What form must a Gold Star franchisee complete to authorize electronic debits?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3.2 FRANCHISEE will complete and execute an "Authorization for Electronic Fund Transfers" form and any other form provided by the COMPANY for the purpose of authorizing electronic debits, submit any information required by the COMPANY for such authorization, comply with procedures specified by the COMPANY, and perform such additional acts as may be necessary to accomplish payment by electronic fund transfer.
By signing this Agreement, FRANCHISEE authorizes the COMPANY to initiate debit entries and credit correction entries to a designated checking account for payment of continuing franchise fees, Brand Building Fees, or any other amounts payable to the COMPANY, including, without limitation, audit fees (Section 10.2), operating fees (Section 5.14), renewal fee (Section 16.1.8), attorney fees, interest and late fees.
FRANCHISEE will maintain a business account at a bank or other financial institution with the capacity to electronically debit FRANCHISEE's account.
- 8.3.3 FRANCHISEE will maintain an account balance sufficient to make all continuing franchise fees, Brand Building Fees, and other payments to the COMPANY by electronic transfer, and any insufficiency will be considered a default in payment pursuant to Section 14.5.1 of this Agreement.
FRANCHISEE will promptly reimburse the COMPANY for any charges incurred by the COMPANY due to a shortage of funds in FRANCHISEE's account.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee must complete and execute an "Authorization for Electronic Fund Transfers" form to authorize electronic debits. Additionally, they must complete any other form provided by Gold Star for this purpose.
This requirement ensures that Gold Star can collect continuing franchise fees, Brand Building Fees, and any other amounts owed via electronic fund transfer. The franchisee must also provide any information required by Gold Star for the authorization and comply with any procedures specified by Gold Star.
Furthermore, the franchisee authorizes Gold Star to initiate debit entries and credit correction entries to their designated checking account for payments, including audit fees, operating fees, renewal fees, attorney fees, interest, and late fees. The franchisee is obligated to maintain a business account capable of electronic debits and ensure sufficient funds are available to cover all payments. Failure to maintain sufficient funds may result in default, and the franchisee will be responsible for reimbursing Gold Star for any charges incurred due to insufficient funds.