Can the Atwell Suites license agreement be executed in multiple counterparts?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
under Federal Bankruptcy Law (11 U.S.C.A. Sec. 101 et seq.), paragraphs 11.C(1)(b) and (d) of the License Agreement shall be amended to include the following language: "Enforceability of this provision is a matter governed by Federal Bankruptcy Law and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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- The Virginia Code Sections 13.1-557-574-13.1-564 provide: "It shall be unlawful for a franchisor to cancel a franchise without reasonable cause or to use undue influence to induce a franchisee to surrender any right given to it by any provision contained in the franchise." If any ground for default or termination stated in the License does not constitute "reasonable cause," as that term may be defined in the Virginia Code, that provision may not be enforceable.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 FDD, the Atwell Suites license agreement can be executed in multiple counterparts in certain states. Specifically, amendments to the license agreement for franchisees in California, Virginia, Hawaii, North Dakota and Rhode Island allow for the agreement to be executed in counterparts, which together constitute one and the same instrument. These amendments also state that signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
This means that Atwell Suites franchisees in these states do not need to sign a single, physical document. Instead, the agreement can be signed in separate parts (counterparts), potentially by different parties at different times, and then compiled into a single, complete agreement. This flexibility can streamline the signing process, especially when dealing with multiple signatories or parties located in different geographic locations.
For a prospective Atwell Suites franchisee, this is a beneficial clause as it simplifies the execution of the license agreement. The acceptance of electronic signatures further modernizes the process, reducing the need for physical paperwork and potentially speeding up the onboarding process. Franchisees should confirm whether their specific state requires such an amendment and ensure they understand the implications of signing in counterparts, particularly regarding the completeness and accuracy of the final compiled agreement.