What is included in the definition of 'Cost' according to the Chatime FDD?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (14) Cost means any cost charge, expense, outgoing, payment or other expenditure of any nature and where appropriate includes fees and disbursements payable to contractors, consultants, lawyers, and other advisers (including Legal Costs).
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, 'Cost' is broadly defined. It encompasses any type of expenditure, charge, expense, outgoing, or payment. This definition extends to include fees and disbursements that are payable to various professionals and advisors. These professionals include contractors, consultants, lawyers, and other advisors, explicitly mentioning legal costs as part of the definition.
For a prospective Chatime franchisee, this definition is important because it clarifies what expenses can be categorized as 'Costs' within the context of the franchise agreement. This is particularly relevant when dealing with financial obligations or when 'Costs' are referenced in other clauses of the agreement, such as those related to marketing fees or other operational expenses. Understanding the breadth of this definition helps in budgeting and financial planning.
The inclusion of fees for professionals like lawyers and consultants is notable. Franchisees should be aware that if they need to seek advice from these experts, those costs would fall under this definition. This could be relevant in situations where legal or expert consultation is required for compliance, dispute resolution, or other business-related matters. The comprehensive nature of this definition ensures that all types of expenditures are accounted for, providing clarity and reducing potential ambiguity in financial matters related to the franchise agreement.