Common use of Credit and Collections Clause in Contracts

Credit and Collections. Franchisee agrees to comply with Franchisors credit and collections policy provided below and as it may be modified from time to time: (1) Franchisee shall ensure that Clients submit payments directly and promptly to Franchisor or Franchisors Payroll and Billing Operations. Franchisee agrees Franchisee will not interfere with such payments. Franchisor, in Franchisors sole discretion, may also contact Clients regarding the collection of their Billings. All collection costs directly related to Franchisee operation of the Business incurred by Franchisor, Internally or externally, shall be changed to Franchisee as an Adjustment to the Distribution Account. (2) Franchisee agrees Franchisee will not deposit or cash any Receipts inadvertently received by Franchisee, but will immediately forward such Receipts to Franchisor. However, should Franchisee, Franchisee Manager or Staff Employees inadvertently accept such payment Franchisee shall promptly turn over such payments to Franchisor in the form received. Failure to immediately remit to Franchisor any Client payments that may come into Franchisee possession (including any amounts previously treated as Chargebacks), shall result in (i) the suspension of all further Distribution Account payments to Franchisee until Franchisor receives such payments, and (ii) Interest accrual from the date Franchisee received such payments until they are received by Franchisor. Such action shall be viewed as a conversion of Franchisors funds for which this Agreement and any other agreement with Franchisor and Franchisors affiliates may be immediately terminated. In addition, Franchisee and Franchisee Principal Owners may be subject to appropriate legal remedies which may include criminal prosecution. (3) Franchisee hereby authorizes and grant to Franchisor the power to accept, endorse, and negotiate any Client payments made inadvertently or improperly to Franchisee, Franchisee agents, affiliates, or other persons associated with the Business. (4) Franchisor may, at Franchisee expense, conduct credit checks on all proposed Clients. Franchisor shall reserve the right to conduct credit checks on proposed Clients and charge the Distribution Account accordingly. Each Client must be approved by Franchisor before Franchisee provides services to the Client.