According to the Chatime Franchise Agreement, what is specified in Schedule 1?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(49) Owners means all Persons holding Ownership Interests exceeding 10% of the total Ownership Interests in Franchisee and all Persons who have other direct or indirect interests in Franchisee or this Agreement (the Persons or entities who are Owners as at the date of this Agreement are listed in Section 2 of Schedule 1 to this Agreement).
(52) Premises refers to the location of the Franchised Business agreed and approved by Franchisor, specified in Section 4 of Schedule 1.
(b) All amounts in full, net of any bank charges by direct deposit into Franchisor's bank account, as specified in Section 7 of Schedule 1, or in such other manner as Franchisor notifies Franchisee in writing, including direct debit from Franchisee's bank or credit account. Franchisee must execute any forms or documents required by Franchisor in order to effect payments by way of direct debit or any other electronic method.
(61) Special Conditions means the special conditions (if any) specified in Section 12 of Schedule 1.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Schedule 1 of the Franchise Agreement contains several key details about the franchisee, owners, premises, and any special conditions. Specifically, Section 2 of Schedule 1 lists the Persons or entities who are Owners as at the date of the Agreement. Section 4 specifies the location of the Franchised Business agreed and approved by Chatime. Section 7 specifies the bank account details for payments to Chatime. Section 12 contains any special conditions that apply to the franchise agreement.
For a prospective Chatime franchisee, this means that Schedule 1 is a critical document that outlines the specific terms and conditions of their franchise agreement. It identifies who the owners of the franchise are, where the business will be located, how payments should be made to Chatime, and any unique conditions that apply to their particular franchise.
The reference to "Owners" exceeding 10% ownership interest is important because it clarifies who Chatime considers to be a significant owner requiring disclosure. The specification of the premises in Section 4 ensures that both Chatime and the franchisee are in agreement about the location of the business. The inclusion of bank account details in Section 7 streamlines the payment process. Finally, Section 12 allows for the inclusion of any special conditions that may not be covered in the standard franchise agreement.
Prospective franchisees should carefully review Schedule 1 to ensure they understand all of the details and conditions that apply to their franchise. They should also consult with an attorney or financial advisor to ensure they are making an informed decision.