Who is included in the 'Chatime Group' as defined in the franchise agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Chatime Group means the Franchisor and each of its parents, subsidiaries, and affiliates and each of their respective directors, officers, employees, agents and contractors.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the 'Chatime Group' is defined within the franchise agreement. This group encompasses Chatime itself, along with its parent companies, subsidiaries, and affiliates. The definition extends to include the respective directors, officers, employees, agents, and contractors of each of these entities.
This definition is important for franchisees as it clarifies the scope of parties with whom they may be interacting and who are covered under various clauses of the franchise agreement, such as those related to liability and indemnification. For instance, the franchisee may be required to indemnify the entire Chatime Group against certain losses or liabilities.
Understanding this definition helps a franchisee recognize the full extent of the corporate structure and the individuals or entities that have a stake in the franchise operation. It is typical in franchising to define such a group to ensure all related parties are protected and included in agreements and legal considerations.