What authorization does a Dq Treat Operated Location, Participating Franchisee and Sub-Franchisee give to GIFT regarding ACH debit and credit entries?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- ACH Debit Authorization. Operated Locations, Participating Franchisee and Sub-Franchisee authorizes GIFT and its 3. service providers, acting on behalf of GIFT, to initiate ACH debit and credit entries to the deposit account indicated on Exhibit A to the Franchisee and Sub-Franchisee Participation Agreement, and to debit and credit the same to such account, as necessary or appropriate to effect any charge, fee or other transfer contemplated by this Addendum and all adjustments and corrections thereto. Operated Locations, Participating Franchisee and Sub-Franchisee shall comply with Applicable Law and the rules and regulations of the National Automated Clearing House Association as in effect from time to time.
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 Dq Treat's 2025 Franchise Disclosure Document, Operated Locations, Participating Franchisees, and Sub-Franchisees authorize GIFT and its service providers to initiate ACH debit and credit entries to their deposit account. This authorization allows GIFT to debit or credit the account as needed to handle card transactions, adjustments, corrections, and any other transfers outlined in the Participation Agreement. This includes covering program fees like shipping, fulfillment, merchandising materials, and card fees.
Additionally, if any debit to the franchisee's deposit account is returned for any reason, the franchisee authorizes GIFT to debit the account for the original amount plus any associated returned item fees. The franchisee must also follow all applicable laws and the rules of the National Automated Clearing House Association.
To formalize this authorization, Dq Treat requires franchisees to complete and sign an ACH Authorization form (Exhibit A). This form includes providing bank name, account number, account title, and ABA routing number, along with a voided check or a bank letter validating the account details. This authorization ensures that GIFT can manage financial transactions efficiently and accurately, while also protecting GIFT from losses due to returned payments.