Does Deck Medic require franchisees to sign an ACH Authorization Form?
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, franchisees are required to sign an ACH Authorization Form. This form, referenced as Exhibit 4 in the Franchise Agreement, allows Deck Medic to electronically debit the franchisee's designated business bank account for all fees payable to Deck Medic and/or its affiliates. This means that franchisees must authorize Deck Medic to automatically withdraw funds from their account to cover ongoing fees.
Deck Medic franchisees are obligated to deposit all gross sales from their Deck Medic business into bank accounts subject to this ACH authorization. Furthermore, franchisees must install and use pre-authorized payment systems, point-of-sale systems, credit card processing, and electronic funds transfer systems that Deck Medic designates. Franchisees are also responsible for covering all service charges and fees imposed by their bank to facilitate these electronic debits.
This requirement ensures that Deck Medic can efficiently collect royalty fees and other payments. It also gives Deck Medic control over the financial transactions related to the franchise. For a prospective franchisee, this means less administrative work related to paying fees, but also less control over the timing of payments. It is important to understand the implications of granting such authorization and to ensure that the designated bank account always has sufficient funds to cover the fees to avoid any penalties or disruptions.