What authorization does a Dq Treat franchisee confirm by executing the Participation Agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
fraudulent, improper or otherwise unauthorized.
- 1.3 IVR; Help Desk. GIFT will operate an IVR, 24 hours per day, 7 days per week for the processing of mutually agreed transactions. "IVR" means an automated interactive voice response system accessible from the U.S. and Canada through a toll free telephone number. GIFT shall provide the following help desks during the term of this Agreement: (i) a Level I help desk that will be available twenty-four (24) hours per day, seven (7) days per week (Christmas Day excluded), for the processing of transactions pursuant to this Agreement, which shall provide Cardholder and restaurant support from a toll free telephone number; and (ii) a Level II help desk that will be available Monday through Friday, 8:00 am to 8:00 pm ET, which shall provide restaurant support from a toll free telephone number that will be provided to Client.
- 1.4 Settlement. GIFT will, through its Agents, and as Processor, provide certain settlement services to Client and Operated Locations, Participating Franchisee or Sub-Franchisee (the "ACH Settlement Services") through debits and credits to the Operated Locations, Participating Franchisee or Sub-Franchisee Account (as defined below) and the designated accounts of Client (the "Merchant Account") for the net value of Card Transactions. Operated Locations, Participating Franchisee or Sub-Franchisee must provide Client
with an ACH Authorization in the form of Exhibit A hereto, and by executing this Participation Agreement, hereby confirms its authorization of Client and its service providers (including GIFT and Affiliated Processor, acting on behalf of Client) to initiate debit and credit entries to the Operated Locations, Participating Franchisee or Sub-Franchisee Account as necessary or appropriate to effect any Card transaction and all adjustments and corrections thereto, and as necessary or appropriate to effect any other transfer contemplated by this Participation Agreement. Operated Locations, Participating Franchisee or Sub-Franchisee shall comply with and be bound by any applicable law and the rules and regulations of the National Automated ClearingHouse Association as in effect from time to time.
- Returned Items.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, by executing the Participation Agreement, a franchisee authorizes Client (DQ GC Inc.) and its service providers to initiate Automated Clearing House (ACH) debit and credit entries to the franchisee's deposit account. This authorization allows for debits and credits necessary to process card transactions, adjustments, corrections, and any other transfers outlined in the Participation Agreement, including program fees such as shipping, fulfillment, merchandising materials, and card fees.
In the event that a debit is returned for any reason, such as insufficient funds, the franchisee authorizes Client and its service providers to debit the account for the original amount plus any associated returned item fees. The franchisee also agrees to comply with all applicable laws and the rules and regulations of the National Automated Clearing House Association.
This authorization remains in effect until 30 days after the Participation Agreement is terminated, provided Dq Treat receives written notification from the franchisee. The notification must be timely enough to allow Dq Treat and its service providers a reasonable opportunity to act on the termination. However, the termination of the authorization does not relieve the franchisee of any obligations or liabilities that occurred before the termination date. As part of the ACH authorization, the franchisee must provide bank name, account number, account title, and ABA routing number, along with a voided check or a bank letter validating the business checking account information.