Is a faxed signature binding for the Bananas Smoothies Frozen Yogurt Sublease Agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
A facsimile signature, including photocopied, faxed and electronically transmitted (such as PDF) copies of a signature, is binding to the same extent as an original signature and shall be deemed an original signature with regard to this Agreement and all Riders and any Amendments hereto. The parties hereto agree that this Sublease Agreement may be executed electronically by any means Sublessor chooses, and if by electronic signature, the electronic signature shall be binding to the same extent as an original signature and shall be deemed an original signature with regard to this Agreement and all Riders, Amendments or Addenda hereto. Sublessee is not entitled to challenge the validation or authenticity of the electronic signature or the document on the ground that it is not the original.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, a faxed signature is legally binding on the Sublease Agreement. The document states that a facsimile signature, which includes photocopied, faxed, and electronically transmitted copies such as PDFs, carries the same weight as an original signature. This applies to the Sublease Agreement, all Riders, and any Amendments.
This means that franchisees and sublessors can execute the Sublease Agreement and related documents via fax or electronic transmission without needing to exchange physically signed copies. This can expedite the process of finalizing agreements, as it removes the delays associated with mailing or delivering original documents. Bananas Smoothies Frozen Yogurt also agrees that the Sublease Agreement may be executed electronically by any means the Sublessor chooses.
Bananas Smoothies Frozen Yogurt emphasizes that neither party can later challenge the validity or authenticity of a signature or document simply because it is a faxed or electronic copy rather than an original. This provision aims to prevent disputes based on the method of signature, ensuring that all parties are bound by the terms of the agreement regardless of whether they signed a physical document or its electronic equivalent. This is a fairly standard practice in modern franchising to streamline the agreement process.