Are copies of executed counterparts transmitted by electronic transmission service considered original executed counterparts for the Azal Coffee Guaranty?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
This EFT Authorization may be executed in any number of counterparts each of which when so executed shall be an original, but all of which together shall constitute one (1) and the same instrument. This EFT Authorization may be executed on signature pages exchanged by electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. Copies of executed counterparts transmitted by such electronic transmission service shall be considered original executed counterparts for purposes of this EFT Authorization.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, copies of executed counterparts transmitted via electronic transmission are considered original executed counterparts, but specifically for the EFT Authorization, not the Azal Coffee Guaranty. This means that when authorizing electronic fund transfers for payments to Azal Coffee, franchisees can use electronically transmitted copies of the authorization documents as originals. This is a common practice that streamlines the authorization process.
This provision simplifies the process of setting up electronic fund transfers, as it allows for the use of digital signatures and electronic transmission of documents. This can save time and reduce paperwork for both the franchisee and Azal Coffee. The reference to the U.S. federal ESIGN Act of 2000 indicates that Azal Coffee recognizes and complies with federal law regarding electronic signatures, providing a legal basis for the validity of electronically signed documents.
However, this clause applies specifically to the EFT Authorization. The FDD excerpt does not specify whether this also applies to the Azal Coffee Guaranty. A prospective franchisee should confirm with Azal Coffee whether electronically transmitted copies are acceptable for all agreements, including the Guaranty, to ensure compliance and avoid potential issues.