Does Fat Shack allow for the use of electronic signatures when executing the Franchise Agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
24.23. Acknowledgment
BEFORE SIGNING THIS AGREEMENT, FRANCHISEE SHOULD READ IT CAREFULLY WITH THE ASSISTANCE OF LEGAL COUNSEL. FRANCHISEE ACKNOWLEDGES THAT:
- (A) THE SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED HEREIN INVOLVES SUBSTANTIAL RISKS AND DEPENDS UPON FRANCHISEE'S ABILITY AS AN INDEPENDENT BUSINESS PERSON AND ITS ACTIVE PARTICIPATION IN THE DAILY AFFAIRS OF THE BUSINESS, AND
- (B) NO ASSURANCE OR WARRANTY, EXPRESS OR IMPLIED, HAS BEEN GIVEN AS TO THE POTENTIAL SUCCESS OF SUCH BUSINESS VENTURE OR THE EARNINGS LIKELY TO BE ACHIEVED, AND
- (C) NO STATEMENT, REPRESENTATION OR OTHER ACT, EVENT OR COMMUNICATION, EXCEPT AS SET FORTH IN THIS DOCUMENT, AND IN ANY DISCLOSURE DOCUMENT SUPPLIED TO FRANCHISEE IS BINDING ON FSI IN CONNECTION WITH THE SUBJECT MATTER OF THIS AGREEMENT.
SIGNATURE PAGE FOLLOWING PAGE
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above set forth.
FAT SHACK INC.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, the signature page of the franchise agreement includes spaces for the franchisee and Fat Shack Inc. to sign and date the agreement. While the document does not explicitly state that electronic signatures are permitted, the inclusion of email address fields for both parties suggests a potential acceptance or use of electronic communication, which could extend to electronic signatures. Prospective franchisees should clarify with Fat Shack whether electronic signatures are acceptable for the Franchise Agreement.
It is important to note that the signature page also includes a section for the franchisee's company name and title if the franchisee is a corporation, limited liability company, or partnership. Additionally, there is an acknowledgment section that emphasizes the importance of the franchisee seeking legal counsel before signing the agreement and recognizing the risks involved in the business venture. This highlights the need for franchisees to fully understand the terms and conditions of the agreement before signing.
Typical franchise agreements often specify the types of signatures that are acceptable, whether they be physical or electronic, and may outline specific procedures for using electronic signature platforms to ensure validity and security. Given the absence of explicit information regarding electronic signatures in the Fat Shack FDD, prospective franchisees should directly inquire with the franchisor to confirm their policy on electronic signatures to ensure compliance and avoid any potential issues during the agreement execution process.