For the Belocal franchise agreement, what effect do facsimile signatures have?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Counterpart Execution; Facsimile Signatures. This Transfer Agreement may be executed in multiple counterparts, each of which when so executed will be an original, and all of which will constitute one and the same instrument. Facsimile signatures will be considered effective for execution purposes.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, facsimile signatures are considered effective for execution purposes within the Transfer Agreement. This means that a copy of a signature sent via fax is legally binding as an original signature on the Transfer Agreement. This applies specifically to the Transfer Agreement, which outlines the terms for transferring a franchise to a new owner.
This clause simplifies the process of executing the Transfer Agreement, as parties do not necessarily need to physically sign and mail the documents. Instead, they can fax a signed copy, which is then considered legally valid. However, it's important to note that this clause appears within the context of the Transfer Agreement, and it's not explicitly stated whether this applies to other agreements within the Belocal franchise system, such as the initial Franchise Agreement itself.
While the FDD excerpt specifies that facsimile signatures are effective, prospective franchisees should confirm with Belocal whether this also applies to other documents and agreements within the franchise relationship. It is also prudent to understand if there are any specific procedures or requirements for using facsimile signatures, such as providing an original signed copy as confirmation, as is mentioned in the context of sending notices via fax within the Transfer Agreement.