What are the Franchisor's options regarding the agreement executed by the assignee when a Chatime developer seeks to assign their rights and obligations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(4) At the option of Franchisor:
(a) The assignee executes Franchisor's then-standard form development business agreement for the balance remaining of the Initial Term (including any existing option for a New Term); or
(b) Developer and the assignee execute an assignment of Developer's rights and obligations under this Agreement to the assignee in a form required by Franchisor,
and Developer and the assignee execute any other documents then used by Franchisor for the grant of Chatime development business;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, when a developer seeks to assign their rights and obligations, Chatime has options regarding the agreement executed by the assignee. Specifically, Chatime has the option to require one of two actions.
First, Chatime can require that the assignee execute Chatime's then-standard form development business agreement for the balance remaining of the initial term, including any existing option for a new term. This ensures that the assignee is bound by the most current agreement terms Chatime uses.
Alternatively, Chatime can require that the developer and the assignee execute an assignment of the developer's rights and obligations under the existing agreement to the assignee, using a form required by Chatime. In addition to this assignment, Chatime can also require the developer and assignee to execute any other documents then used by Chatime for granting development businesses. This allows Chatime to maintain control over the assignment process and ensure all necessary documentation is in place.