Why does Pearce Bespoke require a voided blank check with the Authorization Form?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, a voided blank check is required with the authorization form to set up the bank and transit numbers for processing debit and credit entries. This authorization allows Pearce Bespoke Franchising, LLC to initiate debit entries or credit correction entries to the franchisee's checking or savings account. The depository or bank is then instructed to debit or credit the account based on Pearce Bespoke's instructions.

This setup ensures that Pearce Bespoke can manage financial transactions directly with the franchisee's bank account. This can include collecting fees, royalties, or other payments owed to Pearce Bespoke under the franchise agreement. It also allows Pearce Bespoke to make corrections or adjustments to payments as needed.

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 means that even after the franchise agreement ends, Pearce Bespoke retains the authority to access the franchisee's account for a period of time to settle any outstanding financial matters. Franchisees should be aware of this ongoing authorization and the importance of providing timely written notice of termination to prevent any unauthorized transactions after the franchise relationship has ended.

Requiring a voided check is a common practice in franchising for setting up automated payments. It helps ensure accuracy in the bank and transit numbers, reducing the risk of errors in electronic transactions. Franchisees should carefully review the authorization form and understand the terms and conditions before signing, particularly regarding the duration of the authorization and the process for termination.