Are digitally-executed and time-stamped copies of the Fitstop Franchise Agreement considered valid?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.11 This Agreement may be executed in one or more counterparts, any one of which shall be binding on any Party signing thereon. Photocopied copies, digitally-executed and time-stamped copies and scanned original documents shall be deemed originals and shall be valid, binding, and enforceable in accordance with their terms.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, digitally-executed and time-stamped copies of the Franchise Agreement are considered valid. Specifically, the agreement may be executed in counterparts, and photocopied, digitally-executed, time-stamped, and scanned original documents are all considered originals. These copies are valid, binding, and enforceable under the terms of the agreement.
This means that a franchisee does not necessarily need a physical, ink-signed copy of the agreement to be bound by its terms. A digital copy with a timestamp holds the same legal weight as an original document. This is a fairly common practice in modern franchising, as it streamlines the signing process and allows for easier storage and retrieval of documents.
However, it is important for the franchisee to ensure that the digital execution process is secure and verifiable. They should also retain a copy of the digitally-executed agreement for their records. If there are any concerns about the validity of a digitally-executed agreement, it is always best to consult with an attorney.