factual

In the Chatime FDD, how should a provision of the agreement be construed if a party was responsible for its preparation?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (5) A provision of this Agreement will not be construed to the disadvantage of a party merely because that party was responsible for the preparation of the Agreement or the inclusion of the provision in the Agreement.

Source: Item 23 — Receipts (FDD pages 58–262)

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, the franchise agreement will not be interpreted to the disadvantage of any party simply because that party was responsible for drafting the agreement or including a specific provision. This means that if there's any ambiguity in the contract language, it won't automatically be held against Chatime or the franchisee just because they proposed or wrote that particular section. This clause promotes fairness in the interpretation of the agreement.

This type of clause is relatively standard in franchise agreements. It prevents a situation where the drafting party is automatically penalized for any unclear language. Instead, the agreement will be interpreted based on its overall intent and the understanding of both parties at the time of signing. This encourages open communication and negotiation during the franchise agreement process.

For a prospective Chatime franchisee, this means you shouldn't hesitate to propose changes or seek clarification on any part of the agreement. The fact that you suggested an edit won't be used against you later if a dispute arises over the interpretation of that clause. It's always wise to have legal counsel review the franchise agreement to ensure your interests are protected and that you fully understand all the terms and conditions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.