What authorization documents must a Southern Steer franchisee execute for electronic funds transfers?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ATTACHMENT D AUTHORIZATION TO HONOR ELECTRONIC FUNDS TRANSFERS
PAYEE: SOUTHERN STEER FRANCHISING INTERNATIONAL, LLC BANK NAME: ACCOUNT NO.:
The undersigned Depositor hereby authorizes and requests the Depository designated below to honor and to charge to the following designated account, checks, drafts, orders and electronic debits (collectively "debits") drawn on such account which are payable to the above-named Payee. It is agreed that the Depository's rights with respect to each such debit will be the same as if it were a check drawn and signed by the Depositor. It is further agreed that if any such debit is not honored, whether with or without cause and whether intentionally or inadvertently, the Depository will be under no liability whatsoever. This authorization will continue in force until the Depository and the Payee have received at least thirty (30) days written notification from the Depositor of its termination.
The Depositor agrees with respect to any action taken pursuant to the above authorization:
- (1) To indemnify the Depository and hold it harmless from any loss it may suffer resulting from or in connection with any debit including, without limitation, execution and issuance of any check, draft or order, whether or not genuine, purporting to be authorized or executed by the Payee and received by the Depository in the regular course of business for the purpose of payment, including any costs or expenses reasonably incurred in connection therewith.
- (2) To indemnify the Payee and the Depository for any loss arising in the event that any such debit will be dishonored, whether with or without cause and whether intentionally or inadvertently.
- (3) To defend, at the Depositor's own cost and expense, any action which might be brought by any persons or Entities because of any actions taken by the Depository or the Payee pursuant to the foregoing request and authorization, or in any manner arising by reason of the Depository's or the Payee's participation therein.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a franchisee must execute the "Authorization to Honor Electronic Funds Transfers" document to allow Southern Steer Franchising International, LLC to electronically debit the franchisee's designated bank account. This authorization permits Southern Steer to draw checks, drafts, orders, and electronic debits from the franchisee's account. The franchisee's bank has the same rights regarding these debits as if they were checks signed by the franchisee. The bank assumes no liability if a debit is not honored, regardless of the reason. This authorization remains effective until the bank and Southern Steer receive 30 days' written notice of termination from the franchisee.
The franchisee agrees to indemnify both the bank and Southern Steer against any losses resulting from these debits, including any costs or expenses related to checks, drafts, or orders, whether genuine or not. The franchisee also agrees to cover any losses if a debit is dishonored, regardless of the cause. Furthermore, the franchisee is responsible for defending any legal actions brought against the bank or Southern Steer due to actions taken under this authorization, covering all associated costs and expenses.
In practical terms, this means a Southern Steer franchisee gives Southern Steer permission to automatically withdraw funds from their bank account for fees and other payments. This is a fairly standard practice in franchising, allowing for efficient and timely payments. However, the franchisee bears the responsibility for ensuring sufficient funds are available to cover these debits and for any legal issues that may arise from this arrangement. The franchisee also needs to provide written notice 30 days in advance to terminate this authorization.