What authorization must Dq Treat franchisees provide to Client for ACH transactions?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
In the event that any debit to Participating Franchisee or Sub- Franchisee Account is 1.5 returned for any reason, including but not limited to, insufficient funds, Participating Franchisee or Sub-Franchisee authorizes Client and its service providers, acting on behalf of Client, to initiate a debit to the Participating Franchisee or Sub-Franchisee Account as set forth in the form of Exhibit A for the original debit amount plus any associated returned item fees (including, but not limited to the "Returned Item Fee" set forth on Exhibit C hereto).
Nothing herein shall be construed to limit Client (as third party beneficiaries under this Participation Agreement) or GIFT's ability to collect any amounts owed under this Participation Agreement, and Client (as third party beneficiaries under this Participation Agreement) and GIFT expressly reserve the right to exercise any and all rights and remedies available under applicable law.
- License.
GIFT may provide or permit Operated Locations, Participating Franchisee or Sub-Franchisee to 1.6 access computer software, enhancements thereto and updates, new releases, and copies thereof ("Software").
All right, title and interest in and to all Software will remain in GIFT or its suppliers and no title is transferred to Operated Locations, Participating Franchisee or Sub- Franchisee.
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, franchisees must provide Client with an ACH (Debit and Credit) Authorization. This authorization allows Client and its service providers to initiate ACH debit and credit entries to the franchisee's deposit account for card transactions, adjustments, corrections, and other transfers related to the Participation Agreement, including program fees. The authorization also covers debits for returned items and associated fees.
The ACH Authorization, as detailed in Exhibit A, requires the franchisee to provide their bank name, account number, account title, and ABA routing number. The franchisee must also certify that the authorized officer has the authority to bind the Operated Locations, Participating Franchisee, or Sub-Franchisee. A voided check should be attached to the authorization form; however, if only starter checks are available, a bank letter validating the business checking account details can be provided instead.
This authorization ensures that Dq Treat's Client can efficiently manage financial transactions related to the franchise operations. It is essential for franchisees to understand the terms of this authorization, including the fees associated with ACH transactions and returned items, as outlined in Exhibit C. The ACH Settlement Services Fee is $0.10 for each debit or credit entry, and the ACH Returned Item Fee is $25.00 for each returned item, unless the return is caused by the Client's service provider.
By signing the ACH Authorization, the franchisee agrees to comply with applicable laws and the rules and regulations of the National Automated Clearing House Association. This agreement confirms the franchisee's authorization for Client and its service providers to manage debits and credits to their account as necessary for card transactions and other transfers under the Participation Agreement.