If Chatime transfers its rights, interests, obligations, or liabilities under the Franchise Agreement by novation to a third party, what document are Franchisee Parties required to execute upon Chatime's request?

According to Chatime's 2025 Franchise Disclosure Document, if Chatime transfers its rights, interests, obligations, or liabilities under the Franchise Agreement by novation to a third party, the Franchisee Parties must execute a specific document. This document is a deed or agreement of novation, which must be in a form prepared by Chatime.

The purpose of this document is to substitute the third party in place of Chatime. This means the third party will be entitled to the benefits and responsible for the rights, obligations, and liabilities that Chatime had under the original Franchise Agreement. This substitution becomes effective upon the franchisee's execution of the deed or agreement of novation.

This requirement ensures that if Chatime decides to transfer its obligations to another party, the franchisee acknowledges and agrees to the new arrangement. The franchisee's signature on the deed or agreement of novation formalizes the transfer and binds the franchisee to the new party under the terms of the original agreement. It is important for a prospective franchisee to carefully review any such document and understand the implications of the novation, as it essentially replaces Chatime with a new entity as the franchisor.