What does 'Legal Costs' include for a Chatime franchise, according to the 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 the 2025 Chatime Franchise Disclosure Document, Legal Costs are included within the definition of 'Cost'.
'Cost' is defined as 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. This means that Legal Costs for a Chatime franchise encompass a broad range of expenses related to legal services, including fees paid to lawyers and other legal advisors.
This definition is important for franchisees as it clarifies what types of expenses can be classified as 'Costs' in various clauses of the franchise agreement, such as those related to indemnity or the reimbursement of expenses in case of a default. Understanding this definition helps a franchisee anticipate potential financial obligations related to legal matters and other professional services.