Does the Chatime definition of 'Agreement' include schedules and annexures?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
It is Agreed
Definitions and Interpretation
1.1 Definitions
The following words have these meanings in this Agreement unless the contrary intention appears:
- (1) Affiliate means any Person that directly or indirectly Controls, that is directly or indirectly Controlled by, or that is under Common Control or Controlling Interest with, a specified Person.
- (2) Agency means any governmental entity or agency.
- (3) Agreement means this document, including any schedule or annexure to it.
- (4) Alternative Methods of Distribution means any alternative distribution methods or channels (such as sales to grocery stores, sales via direct mail, subscriptions, or the internet, or other alternative distribution methods or channels.
- (5) Approved Supplier means Franchisor or a supplier or suppliers approved in writing by Franchisor for the supply of Products and equipment to Franchisee.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the definition of "Agreement" includes the main document itself in addition to any schedules or annexures. This means that any schedules or attachments are legally part of the franchise agreement. Franchisees are bound by all the terms and conditions outlined not only in the main body of the agreement but also in any accompanying schedules or annexures.
Schedules and annexures often contain critical details that supplement the main agreement. These might include specifics on the development area, payment schedules, or operational requirements. For example, Section 4 of Schedule 1 specifies the geographic area or areas that constitute the Development Area. Section 6 of Schedule 1 specifies the amount of the non-recurring development fee. Section 5 of Schedule 1 defines each period of time defined as a Development Period and the Development Quota.
Prospective Chatime franchisees should carefully review all schedules and annexures in addition to the main body of the franchise agreement. Understanding these supplementary documents is essential to fully grasp the scope of their rights, responsibilities, and obligations under the franchise agreement. Ignoring the schedules and annexures could lead to misunderstandings or non-compliance with the terms of the franchise.