Can Crisp & Green debit a franchisee's bank account for maintenance expenses?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.06 Automatic Clearing House Agreement. You agree, at our request, to sign an electronic payment authorization agreement in a form we or your bank prescribe that authorizes us to automatically debit your bank account, on the dates payments are due, for any royalty fees, marketing fees, technology fees, rents and other amounts due and owing under this Agreement and any other agreements between you and us. You agree to reimburse us within five (5) days for any and all actual expenses or costs incurred if the debit is not successful due to your failure to have sufficient funds available.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees may be required to sign an electronic payment authorization that allows Crisp & Green to automatically debit their bank account for various fees. These fees include royalty fees, marketing fees, technology fees, rents, and any other amounts due under the Franchise Agreement or other agreements between the franchisee and Crisp & Green. This debiting would occur on the dates payments are due.
If a franchisee fails to maintain sufficient funds in their account, resulting in an unsuccessful debit, the franchisee is responsible for reimbursing Crisp & Green for any actual expenses or costs incurred due to the failed debit. The reimbursement amount is capped at $30 and must be paid within five days.
While the FDD states that Crisp & Green can debit a franchisee's account for a variety of fees, it does not specifically mention maintenance expenses. However, the agreement does state that the debit can be used for "other amounts due and owing under this Agreement and any other agreements between you and us," which could potentially include maintenance expenses if outlined elsewhere in the agreement.