For a Floyds 99 franchise, does termination of the electronic funds transfer authorization relieve the franchisee of their obligation to make payments to Floyd's 99 Franchising, LLC?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT IV TO FRANCHISE AGREEMENT
ELECTRONIC FUNDS TRANSFER AUTHORIZATION
The undersigned depositor ("Franchisee") agrees to electronic funds transfer from Franchisee's account designated below to the designated account(s) of Floyd's 99 Franchising, LLC ("Franchisor") for payment of Royalties, National Marketing Contributions, and other obligations owed to Franchisor related to Franchisee's FLOYD'S 99 franchise(s).
Franchisee authorizes and requests the financial institution (the "Bank") to accept the payment entries presented to the Bank by Franchisor, and to deduct them from the Franchisee's account without responsibility for the correctness of these payments.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
The 2025 Floyds 99 Franchise Disclosure Document includes an Electronic Funds Transfer Authorization form as Exhibit IV to the Franchise Agreement. This authorization allows Floyds 99 Franchising, LLC to directly debit the franchisee's designated bank account for royalties, national marketing contributions, and other financial obligations.
Terminating this authorization does not relieve the franchisee of their underlying obligation to make these payments. The authorization simply provides a convenient method for Floyds 99 to collect funds. The franchisee remains responsible for ensuring that all required payments are made on time, regardless of whether the electronic funds transfer is active.
If a franchisee terminates the EFT authorization, they will need to arrange an alternative payment method acceptable to Floyds 99 to continue meeting their financial obligations under the Franchise Agreement. Failure to do so could result in penalties or even termination of the franchise agreement.