Does Chatime have an obligation to remedy a Developer's default under the agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) If Developer does not perform or observe any obligation under this Agreement Franchisor may, but does not have to, remedy that default.
In doing so, Franchisor is entitled to rely on the power of attorney in clause 21.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, while Chatime is not obligated to remedy a developer's default, it has the option to do so. Specifically, if a developer fails to meet their obligations under the agreement, Chatime may choose to remedy the default, but is not required to.
If Chatime chooses to remedy a default, it is entitled to rely on the power of attorney detailed elsewhere in the agreement. This means Chatime can take certain actions on behalf of the developer to correct the default.
This flexibility allows Chatime to address issues on a case-by-case basis, but it also means that developers cannot rely on Chatime to step in and fix problems. It is the developer's responsibility to ensure they meet all obligations outlined in the agreement. Prospective developers should understand that Chatime has the discretion, but not the obligation, to assist in remedying defaults.