What is ACH in the context of Lees Famous Recipe fees?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
Explanatory Notes:
- 1. Non-Refundable Fees. Except where otherwise noted, all of these fees are uniformly imposed, collected and payable to us or our affiliates. All fees are nonrefundable. All fees are payable through our current electronic funds transfer program authorizing us to use a pre-authorized bank draft authorization ("ACH") where noted.
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, ACH refers to a pre-authorized bank draft authorization that the franchisor uses for electronic funds transfers. Specifically, Lees Famous Recipe requires franchisees to authorize them to use ACH for fee payments where indicated.
This means that for certain fees, Lees Famous Recipe will automatically debit the franchisee's designated bank account. The Brand Cooperative Advertising Fund Fee, for example, is paid via ACH. This payment method ensures timely and consistent payment of fees, reducing the administrative burden for both the franchisee and the franchisor.
While the FDD specifies that ACH is the required payment method for certain fees, franchisees should confirm exactly which fees are subject to ACH and understand the process for setting up and managing these electronic transfers. Franchisees should also inquire about procedures for addressing any potential issues with ACH payments, such as insufficient funds or incorrect debit amounts.