What page in the Chatime FDD discusses definitions and interpretation?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
It is Agreed
1 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 attachments 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 Developer and/or Franchisees.
- (6) 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.
(7) 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.
(8) 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 Franchisees from Outlets and includes, as relevant, any specifications in relation to those products.
(9) Chatime Network means the network of Chatime Outlets in the Development Area.
(10) 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
(d) is operated by Developer pursuant to a valid Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime FDD, the definitions and interpretation are discussed in Item 23. Specifically, multiple chunks of Item 23 contain sections titled "Definitions and Interpretation" or simply "Definitions". These sections provide the meanings of various terms used throughout the franchise agreement. The FDD uses definitions to ensure clarity and avoid ambiguity in the legal document.
These definitions are crucial for a prospective Chatime franchisee because they clarify the rights, responsibilities, and obligations outlined in the franchise agreement. Understanding these defined terms is essential for interpreting the contract accurately and making informed decisions. For example, the definition of "Approved Supplier" dictates where a franchisee can source products and equipment, while the definition of "Chatime Menu" specifies the food and beverage items that must be offered for sale.
Chatime includes definitions for terms such as "Affiliate," "Agency," "Agreement," "Alternative Methods of Distribution," "Approved Supplier," "Business Day," "Business Hours," "Chatime Menu," and "Chatime Network." These definitions help to clarify the scope and limitations of the franchise agreement, ensuring that both the franchisor and franchisee have a shared understanding of their contractual obligations. The definitions extend to terms like "Confidential Information," "Business System," and "Chatime Store Business," which protect Chatime's brand and operational methods.
For a prospective franchisee, carefully reviewing and understanding these definitions is a critical step in evaluating the Chatime franchise opportunity. It is advisable to seek legal counsel to ensure a full understanding of the implications of each defined term before entering into a franchise agreement. Paying close attention to these definitions can help a franchisee avoid potential misunderstandings or disputes with Chatime during the term of the franchise agreement.