What are the options available to the Chatime franchisor regarding the agreement the assignee must execute?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) At the option of Franchisor:
- (a) The assignee executes Franchisor's then-standard form franchise agreement for the balance remaining of the Initial Term (including any existing option for a New Term); or
- (b) Franchisee and the assignee execute an assignment of Franchisee's rights and obligations under this Agreement to the assignee in a form required by Franchisor,
and Franchisee and the assignee execute any other documents then used by Franchisor for the grant of Chatime franchises;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, when a franchisee seeks to assign their interest in the franchise, Chatime has options regarding the agreement the assignee must execute. Specifically, Chatime can choose one of two options.
First, Chatime can require the assignee to execute Chatime's then-standard form franchise agreement for the balance remaining of the initial term, including any existing option for a new term. This ensures that the assignee is bound by the most current terms and conditions that Chatime uses for its franchisees.
Alternatively, Chatime can choose to have the franchisee and the assignee execute an assignment of the franchisee's rights and obligations under the existing agreement to the assignee, using a form required by Chatime. In addition to either of these options, the franchisee and assignee must execute any other documents then used by Chatime for granting franchises. This allows Chatime to ensure proper documentation and legal transfer of the franchise rights and obligations.