Under what circumstances can Pearce Bespoke withdraw funds from a franchisee's bank account?
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. |
|---|
| 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. |
| AGREED: |
| LICENSEE: |
| [FRANCHISEE ENTITY] |
| Signature: |
| Name: |
| Title: |
| Date: |
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee authorizes Pearce Bespoke Franchising, LLC to initiate debit entries and/or credit correction entries to the franchisee's checking and/or savings account. This 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 Pearce Bespoke can automatically withdraw funds from a franchisee's bank account for various purposes as outlined in the franchise agreement. The franchisee provides this authorization as part of the agreement, allowing Pearce Bespoke to manage financial transactions directly from the franchisee's account.
The franchisee can terminate this authorization, but it requires written notification to Pearce Bespoke, and the termination becomes effective 60 days after Pearce Bespoke receives the notification. This delay should be considered by the franchisee when planning the termination of the agreement or closure of the franchise. It is a common practice in franchising to have such authorization for various fees and payments, but franchisees should carefully review the terms and conditions to understand the extent and limitations of this authorization.