According to the Chatime franchise agreement, who qualifies as an 'Interested Party'?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
The agreement by Developer Parties in clause 7.2 applies to any of them, the Interested Parties, and those acting:
- (1) In partnership or association with another person;
- (2) As principal, agent, representative, director, officer, employee, or financier;
- (3) As member, shareholder, debenture holder, note holder, or holder of any other security;
- (4) As trustee of or as a consultant or adviser to any person; or
- (5) In any other capacity.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the term 'Interested Parties' includes any individuals or entities acting in various capacities related to the Developer Parties. These capacities span a wide range of involvements and relationships.
Interested Parties encompass those acting in partnership or association with another person, as well as those serving as a principal, agent, representative, director, officer, employee, or financier. This broad definition extends to individuals or entities holding membership, shares, debentures, notes, or any other form of security.
Additionally, the definition includes those acting as a trustee, consultant, or advisor to any person, or in any other capacity. This comprehensive list ensures that anyone with a significant connection to the Developer Parties and their operations falls under the purview of the franchise agreement, particularly concerning confidentiality and non-competition obligations.
Chatime requires that Developer ensures these Interested Parties enter into confidentiality and non-competition agreements, safeguarding Chatime's sensitive information and competitive position.