Does Exit consider electronically scanned copies of the Franchise Agreement with manual or electronic signatures as a valid and binding execution?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which together constitute one and the same instrument. This Agreement shall be combined when one or more of the counterparts hereof, individually or taken together, shall bear the signatures of the parties reflected thereon as the signatories (including witness signatures). Execution and delivery of this Agreement by exchange of electronically scanned copies bearing the manual or electronic signature of a party shall constitute a valid and binding execution by that party. Electronically scanned copies shall constitute enforceable original documents.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchise agreement can be executed in counterparts, each considered an original. When one or more counterparts bear the signatures of the parties, including witness signatures, they are combined to form a single agreement.
Specifically, Exit states that exchanging electronically scanned copies of the agreement with manual or electronic signatures constitutes a valid and binding execution by the signing party. These electronically scanned copies are considered enforceable original documents.
This means that franchisees do not necessarily need to physically sign and mail the franchise agreement. Scanning and sending the signed document electronically is sufficient for a legally binding agreement with Exit.