When does the Fat Shack franchise agreement become effective if executed in counterparts or by copies?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Counterparts and Telecopies. This Agreement may be executed in counterparts or by copies transmitted by telecopier, all of which shall be given the same force and effect as the original. This Agreement shall be effective when the signatures of all Parties have been affixed to counterparts or copies.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, the franchise agreement becomes effective once all parties have signed the counterparts or copies of the agreement. This means that the agreement does not become binding until every required signature is affixed to either the original documents or copies of those documents.
This clause provides flexibility, allowing Fat Shack and the franchisee to sign separate copies of the agreement, which is especially useful if the parties are geographically separated. Each signed copy is treated as an original, and the agreement takes effect once all signatures are collected.
This is a fairly standard clause in franchise agreements. It simplifies the execution process without changing the legal obligations of either party. Prospective Fat Shack franchisees should be aware of this clause, ensuring they understand that the agreement is not binding until all signatures are obtained, regardless of whether they are on the same document or on separate copies.