What happens if the Chatime Developer receives the Acceptance Notice during the Offer Period?

According to Chatime's 2025 Franchise Disclosure Document, if the Developer receives the Acceptance Notice during the Offer Period, the Developer must sell, and Chatime must purchase the business. This transaction will occur under the terms and conditions outlined in the Offer Notice, potentially with variations included in the Acceptance Notice.

The Acceptance Notice allows Chatime to modify the terms of the original offer, provided these changes are not commercially less favorable to the Developer. For instance, if a third party offers consideration that Chatime cannot reasonably match, Chatime may offer the reasonable equivalent in cash to purchase the interests being transferred.

This clause ensures Chatime has the right to match any offer the Developer receives from a third party, maintaining control over the Chatime network. For a prospective Chatime Developer, this means that while they can seek outside offers for their business, Chatime has the final say in who ultimately acquires it, safeguarding brand consistency and strategic alignment.