What form must an Itan franchisee sign to permit electronic debits from their bank account?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You sign an ACH Authorization Form (attached to the Franchise Agreement as ATTACHMENT "E") permitting us to electronically debit your designated bank account for all amounts owed to us and our affiliates (other than fees due less than 15 days after signing the Franchise Agreement). You must deposit all Gross Sales into the bank account and ensure sufficient funds are available for withdrawal before each due date.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must sign an ACH Authorization Form to allow Itan to electronically debit their bank account for fees owed to Itan and its affiliates. This form is included as ATTACHMENT "E" to the Franchise Agreement.
It is important to note that this authorization does not apply to fees due less than 15 days after signing the Franchise Agreement. The franchisee is required to deposit all Gross Sales into the designated bank account and ensure sufficient funds are available for withdrawal on each due date.
This arrangement is a fairly standard practice in franchising, as it provides a convenient and reliable method for franchisors to collect ongoing fees like royalties and marketing contributions. However, franchisees should carefully review the ACH Authorization Form and understand the terms and conditions before signing, including the amounts that may be debited and the frequency of withdrawals. Franchisees should also be aware of the penalties for insufficient funds, as outlined elsewhere in the FDD.