On what page of the Chatime FDD does it discuss definitions and interpretation?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
It is Agreed
Definitions and Interpretation
1.1 Definitions
The following words have these meanings in this Agreement unless the contrary intention appears:
(1) Affiliate means any Person that directly or indirectly Controls, that is directly or indirectly Controlled by, or that is under Common Control or Controlling Interest with, a specified Person.
(2) Agency means any governmental entity or agency.
(3) Agreement means this document, including any schedule or annexure to it.
(4) Alternative Methods of Distribution means any alternative distribution methods or channels (such as sales to grocery stores, sales via direct mail, subscriptions, or the internet, or other alternative distribution methods or channels.
(5) Approved Supplier means Franchisor or a supplier or suppliers approved in writing by Franchisor for the supply of Products and equipment to Franchisee.
(6) Brand Marketing Fee means two percent (2.0%) of Gross Sales, to be paid by Franchisee to Franchisor.
(7) Business Day means a day that is not a Saturday or Sunday or any other day which is a public holiday in the place where an act is to be performed or a payment is to be made.
(8) Business Hours means the hours of operation of each Outlet pursuant to any Legal Requirements and/or the terms of any lease or other document conferring a right to occupy the premises at which an Outlet is located.
(9) Chatime Menu means the food and beverage items specified in the Operations Manual or otherwise in writing by Franchisor which must be offered for sale by Franchisee from the Outlet and includes, as relevant, any specifications in relation to those products.
(10) Chatime Network means the network of Chatime Outlets in the Territory.
(11) Chatime Store means a full service retail store that:
(a) Offers Products listed on the Chatime Menu for sale;
(b) Meets Franchisor's standards and specifications;
(c) Operates under the Marks and the System; and
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
The Chatime 2025 Franchise Disclosure Document (FDD) includes definitions and interpretations within Item 23, titled "Receipts." Specifically, the document introduces these definitions under the section "It is Agreed," followed by a numbered list of defined terms. This section clarifies the meaning of various terms used throughout the franchise agreement, ensuring both Chatime and the franchisee have a mutual understanding of their contractual obligations. These definitions are crucial for interpreting the agreement accurately and resolving potential disputes.
For a prospective Chatime franchisee, understanding these definitions is essential before signing the franchise agreement. The definitions cover a wide range of terms, including "Affiliate," "Agency," "Agreement," "Alternative Methods of Distribution," and "Approved Supplier," among others. Each term has a specific meaning that could impact the franchisee's rights and responsibilities. For instance, the definition of "Approved Supplier" dictates where the franchisee can source products and equipment, while the definition of "Chatime Menu" specifies the food and beverage items that must be offered at the outlet.
The inclusion of these definitions in Item 23 underscores their importance in the overall franchise agreement. By providing clear and concise definitions, Chatime aims to minimize ambiguity and ensure that franchisees are fully aware of their obligations. This level of detail is typical in franchise agreements, as it helps to protect both the franchisor and the franchisee by establishing a clear understanding of the terms and conditions of the franchise relationship.
Prospective franchisees should carefully review these definitions and seek clarification from Chatime or a legal professional if any terms are unclear. A thorough understanding of these definitions can help franchisees make informed decisions and avoid potential misunderstandings or disputes in the future. Paying close attention to these details is a critical step in the due diligence process for any franchise opportunity.