How is 'Control, Controlled by, or under Common Control or Controlling Interest' defined in relation to Chatime?

According to Chatime's 2025 Franchise Disclosure Document, the terms 'Control, Controlled by, or under Common Control or Controlling Interest' are specifically defined within the agreement.

The FDD states that these terms mean the direct or indirect possession of the power to direct or cause the direction of the management or policies of any other Person. This power can be exerted through various means, including owning more than 50% of the voting interest, by contract, or otherwise.

For a prospective Chatime franchisee, this definition is important because it clarifies the circumstances under which another entity might be considered an affiliate. This could have implications for various aspects of the franchise agreement, such as approved supplier relationships or territorial rights. Understanding this definition helps franchisees recognize potential conflicts of interest or other situations where the control or influence of another party could affect their business.

In essence, this definition ensures that Chatime and its franchisees understand the scope of 'control' within the franchise network, which is crucial for maintaining transparency and preventing undue influence from external entities.