How can a depositor cancel the authority related to the Punch King Fitness agreement?

According to the 2024 Punch King Fitness Franchise Disclosure Document, Exhibit 3 outlines the authorization for electronic funds transfer related to the franchise agreement. While the exhibit authorizes Punch King Fitness to initiate debit entries to the depositor's checking account, the document does not specify the procedure a depositor must follow to cancel this authorization.

Typically, such authorizations can be canceled by providing written notice to both the payee (Punch King Fitness) and the bank. The notice should clearly state the depositor's intent to revoke the authorization for electronic transfers. It is also advisable to follow up with the bank to ensure that the cancellation has been properly implemented and to verify that no further debits will be allowed.

Because the FDD does not provide specific instructions on how to cancel the electronic funds transfer authorization, prospective Punch King Fitness franchisees should seek clarification from the franchisor regarding the exact steps and notification periods required to cancel the authorization. Understanding the cancellation process is crucial for maintaining control over financial transactions related to the franchise.