Until when does the credit card authorization remain in effect for Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall also execute an Electronic Funds Withdrawal and Credit Card Authorization, which is attached as Exhibit D to this Agreement (which also includes a credit card authorization in favor of Franchisor authorizing Franchisor to charge all amounts Franchisee or its affiliates owe to Franchisor under this Agreement or any other agreement between Franchisee and its affiliates and Franchisor), and give copies to Franchisee's bank and to Franchisor.
Franchisee shall immediately notify Franchisor of any change in Franchisee's banking relationship, including changes in
account numbers. Franchisor reserves the right to require Franchisee to pay any fees due under this Agreement by other means Franchisor may specify from time to time. If Franchisee does not report Gross Sales in the time period required by Franchisor, Franchisor may process an automated bank draft (or other method used by Franchisor to collect funds) based on one hundred twenty percent (120%) of the last Royalty Fee, Marketing Contribution, and other fees that Franchisor collected. If the Royalty Fee, Marketing Contribution, and other amounts Franchisor collects are less than the fees Franchisee actually owes Franchisor, Franchisor will debit Franchisee's account for the balance on a day Franchisor specifies. If the Royalty Fee, Marketing Contribution, and other amounts Franchisor debits are greater than the fees Franchisee actually owes Franchisor, Franchisor will credit the excess against the amount Franchisor otherwise would debit from Franchisee's account during the following month.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, as a condition of the franchise agreement, the franchisee must execute an Electronic Funds Withdrawal and Credit Card Authorization, granting Face Foundrie the authority to charge any amounts owed under the agreement. This authorization is given to both the franchisee's bank and to Face Foundrie.
The authorization remains in effect throughout the term of the agreement, allowing Face Foundrie to collect fees and other amounts owed. The franchisee is obligated to inform Face Foundrie immediately of any changes to their banking relationship, including account number changes.
Face Foundrie retains the right to specify alternative payment methods for fees due under the agreement. If a franchisee fails to report gross sales within the required timeframe, Face Foundrie can initiate an automated bank draft based on 120% of the last collected Royalty Fee, Marketing Contribution, and other fees. Adjustments are made in subsequent debits or credits to reconcile any discrepancies between the estimated and actual amounts owed.