Who is responsible for 'insufficient funds' charges for a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
You must sign and deliver to us the documents that we periodically require to authorize us to debit your business checking account automatically for the Royalty, National Marketing Fee, and other amounts due under the Franchise Agreement or any related agreement between us (or our affiliates) and you. If we institute an automatic debit program for the Franchised Restaurant, we will debit your account for the Royalty and other amounts on or after the Payment Day, based on the Gross Sales for the previous month. You must make the funds available for withdrawal by electronic transfer before each due date. In our automatic debit program, we may require you to procure, at your expense, overdraft protection for your business checking account in an amount that we specify. You must reimburse us for any "insufficient funds" charges and related expenses that we incur for any checks that we receive from you or your failure to maintain sufficient funds in your automatic debit account.
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the franchisee is responsible for reimbursing the franchisor for any 'insufficient funds' charges. This applies both to checks received from the franchisee and to situations where the franchisee fails to maintain sufficient funds in their automatic debit account.
Crisp & Green requires franchisees to sign documents authorizing automatic debits from their business checking account for royalties, national marketing fees, and other amounts due under the Franchise Agreement. These debits occur on or after the Payment Day, based on the previous month's Gross Sales.
To participate in the automatic debit program, Crisp & Green may require franchisees to procure overdraft protection for their business checking account, at the franchisee's expense, in an amount specified by Crisp & Green. This requirement aims to prevent insufficient funds situations. Ultimately, the franchisee bears the financial responsibility for any insufficient funds charges and related expenses incurred by Crisp & Green due to the franchisee's actions or omissions.