Is Deck Medic permitted to automatically draft fees from my business bank account?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 1: Type of Fee – The above table describes fees and payments that you must pay to us, our affiliates, or that our affiliates may impose or collect on behalf of a third party. All fees are uniformly imposed for all franchises offered under this Disclosure Document, are recurring, are not refundable, and are payable to us, unless otherwise specified. Payment is subject to our specification and instruction, including, our election to have all fees automatically drafted from your business bank account or automatically debited or charged to your business bank account. You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 4) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates. You must deposit the Gross Sales of your Deck Medic Business into the designated bank accounts that are subject to our ACH authorization. You must install and use, at your expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that
we designate and require in the operation of your Deck Medic Business. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic has the right to automatically draft fees from a franchisee's business bank account. The FDD specifies that payment of fees is subject to Deck Medic's instructions, including the option to have fees automatically drafted or debited from the franchisee's bank account.
As a Deck Medic franchisee, you will be required to sign an ACH Authorization Form, which is included as Exhibit 4 in the Franchise Agreement. This form permits Deck Medic to electronically debit your designated bank account for all fees payable to them or their affiliates. The FDD also states that franchisees must deposit their Gross Sales into bank accounts subject to ACH authorization.
Furthermore, Deck Medic requires franchisees to install and use pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit, and/or electronic funds transfer systems that Deck Medic designates. Franchisees are responsible for all service charges and fees charged by their bank to allow Deck Medic to electronically debit their account. The royalty fee, calculated as 6% of monthly Gross Sales, and the technology fee, up to $500 per month, will be automatically debited from your bank account by ACH or other means designated by Deck Medic.