Does the definition of 'Interested Party' for Chatime include officers of any entity controlling 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, an 'Interested Party' includes individuals or entities with a direct or indirect legal or beneficial interest in the franchisee. This extends to any entity directly or indirectly controlling the franchisee, referred to as a 'Controlling Entity'.
Specifically, the definition encompasses any person who is an officer of the franchisee or any Controlling Entity, as defined in the applicable domestic legislation. This means that if the franchisee is a corporation or LLC, the officers of that corporation or LLC, as well as the officers of any entity that controls the franchisee, would be considered 'Interested Parties'.
This definition also extends to the 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). This broad definition has implications for non-compete and confidentiality agreements, as Chatime may require these 'Interested Parties' to sign such agreements.