How is 'Control' defined in the Chatime franchise agreement regarding the management or policies of a Person?

According to Chatime's 2025 Franchise Disclosure Document, the term 'Control, Controlled by, or under Common Control or Controlling Interest' is specifically defined within the franchise agreement. This definition is important because it clarifies the relationships between different entities that may be involved with the franchise, such as affiliates or related businesses.

'Control' is defined as possessing the power to direct or influence the management or policies of another entity. This influence can be exerted through various means, including owning more than 50% of the voting interest in the entity. Control can also be established through contractual agreements or other arrangements that grant the power to dictate management decisions.

For a prospective Chatime franchisee, this definition is crucial because it outlines the circumstances under which Chatime might exert influence over their business operations or policies. It also clarifies how affiliated entities are defined and how their actions might be related to or impact the franchise agreement. Understanding this definition helps franchisees recognize potential conflicts of interest or areas where Chatime's corporate policies could affect their individual franchise.

This definition is fairly standard in franchise agreements, as franchisors often need to maintain control over brand standards and operational procedures across all franchise locations. Franchisees should carefully consider this definition and how it might affect their autonomy in managing their Chatime business.