For Itan franchises, how soon after the Effective Date must the ACH Agreement be completed and sent?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **13.5.
Method of Payment.** No later than 15 days after the Effective Date, you must complete and send us a signed ACH Agreement authorizing us to electronically debit your designated Account for all amounts owed to us and our affiliates on the applicable due date, excluding amounts due less than 15 days after the Effective Date.
You must sign all other documents required by us or your bank to enable u
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must complete and submit a signed ACH Agreement within 15 days of the Effective Date of the Franchise Agreement. This agreement authorizes Itan to electronically debit the franchisee's designated account for all amounts owed to Itan and its affiliates.
However, this requirement excludes amounts due less than 15 days after the Effective Date. This means that if any payments are due to Itan within that initial 15-day window, those specific amounts are not subject to the ACH Agreement and would need to be handled through a different payment method.
This policy ensures that Itan has a reliable method for collecting ongoing fees and payments from its franchisees, while also providing a short grace period for initial payments that may fall due shortly after the franchise agreement takes effect. Franchisees should be aware of this deadline and ensure they complete and submit the ACH Agreement promptly to avoid any potential issues with payment processing.