What document must the Chatime Managing Owner, Operating Manager, and other management personnel execute?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) You agree to ensure that the Managing Owner, Operating Manager, and any other management personnel of Franchisee shall execute and deliver a Confidentiality and Non-Competition Agreement in the form attached as Exhibit 4.
At our request, you will submit to us a copy of all such written agreements.
You will ensure that each such person complies with the terms of such agreement during the period that he or she is employed by or associated with your Franchised Business.
Any breach of such agreement by any such person will be deemed a breach of this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Managing Owner, Operating Manager, and any other management personnel must execute and deliver a Confidentiality and Non-Competition Agreement. This agreement is in the form attached as Exhibit 4 to the FDD. Chatime also requires that the franchisee submit a copy of all such written agreements upon request.
Chatime emphasizes that each person must comply with the terms of the Confidentiality and Non-Competition Agreement during their employment or association with the franchised business. Any breach of this agreement by any of these individuals will be considered a breach of the Franchise Agreement itself, which could have significant consequences for the franchisee.
This requirement is fairly standard in franchising, as franchisors seek to protect their confidential information, trade secrets, and customer relationships. The non-competition aspect typically restricts these individuals from engaging in similar businesses during and for a certain period after their association with the Chatime franchise. Prospective franchisees should carefully review Exhibit 4 to understand the specific terms and restrictions of this agreement, as it will impact not only themselves but also their key personnel.