Does Crave require franchisees to sign an Electronic Funds Transfer Authorization?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ATTACHMENT 5 TO THE FRANCHISE AGREEMENT ELECTRONIC FUNDS TRANSFER AUTHORIZATION
AUTHORIZATION TO HONOR CHARGES DRAWN BY AND PAYABLE TO CRAVE FRANCHISING, LLC ("COMPANY")
Exhibit B ACH Form
ELECTRONIC TRANSFER AUTHORIZATION
AUTHORIZATION TO HONOR CHARGES DRAWN BY AND PAYABLE TO CRAVE WM FRANCHISING, LLC ("COMPANY")
Depositor hereby authorizes and requests Crave WM Franchising LLC ("the "Depository") to initiate debit and credit entries to Depositor's _x_checking or __ savings account (select one) indicated below drawn by and payable to the order of Company by Electronic Funds Transfer, provided there are sufficient funds in said account to pay the amount upon presentation.
Depositor agrees that the Depository's rights with respect to each such charge shall be the same as if it were a check drawn by the Depository and signed by Depositor. Depositor further agrees that if any such charge is dishonored, whether with or without cause and whether intentionally or inadvertently, the Depository shall be under no liability whatsoever.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Yes, according to Crave's 2025 Franchise Disclosure Document, franchisees are required to sign an Electronic Funds Transfer Authorization. Attachment 5 to the Franchise Agreement is specifically an "ELECTRONIC FUNDS TRANSFER AUTHORIZATION." Additionally, Exhibit B of the Addendum to the Crave Franchising, LLC Franchise Agreement is an ACH Form titled "ELECTRONIC TRANSFER AUTHORIZATION." This authorization allows Crave Franchising, LLC to initiate debit and credit entries to the franchisee's checking or savings account for payments.
The Electronic Funds Transfer Authorization ensures that Crave can directly debit fees and other payments from the franchisee's account. The franchisee authorizes Crave WM Franchising LLC to initiate these transfers, provided sufficient funds are available. This process streamlines payments and reduces the risk of late or missed payments, benefiting both the franchisee and Crave.
The document specifies that the depository's rights regarding these charges are equivalent to those of a check signed by the depositor. It also states that the depository bears no liability if a charge is dishonored, whether intentionally or inadvertently. This agreement is a standard practice in franchising, allowing for efficient and reliable financial transactions between the franchisee and franchisor.