Where can Chatime franchisees find more detailed information about their obligations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
in 2024.
Item 9: Franchisee's Obligations
This table lists your principal obligations under the Franchise Agreement and other
agreements. It will help you find more detailed information about your obligations in these agreements and in other Items of this FDD.
| Obligation | Article in Franchise | FDD Item | |
|---|---|---|---|
| Agreement (FA) or Multi-Unit Development Agreement (MDA) | |||
| a. Site selection and acquisition/lease | FA: Articles 2 and 4 MDA: Articles 3 and 4 | Items 1, 11, and 12 | |
| b. Pre-opening purchase/lease | FA: Articles 4 and 6 MDA: Articles 3 and 4 | Items 1, 6, 7, 8, and 11 | |
| c. Site development and other pre- | FA: Articles 2, 3, 4, and 6 | Items 1, 6, 7, and 11 | |
| opening requirements | MDA: Articles 3 and 4 | ||
| d. Initial and ongoing training | FA: Articles 3 and 4 MDA: Not applicable | Items 5 and 11 | |
| e. Opening | FA: Articles 2, 3, 4, and 5 MDA: Not applicable | Item 11 | |
| f. Fees | FA: Article 6 MDA: Article 5 | Items 5 and 6 | |
| g. Compliance with standards and policies/Operations Manual | FA: Articles 3, 5, 6, 7, 17, and 25 MDA: Article 4 | Item 11 | |
| h. Trademarks and Proprietary | FA: Articles 4, 8, and 11 | Items 13 and 14 | |
| information | MDA: Article 9 | ||
| i. Restrictions products/services offered | FA: Articles 2, 3, 4, and 5 MDA: Article 4 | Item 16 | |
| j. Warranty and customer service | FA: Article 4 | Item 11 | |
| requirement | MDA: Article 4 | ||
| k. Territorial development and | FA: Article 2 MDA: Article | Items 1 and 12 | |
| sales quotas | 2 and Schedule 1 | ||
| l. Ongoing product/service | FA: Articles 4 and 5 MDA: | Item 8 | |
| purchases | Not applicable | ||
| m. Maintenance, appearance and | FA: Articles 3, 4, and 5 | Item 11 | |
| remodeling requirements | MDA: Not applicable | ||
| n. Insurance | FA: Article 5 MDA: Not applicable | Items 7 and 8 | |
| o. Advertising | FA: Article 7 MDA: Not applicable | Items 6 and 11 | |
| p. Indemnification | FA: Article 10 MDA: Article 8 | Item 6 | (Table continued on following page) |
| Obligation | Article in Franchise | FDD Item |
|---|---|---|
| Agreement (FA) or Multi-Unit Development Agreement (MDA) | ||
| q. Owner’s participation/ | FA: Articles 5, 8, and 9 | Items 11 and 15 |
| management/staffing | MDA: Articles 3 and 4 | |
| r. Records and reports | FA: Article 5 MDA: Article 4 | Item 6 |
| s. Inspections and audits | FA: Article 5 MDA: Article 4 | Items 6 and 11 |
| t. Transfer | FA: Articles 12 and 13 MDA: Articles 10 and 11 | Item 17 |
| u. Renewal | FA: Articles 2 and 6 MDA: Article 2 | Item 17 |
| v. Post-termination obligations | FA: Article 17 MDA: Articles 6, 7 and 15 | Item 17 |
| w. Non-competition covenants | FA: Article 9 MDA: Articles 7 and 15 | Item 17 |
| x. Dispute resolution | FA: Article 16 MDA: Article 14 | Item 17 |
| y. |
Source: Item 9 — Franchisee's Obligations (FDD pages 25–27)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Item 9 provides a table outlining a franchisee's principal obligations under the Franchise Agreement and other related agreements. This table serves as a roadmap, directing franchisees to specific articles within the Franchise Agreement (FA) or Multi-Unit Development Agreement (MDA), as well as to other relevant items within the FDD itself, where more detailed information can be found.
The table in Item 9 of the Chatime FDD covers a wide range of obligations, including site selection and acquisition/lease, pre-opening purchases and leases, site development, initial and ongoing training, and the store opening process. It also addresses ongoing responsibilities such as fee payments, compliance with standards and policies outlined in the Operations Manual, adherence to trademark and proprietary information guidelines, and any restrictions on products or services offered.
Furthermore, the table extends to obligations related to warranty and customer service, territorial development and sales quotas, ongoing product/service purchases, maintenance and remodeling requirements, insurance, advertising, and indemnification. It also includes owner participation, management, staffing, record-keeping, inspections, audits, transfer conditions, renewal processes, post-termination obligations, non-competition covenants, dispute resolution, and other miscellaneous duties. By referencing the specific articles and FDD items listed in the table, Chatime franchisees can gain a comprehensive understanding of their responsibilities and ensure they are meeting all contractual requirements.
For example, if a Chatime franchisee wants to understand their obligations related to site selection, the table in Item 9 directs them to Articles 2 and 4 of the Franchise Agreement or Articles 3 and 4 of the Multi-Unit Development Agreement, as well as Items 1, 11, and 12 of the FDD. This structured approach allows franchisees to quickly locate and review the information most relevant to their specific needs and concerns.