Can the Exit Franchise Agreement be executed in multiple counterparts?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
44. COUNTERPARTS
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 multiple counterparts. This means that the agreement does not need to be signed on a single document. Instead, each party can sign a separate copy (counterpart) of the agreement, and all of these signed copies together will constitute one complete and binding agreement.
This flexibility is further clarified by stating that each counterpart is considered an original document for the party that signed it. The agreement becomes fully combined and effective when at least one counterpart bears the signatures of all parties involved. This accommodates situations where parties are geographically separated or have difficulty coordinating a single signing event.
Exit also permits the use of electronically scanned copies of the agreement bearing manual or electronic signatures. These scanned copies are considered valid and binding, and are treated as enforceable original documents. This modern approach to contract execution streamlines the process and reduces the need for physical paperwork, making it easier and faster to finalize the franchise agreement.