Does the definition of 'Interested Party' for Chatime include relatives by marriage?
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 relatives by marriage. Specifically, the FDD states that an Interested Party includes lineal and collateral relatives by blood or by marriage of any person with a direct or indirect legal or beneficial interest in the franchisee.
This definition is important because it broadens the scope of individuals who may be subject to certain obligations or requirements under the franchise agreement. For example, if a franchisee's spouse's sibling (a collateral relative by marriage) holds an interest in the franchisee's business, that relative could be considered an Interested Party.
Prospective franchisees should carefully consider this definition and how it might apply to their specific circumstances, including family members who may have some form of connection to the franchise. It is important to understand the implications of having a relative by marriage classified as an Interested Party, as it could affect their rights and responsibilities under the franchise agreement.