What is the effect of each counterpart signature on the Buns On Fire agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
This Disclosure Document and the Franchise Agreement and any other documents to be delivered in connection herewith and therewith may be electronically signed, that any digital or electronic signatures (including pdf, facsimile or electronically imaged signatures provided by DocuSign or any other digital signature provider) appearing on this Disclosure Document and the Franchise Agreement or such other documents are the same as handwritten signatures for the purposes of validity, enforceability and admissibility, and that delivery of any such electronic signature to, or a signed copy of, this Disclosure Documents and the Franchise Agreement and such other documents may be made by facsimile, email or other electronic transmission.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, digital or electronic signatures on the Disclosure Document, Franchise Agreement, and other related documents are considered equivalent to handwritten signatures in terms of validity, enforceability, and admissibility. This means that a franchisee's electronic signature carries the same legal weight as a traditional signature. Furthermore, the document allows for the delivery of these signed documents (or copies thereof) via facsimile, email, or other electronic transmission methods. This aims to streamline the signing and delivery process, making it more efficient for both Buns On Fire and its franchisees.
However, the FDD also includes state-specific addenda that may modify the effect of signatures or certain provisions within the Franchise Agreement. For example, addenda for California, Washington, Minnesota, North Dakota, and Rhode Island include provisions that supersede the standard agreement. These addenda often address issues such as waivers of claims, governing law, dispute resolution, and payment of initial fees. In Maryland, the general release included in the training completion agreement does not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Therefore, while electronic signatures are generally accepted and enforceable, franchisees must carefully review any state-specific addenda to understand how these provisions may alter their rights and obligations under the Buns On Fire Franchise Agreement. These addenda can impact various aspects of the franchise relationship, including dispute resolution, termination rights, and waivers of legal claims. Prospective franchisees should consult with legal counsel to fully understand the implications of these provisions in their specific state.