Can the Bananas Smoothies Frozen Yogurt Sublease Agreement be executed electronically?
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, the Sublease Agreement can be executed electronically. The document states that the Sublessor can choose the means of electronic execution. If an electronic signature is used, it holds the same weight as an original signature, meaning it is binding and valid. The franchisee, or Sublessee, cannot challenge the authenticity of the electronic signature simply because it is not an original physical signature. This clause streamlines the agreement process, allowing for quicker and more convenient execution of the Sublease Agreement.
This electronic signature clause extends not only to the Sublease Agreement itself but also to all Riders, Amendments, or Addenda associated with it. This ensures that any modifications or additions to the original agreement can also be handled electronically, maintaining consistency and efficiency throughout the lifecycle of the sublease. The franchisor, Everything Yogurt Brands, LLC, maintains the right to determine the method of electronic execution, providing them with flexibility in choosing the most suitable and secure option.
Furthermore, a similar clause applies to the Owners' Personal Guaranty of Sublessee's Obligations, ensuring that this document can also be executed electronically with the same legal standing as a traditional signature. This is particularly relevant as it involves the personal guarantee of the franchisee, adding an extra layer of security for the Sublessor. The guarantor is also prohibited from challenging the electronic signature's validity on the basis that it is not an original.
In summary, Bananas Smoothies Frozen Yogurt permits the use of electronic signatures for the Sublease Agreement and related documents, which is a common practice in modern franchising to expedite and simplify the signing process. This benefits both the franchisor and franchisee by reducing administrative burdens and accelerating the establishment of new locations.