by you to us. All unpaid obligations under this Agreement shall bear interest from the date due until paid at the greater of (i) eighteen percent (18%) per annum; or (ii) the maximum rate allowed by applicable law.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee must execute specific documents or forms to allow Crave to process Electronic Funds Transfers (EFTs) from their bank account. Upon execution of the franchise agreement, or at any time after at Crave's request, the franchisee must complete the documents or forms that Crave or the franchisee's bank deem necessary for Crave to process EFTs for payments due under the agreement. These payments include the Royalty Fee and Brand Development Fee, as well as any other payments owed to Crave or its affiliates.
If a franchisee fails to provide the required Royalty Report, Crave has the right to debit the franchisee's account for 120% of the last Royalty Fee and Brand Development Fee debited. If the actual Royalty Fee and Brand Development Fee owed are different from the amount debited, Crave will either debit the account for the balance owed or credit the excess to the franchisee's account during the following week.
Exhibit B of the Crave Franchise Disclosure Document includes an ACH form titled "ELECTRONIC TRANSFER AUTHORIZATION" which the franchisee must complete. This form authorizes Crave to initiate debit and credit entries to the franchisee's checking or savings account for payments due to Crave. The franchisee agrees that the bank's rights regarding these charges are the same as if they were a check drawn by the bank and signed by the franchisee. The bank bears no liability if any charge is dishonored, whether intentionally or inadvertently.