Can Pearce Bespoke initiate debit entries for purposes other than those specified in the Franchise Agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| The undersigned depositor ("Depositor" or "Licensee") hereby authorizes Pearce Bespoke Franchising, LLC ("Licensor") to initiate debit entries and/or credit correction entries to the undersigned's checking and/or savings account(s) indicated below, and the depository designated below ("Depository" or "Bank") to debit or credit such account(s) pursuant to Licensor's instructions. Please attach a voided blank check, for purposes of setting up bank and transit numbers. |
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| Depository: |
| Branch: |
| City, State Zip: |
| Bank Transit/ABA Number: |
| Account Number: |
| This authority is to remain in full force and effect until 60 days after Licensor has received written |
| notification |
| from Licensee of its termination or expiration. |
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the franchisee authorizes Pearce Bespoke Franchising, LLC to initiate debit entries to the franchisee's checking or savings account. The FDD does not specify or limit the purposes for which Pearce Bespoke can initiate these debit entries. The authorization remains in effect until 60 days after Pearce Bespoke receives written notification from the franchisee regarding termination or expiration of the agreement.
This authorization allows Pearce Bespoke to directly debit the franchisee's account for various fees, purchases, or other financial obligations arising from the franchise agreement. The franchisee should carefully review the franchise agreement to understand all potential charges that may be debited from their account.
It is important for a prospective Pearce Bespoke franchisee to seek clarification from Pearce Bespoke regarding the specific purposes for which these debit entries will be used. Understanding the scope of this authorization is crucial for managing finances and ensuring transparency in financial transactions between the franchisee and Pearce Bespoke. Franchisees should also ensure they have a clear process for disputing any unauthorized or incorrect debit entries.