Are electronic or digital signatures binding on the parties in the Christian Brothers Automotive Lease agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
26.01 Counterparts and Electronic Signatures. This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original and such counterparts shall together constitute but one and the same Agreement. The parties shall be entitled to sign this Agreement electronically or digitally and transmit electronic or digital copies of this Agreement (whether by facsimile, PDF or other email or electronic transmission), whereby such electronic signatures shall be binding on the party whose name is contained therein.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, electronic or digital signatures are binding. The Franchise Agreement outlines that the parties can sign the agreement electronically or digitally and transmit copies via facsimile, PDF, email, or other electronic transmission. These electronic signatures are legally binding on the party whose name is contained within the signature. This applies specifically to the Franchise Agreement itself.
However, the document also mentions a Commercial Sub-Lease Agreement. A Dispute Resolution Agreement attached as Exhibit B to the Commercial Sub-Lease Agreement states that disputes arising out of or relating to the Lease, the Franchise Agreement, or any other agreement between the parties will be resolved through binding arbitration. This suggests that the Lease agreement is a separate document from the Franchise Agreement, but the FDD does not explicitly state whether electronic signatures are binding on the parties in the Christian Brothers Automotive Lease agreement.
Therefore, while electronic signatures are binding for the Franchise Agreement, the FDD does not provide explicit information regarding the enforceability of electronic signatures specifically within the context of the Commercial Sub-Lease Agreement. A prospective franchisee should seek clarification from Christian Brothers Automotive regarding the enforceability of electronic signatures on all agreements, including the Commercial Sub-Lease Agreement, to fully understand their legal obligations.