Does the definition of 'Interested Party' for Chatime include a child of a person with a direct interest in the Franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(34) Interested Party means any of the following persons designated by Franchisor:
(a) Any person with a direct or indirect legal or beneficial interest in Franchisee, including an interest in any entity directly or indirectly controlling Franchisee (Controlling Entity), or in Franchisee's assets and any person who is an officer, as defined in the applicable domestic legislation, of Franchisee or any Controlling Entity; and
(b) A spouse, child or person with an existing or former relationship of cohabitation, lineal relatives by blood or by marriage or collateral relatives by blood or by marriage of any person specified in clause 1.1(21).
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the definition of "Interested Party" does include a child of a person with a direct interest in the franchisee.
The FDD specifies that an "Interested Party" includes any person with a direct or indirect legal or beneficial interest in the franchisee, including an interest in any entity directly or indirectly controlling the franchisee, or in the franchisee's assets. It also encompasses any person who is an officer of the franchisee or any controlling entity.
Furthermore, the definition extends to include a spouse, child, or person with an existing or former relationship of cohabitation, lineal relatives by blood or by marriage, or collateral relatives by blood or by marriage of any person specified as having a direct or indirect interest in the franchisee. This means that Chatime considers these individuals as having a vested interest in the franchise, potentially impacting their obligations and involvement with the franchise.
This broad definition of "Interested Party" is important for prospective franchisees to understand, as it may impose certain obligations or restrictions on these individuals, such as requiring them to enter into confidentiality and non-compete agreements. Franchisees should carefully review this definition and discuss its implications with Chatime to ensure full compliance and avoid any potential conflicts.