What is the deadline for the landlord to deliver the Leased Premises to the Chatime Franchisor?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
If Landlord may not legally obtain possession of the Leased Premises or if Landlord is unable to deliver the Leased Premises to Franchisor within six (6) months from the date Franchisor notifies Landlord of its election to continue the use of the Leased Premises, then Franchisor shall have the right at any time thereafter to rescind its election to acquire a leasehold interest in the Leased Premises and to terminate the Lease or any new lease between it and Landlord for the Leased Premises, and Landlord shall release Franchisor from all of its obligations under the Lease or any new lease.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the landlord has a maximum of six months to deliver the Leased Premises to Chatime after Chatime notifies the landlord of its decision to continue using the space. If the landlord cannot legally obtain possession or deliver the premises within this six-month timeframe, Chatime has the right to rescind its election to acquire the lease and terminate the lease agreement.
This clause protects Chatime from prolonged delays in accessing the Leased Premises, which could significantly impact the franchisee's ability to open and operate their Chatime store. It also allows Chatime to terminate the lease agreement if the landlord cannot fulfill their obligations within a reasonable period, mitigating potential financial losses for both Chatime and the franchisee.
For a prospective Chatime franchisee, this means that the lease agreement includes a safeguard against excessive delays in obtaining the Leased Premises. However, it is important to note that Chatime has the right, but not the obligation, to terminate the lease if the landlord fails to deliver the premises within six months. The franchisee should confirm with Chatime their specific plans and obligations should such a delay occur.