What information must be inserted for the Franchisee in the Chatime franchise agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
1. DEFINITIONS
The following definitions apply in this document (this "Agreement"):
Business Name means Chatime any other name or logo associated with operation of the Chatime Store Business as the Franchisor shall notify the Franchisee of in accordance with the terms of the Franchise Documents from time to time.
Franchised Business means the Chatime Store Business operated by the Franchisee from the Premises in accordance with the Franchise Documents.
2.4 Development Obligations
(1) Franchisee agrees that during the Initial Term, it will at all times faithfully, honestly, and diligently perform its obligations under this Agreement to open and operate the Franchised Business at the Premises, and will continuously use its best efforts to promote and enhance the Chatime Network Name.
2.5 Subcontracting
This Agreement is predicated on the ongoing, direct, and exclusive involvement of Franchisee in the Franchised Business. No person other than an employee of Franchisee or a professional or other advisor appointed on normal commercial terms is to be involved in the Franchised Business without the prior written consent of Franchisor. In addition, Franchisee must not sub-franchise, sublicense, subcontract, share, divide, or partition rights under this Agreement without Franchisor's prior written. Franchisor may in its absolute discretion withhold such consent.
2.6 Option for New Term
(1) Franchisor grants to Franchisee the option to:
(a) Operate as Franchisee in the Territory; and
(b) Enter into a new franchise agreement with Franchisor (based on Franchisor's thencurrent franchise agreement), for the New Term subject to the conditions set out in these clauses 2.6(1) to 2.6(4) (the Option).
(2) Franchisee must notify Franchisor in writing of its intention to exercise the Option not more than 12 Months and not less than 8 Months prior to the end of the Initial Term.
(3) Franchisee's Option pursuant to clause 2.6(2) is subject to all of the following conditions being satisfied:
(a) Franchisee has substantially complied with all material provisions of this Agreement throughout the Initial Term.
(b) At the date of giving Franchisor notice of its intention to exercise the Option and as at the end of the Initial Term, there is no outstanding breach of this Agreement or any Collateral Agreement which has not been remedied.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, several definitions within the agreement refer to information specific to the franchisee. The "Business Name" will be Chatime, along with any other name or logo associated with the operation of the Chatime Store Business, as notified by the franchisor to the franchisee through the Franchise Documents. The "Franchised Business" is defined as the Chatime Store Business operated by the franchisee from the premises, following the guidelines set forth in the Franchise Documents.
Furthermore, the agreement emphasizes the franchisee's role and obligations. The franchisee must faithfully perform their obligations to open and operate the franchised business at the designated premises and continuously promote the Chatime Network Name. The agreement is built upon the franchisee's direct and exclusive involvement in the franchised business, with restrictions on subcontracting or transferring rights without the franchisor's consent.
Additionally, the Franchisee has the option to operate in the Territory and enter into a new franchise agreement with Chatime for a New Term, provided they meet certain conditions. These conditions include substantial compliance with the agreement's material provisions throughout the initial term and the absence of any outstanding breaches. The franchisee must also notify Chatime of their intention to exercise this option within a specified timeframe, not more than 12 months and not less than 8 months before the initial term ends. These clauses ensure that the agreement is tailored to the specific franchisee and their business operations, while also maintaining Chatime's brand standards and operational consistency.