For a Chatime franchise, are the conditions set out in Schedule 1 considered part of the franchise agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
The party identified as Franchisee in Section 1 of Schedule 1 ("Franchisee or you")
(61) Special Conditions means the special conditions (if any) specified in Section 12 of Schedule 1.
(b) All amounts in full, net of any bank charges by direct deposit into Franchisor's bank account, as specified in Section 7 of Schedule 1, or in such other manner as Franchisor notifies Franchisee in writing, including direct debit from Franchisee's bank or credit account. Franchisee must execute any forms or documents required by Franchisor in order to effect payments by way of direct debit or any other electronic method.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, Section 1 of Schedule 1 identifies the Franchisee, Developer, and Guarantor. Section 7 of Schedule 1 specifies the bank account details for payments to the Franchisor. Section 12 of Schedule 1 outlines any special conditions that apply to the franchise agreement.
These references within the franchise agreement explicitly incorporate Schedule 1 as a component of the agreement. This means that the conditions and information contained within Schedule 1 are legally binding and enforceable as part of the overall franchise agreement between Chatime and the franchisee.
As a prospective Chatime franchisee, it is crucial to carefully review Schedule 1, as it contains essential details such as payment instructions and any specific conditions that may apply to your franchise. Understanding these details is vital for compliance and for ensuring a clear understanding of your rights and obligations under the franchise agreement.