Does the Chatime franchisee have to submit copies of the Confidentiality and Non-Competition Agreements to the franchisor upon request?
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, franchisees are required to ensure that their Managing Owner, Operating Manager, and any other management personnel execute and deliver a Confidentiality and Non-Competition Agreement. These agreements must be in the form attached as Exhibit 4. Chatime can request a copy of all such written agreements from the franchisee.
This requirement ensures that key personnel associated with the Chatime franchise are bound by confidentiality and non-competition terms, protecting Chatime's interests and proprietary information. Any breach of these agreements by the franchisee's personnel is considered a breach of the Franchise Agreement itself, which could lead to penalties or termination of the franchise.
For a prospective Chatime franchisee, this means they must not only ensure that the relevant personnel sign these agreements but also be prepared to provide copies to Chatime upon request. This obligation extends to ensuring that these individuals comply with the terms of the agreements throughout their association with the franchised business. This is a fairly standard practice in franchising, as franchisors typically want to ensure that key personnel are committed to protecting the brand and its confidential information.