For how long after a person's employment or contract with Chatime is terminated is a franchisee prohibited from employing or engaging that person?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
2. NON-COMPETITION DURING AND AFTER THE RELATIONSHIP WITH FRANCHISEE
I agree that I shall not, and I will ensure that any person or entity which I control shall not:
- (d) procure, employ, seek to employ or engage, or appoint in any capacity (whether as a consultant, director or otherwise), any person who is or has been in the 12 months prior to such action an employee or independent contractor of the Franchisor or any Chatime Store Business
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees are restricted from employing or engaging any person who is or has been an employee or independent contractor of Chatime or any Chatime store business for a period of 12 months prior to such action. This restriction applies during what is defined as the Restraint Period and within the Restraint Area.
The FDD specifies that this agreement extends to ensuring that any person or entity controlled by the franchisee also adheres to these restrictions. The restrictions cover a range of involvements, including being concerned or interested in any Restrained Business, advising or assisting a Restrained Business, holding securities in an entity engaging in a Restrained Business, and employing individuals associated with Chatime or its stores.
These covenants are designed to protect Chatime's interests by preventing franchisees from leveraging knowledge or relationships gained through the franchise to benefit competing businesses or to unfairly recruit personnel. The Restraint Area is defined as the Territory, any area within twenty-five (25) miles from any Outlet operated by Franchisee, and any area within twenty-five (25) miles of any Chatime Store. The Restraint Period is defined as a continuous uninterrupted period of two (2) years commencing on and from the expiration or termination date of this Agreement.