To whom does the Southern Steer franchisee authorize electronic fund 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 FDD, a franchisee authorizes their bank or financial institution to make electronic fund transfers (EFT) directly to Southern Steer Franchising International, LLC. This authorization allows the franchisee's bank to pay Southern Steer the fees owed under the franchise agreement. The franchisee must sign documents giving unconditional and irrevocable authority to their bank to make these payments. These EFT authorizations must be in the form prescribed by Southern Steer.
The EFT withdrawals are typically initiated by Southern Steer on Wednesdays of each week for the fees payable for the preceding week, or on the first of each month for the fees payable for the preceding month. These withdrawals cover fees payable under the agreement. Southern Steer can also initiate a withdrawal upon issuing an invoice for other amounts the franchisee owes.
The authorization permits Southern Steer to designate and adjust the amount withdrawn from the franchisee's account for fees. If a franchisee fails to provide required gross revenue reports, Southern Steer has the right to estimate the fees payable and withdraw the estimated amount via EFT. The franchisee also agrees to indemnify both the depository and Southern Steer Franchising International, LLC for any losses or actions arising from the electronic fund transfers.