What section of the Crisp & Green agreement allows them to automatically debit a franchisee's bank account for maintenance expenses?

According to Crisp & Green's 2024 Franchise Disclosure Document, Section 6.06, titled "Automatic Clearing House Agreement," outlines the terms for debiting a franchisee's bank account. This section states that Crisp & Green can request franchisees to sign an electronic payment authorization, allowing them to automatically debit the franchisee's 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. The debits will occur on the dates payments are due.

Furthermore, the agreement stipulates that if a debit is unsuccessful due to insufficient funds, the franchisee is responsible for reimbursing Crisp & Green for all actual expenses or costs incurred within five days. This clause ensures that Crisp & Green has a mechanism to collect owed amounts efficiently and promptly, while also placing the onus on the franchisee to maintain sufficient funds in their account to cover these automatic payments.

This section does not specifically mention automatic debits for maintenance expenses. However, it does state that the automatic debit can be used for "other amounts due and owing under this Agreement and any other agreements between you and us." It is important for a prospective franchisee to clarify with Crisp & Green whether this clause could be used to cover maintenance expenses, and under what conditions such debits would be applied. Understanding the full scope of potential automatic debits is crucial for managing finances and avoiding unexpected charges.