What information about the Owners of the Developer must be provided to Chatime immediately upon request, including the specific details required?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer:
- (1) Warrants that the Owners, directors and officers of Developer as at the date of execution are as notified to Franchisor by Developer; and
- (2) Must provide to Franchisor immediately upon request details of the Owners of Developer, including the number and class of Ownership Interests held by each Owner as at:
- (a) The date of execution of this Agreement; and
- (b) Any other date specified by Franchisor.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, as a developer, you must provide details of the owners to Chatime immediately upon request. This includes the number and class of ownership interests held by each owner. This information must be provided as of the date of execution of the agreement and any other date specified by Chatime.
This requirement allows Chatime to maintain an accurate record of who controls the developer entity and ensures transparency in the ownership structure. It also enables Chatime to assess whether any changes in ownership could affect the developer's ability to fulfill its obligations under the agreement.
Furthermore, the developer must warrant that the owners, directors, and officers of the developer as of the date of execution are as notified to Chatime. Any changes to the composition of the developer's owners, directors, and officers, any alteration to the developer's constitution, any disposal of ownership interests, or any reduction or alteration of the developer's capital require Chatime's prior written consent. This provision ensures that Chatime has control over significant changes within the developer's organization.