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#421273 - 09/12/05 06:50 PM DEP and franchise

accounts of individually owned local franchise-fast food restaurant- have been designated exempt- phase II. Previous owner recently deceased and franchise has been sold. as i see it, the new accounts would be subject phase II guidelines, 12 months,etc.,and viewed as new customer because the individual now controlling the accounts is a new customer. there is a different EIN, etc.. would you agree?

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#421274 - 09/20/05 03:37 PM Re: DEP and franchise

Has anyone had this happen with a phase II exemption? i tried to do a search but had no luck. This is a new area of banking for me and i just can't seem to put my hands on an answer. Thanks for any comments on this. I appreciate the help this forum provides- especially to those of us who are new to the field.

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#421275 - 09/20/05 03:46 PM Re: DEP and franchise
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
I'm a little hesitant, but only because I have never seen a national or regional franchise actually owned by an individual rather than an LLC, corporation, etc.

However, if that is what you had, there is no question that when the individual died you got a new customer, even if it was temporarily the individual's estate. The current owner, whether individual or entity, is a new customer and it would be necessary for you to wait for a year, file CTRs, etc. before testing for eligibility for exemption.
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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