Does the Remax franchise agreement allow a franchisee to later argue that an electronically signed agreement is not binding?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
BB. ELECTRONIC SIGNATURES.
The parties hereby acknowledge and agree that electronic signatures, in such form and manner as REMAX Regional may prescribe from time to time, shall be legal and binding and shall have the same full force and effect as if an original of this Agreement had been signed and delivered by hand. REMAX Regional and Franchisee both (i) intend to be bound by the signatures (whether original or electronic) on any document sent or signed electronically, (ii) are aware that the other party will rely on such signatures, and (iii) hereby waive any defenses to the enforcement of the terms of this Agreement based on the foregoing forms of signature.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the franchise agreement explicitly addresses the validity of electronic signatures. It states that electronic signatures are considered legal, binding, and carry the same weight as handwritten signatures, provided they are in the form and manner prescribed by Remax Regional.
Specifically, both Remax Regional and the franchisee acknowledge their intent to be bound by electronic signatures on any document sent or signed electronically. Furthermore, both parties are aware that the other party will rely on these signatures. Consequently, the agreement includes a waiver of any defenses against the enforcement of the agreement's terms based on the use of electronic signatures.
This clause aims to prevent franchisees from later claiming that an electronically signed agreement is not enforceable. By agreeing to this provision, a franchisee acknowledges the validity and enforceability of electronic signatures, reducing the risk of future legal challenges based on the signature method. This is a fairly standard clause in modern franchise agreements, reflecting the increasing use of electronic documents and signatures in business transactions.