What is the Offer Period, in days, that Chatime Franchisor has to accept the Developer's offer?

According to the 2025 Chatime Franchise Disclosure Document, the Offer Period is defined as the period of 45 days after the Franchisor receives the Offer Notice from the Developer. This clause relates to the process if a Developer receives an offer from a third party to purchase the business. The Developer must provide written notice to Chatime, and Chatime then has 45 days to decide whether to accept the offer.

Chatime's right to match a third-party offer is a fairly standard clause in franchise agreements. This allows Chatime to maintain control over who becomes a part of their franchise system and to protect the brand. If Chatime chooses to accept the offer, the terms can vary from the original offer, provided they are not commercially less favorable to the Developer.

If Chatime does not accept the offer within the 45-day Offer Period, the Developer is then entitled to sell the business to the third party within 60 days after the end of the Offer Period. However, this sale must comply with specific conditions, including adherence to clause 11.3 and ensuring that the sale price and terms are not more favorable to the third party than what was initially offered to Chatime. If the Developer does not complete the sale within this 60-day window, Chatime's rights are revived, and the Developer must re-offer the business to Chatime before proceeding with any other sale.