How long does the EFT Authorization remain in effect for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
apply any of your payments to any of your pastdue indebtedness to us. We and our affiliates may set off any amounts you or your owners owe us or our affiliates against any amounts we or our affiliates owe you or your owners.
G. METHOD OF PAYMENT.
You must make all payments due under this Agreement in the manner we designate from time to time. We may also direct you to make some or all of the payments under this Agreement to our designee or affiliate. You authorize us to debit your checking, savings, or other account automatically for all amounts due to us or our affiliates (the "EFT Authorization"). You agree to sign and deliver to us any documents we require for such EFT Authorization. Such EFT Authorization shall remain in full force and effect during the Term. We will debit the account you designate for these amounts on their due dates (or the subsequent business day if the due date is a national holiday or a weekend day). You agree to ensure that funds are available in your designated account to cover our withdrawals. If the amounts that we debit from your account are greater than the amounts you actually owe us, we will credit the excess against the amounts we otherwise would debit from your business account on the next payment due date.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the EFT Authorization remains in full force and effect during the Term of the Franchise Agreement. The document specifies that Cream is authorized to debit the franchisee's account for amounts due to them or their affiliates.
This means that Cream franchisees must authorize Cream to automatically debit their designated bank account for all payments due under the Franchise Agreement. This authorization remains valid for the entire length of the franchise term. Cream will debit the account on the due dates, adjusting for holidays or weekends.
Cream franchisees must ensure sufficient funds are available in their account to cover these withdrawals. Cream also retains the right to adjust the timing, frequency, and intervals of payments, providing at least 30 days' prior written notice. This ensures Cream can collect payments efficiently and franchisees must maintain adequate funds to avoid penalties or disruptions.