For Dq Treat, is the Licensee required to sign an electronic transfer of funds authorization?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.6 Electronic Funds Transfer. Licensee must sign an electronic transfer of funds authorization, or other documents that Company designates periodically, to authorize and direct Licensee's bank or financial institution to transfer either electronically or through some other method of payment Company designates, directly to the account of Company or its affiliates and to charge to the account of Licensee all amounts due to Company or its affiliates from Licensee. Licensee's authorizations permit Company or its affiliates to designate the amount to be transferred from Licensee's account. Licensee must maintain a balance in its account sufficient to allow Company and its affiliates to collect the amounts owed to them when due. Licensee is responsible for any penalties, fines or other similar expenses associated with the transfer of funds described in this subparagraph. Company may require Licensee to pay as described in this section, regardless of whether Company imposes the same requirement on other DQ® licensees.
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 are required to sign an electronic transfer of funds authorization. This authorization allows Dq Treat to directly debit the franchisee's bank account for all amounts due to Dq Treat or its affiliates.
The franchisee's authorization permits Dq Treat or its affiliates to designate the amount to be transferred from the franchisee's account. The franchisee must ensure that there are sufficient funds in their account to cover these amounts when they are due. The franchisee is responsible for any penalties, fines, or other expenses associated with these fund transfers.
Dq Treat retains the right to require electronic payments from a franchisee, regardless of whether it imposes the same requirement on other Dq Treat licensees. This means that even if some franchisees are allowed to pay through other methods, a specific franchisee may still be required to use electronic funds transfer. This policy ensures that Dq Treat can collect payments efficiently and reliably, while placing the onus on the franchisee to manage their account balance and cover any associated fees.